PALO ALTO, California, August 28, 2026, 07:11 (EDT) — Shares in Rubrik slipped 6.7%, after the company posted 38% revenue growth and lifted its guidance.
- Rubrik stock dropped 6.7% to $99.84 in premarket trade as of 06:44 EDT.
- Fiscal second-quarter revenue climbed 38% to $427.3 million, surpassing expectations.
- Subscription ARR rose by 33% to $1.66 billion, and free cash flow totaled $65.7 million.
- Outlook for full-year revenue and adjusted earnings was raised.
Rubrik, Inc. (NYSE: RBRK) stock dropped 6.7% in premarket trade on Friday, even after the company surpassed quarterly expectations. The slide wiped about $1.5 billion in implied market capitalization.
The response appears to reflect an adjustment of expectations, rather than disappointment with the results. The stock closed at $107.02 on Thursday, up 11.3%, after having risen 47.9% in the past month.
Rubrik was last priced at $99.84, standing 3.9% higher than its previous close of $96.13 on Wednesday. As of 06:44 EDT, premarket trading volumes were limited to 31,170 shares, meaning the price move was less decisive than those in standard sessions MarketWatch quote.
Rubrik posted fiscal second-quarter revenue of $427.3 million, marking a 38% increase year over year and surpassing the $396.3 million consensus estimate, according to Investor’s Business Daily earnings report, by roughly 7.8%.
| Metric | Fiscal Q2 2027 | Comparison |
|---|---|---|
| Revenue | $427.3 million | Up 38% from a year ago; consensus was $396.3 million |
| Adjusted EPS | $0.20 | Consensus was $0.04; $(0.03) reported a year prior |
| Subscription ARR | $1.66 billion | Increased 33% from the prior year |
| Free cash flow | $65.7 million | $57.5 million reported in the same quarter last year |
| Non-GAAP gross margin | 81.0% | 81.6% in the year-ago quarter |
Subscription revenue increased by 37% to $407.2 million, accounting for 95% of sales for the quarter and highlighting the recurring-revenue model.
The operating outlook showed gains as well. Subscription ARR contribution margin rose to 14.0% from 9.4%, and operating cash flow totaled $76.8 million.
Cloud ARR increased by 39%, reaching $1.48 billion. Rubrik reported 3,084 customers each generating a minimum of $100,000 in subscription ARR, representing a 23% rise company release.
Management increased its full-year revenue outlook to a range of $1.685 billion to $1.693 billion, up from the previous forecast of $1.638 billion to $1.648 billion.
The company raised its adjusted earnings forecast to $0.47–$0.53 per share, up from the prior range of $0.25–$0.35. Free cash flow projections have increased to $323 million–$333 million.
Chief Financial Officer Kiran Choudary described the results as “a testament to our confidence in our solid execution at scale.” At the end of July, the company reported $1.75 billion in cash and short-term investments.
Wall Street sentiment is positive. Of analysts followed by StockAnalysis, 28 assign Rubrik either a Buy or Strong Buy rating, while their average price target stands at $109.81 analyst forecast.
The target implies an upside of roughly 10% from the premarket price. New targets were set, with Barclays and DA Davidson at $115 and Baird at $130.
Risks: Rubrik posted a GAAP loss of $0.30 per share. The company’s high valuation puts pressure on continued strong ARR growth, robust renewals, and its ability to withstand increased competition in data protection and cyber recovery.
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