Rubrik Reports Record Q1, Raises Full-Year Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: seekingalpha
- Subscription Revenue Surge: Rubrik's subscription ARR reached $1.57 billion in Q1 FY2027, marking a 32% year-over-year increase, which underscores the strong demand for its cybersecurity solutions and solidifies its market position.
- Momentum in Identity Solutions: The identity business grew 38% quarter-over-quarter to over $50 million in subscription ARR, indicating ongoing innovation and market acceptance in identity management, which is expected to drive future revenue growth.
- Optimistic Financial Outlook: The company expects FY2027 subscription ARR to range between $1.854 billion and $1.862 billion, with total revenue projected at $1.638 billion to $1.648 billion, and non-GAAP EPS anticipated between $0.25 and $0.35, reflecting management's confidence in future performance.
- Strong Cash Flow: Free cash flow for Q1 was $74 million, with cash reserves totaling $1.7 billion, demonstrating Rubrik's robust financial health while continuing to invest and expand its business.
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Analyst Views on RBRK
Wall Street analysts forecast RBRK stock price to rise
20 Analyst Rating
19 Buy
1 Hold
0 Sell
Strong Buy
Current: 79.460
Low
95.00
Averages
111.22
High
130.00
Current: 79.460
Low
95.00
Averages
111.22
High
130.00
About RBRK
Rubrik, Inc. is a cloud data management company. The Company has developed Zero Trust Data Security platform. It helps organizations achieve business resilience against cyberattacks, malicious insiders, and operational disruptions. Its Rubrik Security Cloud (RSC) secures data across enterprise, cloud, and software-as-a-service (SaaS) application. RSC detects, analyzes, and remediates data security risks and unauthorized user activities. It has developed a proprietary machine learning and artificial intelligence-based data threat monitoring and management engine to surface anomalous activities and indicators of data breaches. In addition, the Company offers Ruby for artificial intelligence (AI) data defense and recovery. Ruby is designed to help customers scale their data security operations with automation, boosting productivity, and bridging the users’ skills gap.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Rubrik Reports Record Q1, Raises Full-Year Guidance
- Subscription Revenue Surge: Rubrik's subscription ARR reached $1.57 billion in Q1 FY2027, marking a 32% year-over-year increase, which underscores the strong demand for its cybersecurity solutions and solidifies its market position.
- Momentum in Identity Solutions: The identity business grew 38% quarter-over-quarter to over $50 million in subscription ARR, indicating ongoing innovation and market acceptance in identity management, which is expected to drive future revenue growth.
- Optimistic Financial Outlook: The company expects FY2027 subscription ARR to range between $1.854 billion and $1.862 billion, with total revenue projected at $1.638 billion to $1.648 billion, and non-GAAP EPS anticipated between $0.25 and $0.35, reflecting management's confidence in future performance.
- Strong Cash Flow: Free cash flow for Q1 was $74 million, with cash reserves totaling $1.7 billion, demonstrating Rubrik's robust financial health while continuing to invest and expand its business.
See More
Rubrik Shares Surge 47.9% Amid Snowflake's Strong Q1 Results
- Significant Stock Surge: Rubrik's shares rose 47.9% in May 2026, with a notable 19.5% increase in the last two days, reflecting market optimism about its growth prospects despite ongoing uncertainties in the broader market.
- Revenue Growth: In its recently released Q1 2027 report, Rubrik reported a 39% year-over-year revenue increase to $387 million, surpassing analyst expectations of a substantial loss, indicating strong execution and demand in the data security sector.
- Improved Gross Margins: Rubrik's gross margins widened, and the adjusted net income swung from a loss to a modest profit, showcasing advancements in cost control and operational efficiency, which further solidifies its position in the competitive cybersecurity market.
- Market Dependency Risks: While Rubrik benefits from Snowflake's strong performance, the close relationship also poses risks; a poor earnings report from Snowflake could lead to a rapid decline in Rubrik's stock price, presenting potential risks for investors due to this market dependency.
See More
Rubrik Stock Rises 47.9% Following Snowflake's Strong Q1 Report
- Significant Stock Surge: Rubrik's stock rose 47.9% in May 2026, primarily driven by Snowflake's strong Q1 earnings report, highlighting the direct security integration between the two companies that feeds Rubrik's sales pipeline.
- Strong Financial Performance: In its Q1 2027 report, Rubrik achieved a 39% year-over-year revenue increase to $387 million, with the adjusted bottom line swinging from a net loss to a modest profit, showcasing the company's leadership in AI-assisted cybersecurity.
- Positive Market Reaction: Although Rubrik's stock showed little movement in after-hours trading, it has surged approximately 40% over the past three months, indicating market optimism about the health of the data management industry, especially following Snowflake's robust performance.
- Risks and Opportunities: The close relationship with Snowflake means that while Rubrik benefits from its strong quarterly results, a weak report from Snowflake could lead to a rapid decline in Rubrik's stock price, necessitating caution from investors regarding this high-valuation stock.
See More
Lululemon Lowers Full-Year Earnings Guidance, Shares Drop 10%
- Lululemon Earnings Decline: Lululemon Athletica lowered its full-year earnings and revenue guidance, citing market headwinds, which led to a 10% drop in shares, reflecting challenges in the competitive athleisure market.
- Docusign's Lackluster Outlook: Docusign's stock fell 4% as its second-quarter revenue forecast of $865 million to $869 million, while in line with consensus, failed to impress analysts, raising concerns about its growth potential.
- Cooper Companies Beats Expectations: Cooper Companies reported adjusted second-quarter earnings of $1.21 per share, exceeding the $1.10 consensus estimate, with revenue of $1.08 billion surpassing the $1.05 billion forecast, resulting in a 1% increase in shares.
- ServiceTitan Performance Boost: ServiceTitan shares surged 12% after raising its full-year guidance, now expecting adjusted operating income between $142 million and $147 million, exceeding its previous forecast of $128 million to $133 million, indicating strong performance in the contractor market.
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Wall Street Ends Mixed as Chip Stocks Weaken Amid Broadcom Disappointment
- Chip Stock Pressure: Broadcom's (AVGO) disappointing earnings report has led to a decline in other semiconductor stocks, reflecting market concerns about the semiconductor sector that could impact investor confidence and future stock performance.
- Divergent Market Performance: The S&P 500 rose by 0.4%, the Dow Jones reached a new high with a 1.7% increase, while the Nasdaq Composite fell by 0.1%, indicating varying performances across sectors, prompting investors to monitor industry dynamics closely.
- Lululemon Earnings Struggles: Lululemon's (LULU) shares faced pressure in after-hours trading as its first-quarter results revealed ongoing profit and margin challenges, indicating difficulties in restoring its premium position in the athleisure market, which may affect brand perception and market share.
- Rubrik Surpasses Expectations: Rubrik (RBRK) reported first-quarter fiscal 2027 results that exceeded expectations and raised its full-year guidance, showcasing the company's early opportunities in the AI space, which could attract more investor interest in its growth potential.
See More
Rubrik Q1 Earnings Exceed Expectations
- Earnings Beat: Rubrik reported a Q1 non-GAAP EPS of $0.16, surpassing expectations by $0.19, with revenue of $387.07 million reflecting a 39% year-over-year increase, exceeding market forecasts by $20.75 million, indicating robust market demand and execution.
- Q2 Guidance: For Q2 FY 2027, Rubrik anticipates revenue between $395 million and $397 million, above the consensus of $382.83 million, with non-GAAP net income per share projected at $0.03 to $0.05, demonstrating sustained profitability amid growth.
- Full Year Outlook: The company expects total revenue for FY 2027 to range from $1.638 billion to $1.648 billion, exceeding the consensus of $1.61 billion, with subscription ARR projected between $1.854 billion and $1.862 billion, highlighting strong long-term growth potential.
- Cash Flow Performance: Rubrik forecasts free cash flow between $293 million and $303 million, reflecting effective cash flow management during expansion, which enhances investor confidence in its future development.
See More
Rubrik Reports Record Q1, Raises Full-Year Guidance
- Subscription Revenue Surge: Rubrik's subscription ARR reached $1.57 billion in Q1 FY2027, marking a 32% year-over-year increase, which underscores the strong demand for its cybersecurity solutions and solidifies its market position.
- Momentum in Identity Solutions: The identity business grew 38% quarter-over-quarter to over $50 million in subscription ARR, indicating ongoing innovation and market acceptance in identity management, which is expected to drive future revenue growth.
- Optimistic Financial Outlook: The company expects FY2027 subscription ARR to range between $1.854 billion and $1.862 billion, with total revenue projected at $1.638 billion to $1.648 billion, and non-GAAP EPS anticipated between $0.25 and $0.35, reflecting management's confidence in future performance.
- Strong Cash Flow: Free cash flow for Q1 was $74 million, with cash reserves totaling $1.7 billion, demonstrating Rubrik's robust financial health while continuing to invest and expand its business.
See More
Rubrik Shares Surge 47.9% Amid Snowflake's Strong Q1 Results
- Significant Stock Surge: Rubrik's shares rose 47.9% in May 2026, with a notable 19.5% increase in the last two days, reflecting market optimism about its growth prospects despite ongoing uncertainties in the broader market.
- Revenue Growth: In its recently released Q1 2027 report, Rubrik reported a 39% year-over-year revenue increase to $387 million, surpassing analyst expectations of a substantial loss, indicating strong execution and demand in the data security sector.
- Improved Gross Margins: Rubrik's gross margins widened, and the adjusted net income swung from a loss to a modest profit, showcasing advancements in cost control and operational efficiency, which further solidifies its position in the competitive cybersecurity market.
- Market Dependency Risks: While Rubrik benefits from Snowflake's strong performance, the close relationship also poses risks; a poor earnings report from Snowflake could lead to a rapid decline in Rubrik's stock price, presenting potential risks for investors due to this market dependency.
See More
Rubrik Stock Rises 47.9% Following Snowflake's Strong Q1 Report
- Significant Stock Surge: Rubrik's stock rose 47.9% in May 2026, primarily driven by Snowflake's strong Q1 earnings report, highlighting the direct security integration between the two companies that feeds Rubrik's sales pipeline.
- Strong Financial Performance: In its Q1 2027 report, Rubrik achieved a 39% year-over-year revenue increase to $387 million, with the adjusted bottom line swinging from a net loss to a modest profit, showcasing the company's leadership in AI-assisted cybersecurity.
- Positive Market Reaction: Although Rubrik's stock showed little movement in after-hours trading, it has surged approximately 40% over the past three months, indicating market optimism about the health of the data management industry, especially following Snowflake's robust performance.
- Risks and Opportunities: The close relationship with Snowflake means that while Rubrik benefits from its strong quarterly results, a weak report from Snowflake could lead to a rapid decline in Rubrik's stock price, necessitating caution from investors regarding this high-valuation stock.
See More
Lululemon Lowers Full-Year Earnings Guidance, Shares Drop 10%
- Lululemon Earnings Decline: Lululemon Athletica lowered its full-year earnings and revenue guidance, citing market headwinds, which led to a 10% drop in shares, reflecting challenges in the competitive athleisure market.
- Docusign's Lackluster Outlook: Docusign's stock fell 4% as its second-quarter revenue forecast of $865 million to $869 million, while in line with consensus, failed to impress analysts, raising concerns about its growth potential.
- Cooper Companies Beats Expectations: Cooper Companies reported adjusted second-quarter earnings of $1.21 per share, exceeding the $1.10 consensus estimate, with revenue of $1.08 billion surpassing the $1.05 billion forecast, resulting in a 1% increase in shares.
- ServiceTitan Performance Boost: ServiceTitan shares surged 12% after raising its full-year guidance, now expecting adjusted operating income between $142 million and $147 million, exceeding its previous forecast of $128 million to $133 million, indicating strong performance in the contractor market.
See More
Wall Street Ends Mixed as Chip Stocks Weaken Amid Broadcom Disappointment
- Chip Stock Pressure: Broadcom's (AVGO) disappointing earnings report has led to a decline in other semiconductor stocks, reflecting market concerns about the semiconductor sector that could impact investor confidence and future stock performance.
- Divergent Market Performance: The S&P 500 rose by 0.4%, the Dow Jones reached a new high with a 1.7% increase, while the Nasdaq Composite fell by 0.1%, indicating varying performances across sectors, prompting investors to monitor industry dynamics closely.
- Lululemon Earnings Struggles: Lululemon's (LULU) shares faced pressure in after-hours trading as its first-quarter results revealed ongoing profit and margin challenges, indicating difficulties in restoring its premium position in the athleisure market, which may affect brand perception and market share.
- Rubrik Surpasses Expectations: Rubrik (RBRK) reported first-quarter fiscal 2027 results that exceeded expectations and raised its full-year guidance, showcasing the company's early opportunities in the AI space, which could attract more investor interest in its growth potential.
See More
Rubrik Q1 Earnings Exceed Expectations
- Earnings Beat: Rubrik reported a Q1 non-GAAP EPS of $0.16, surpassing expectations by $0.19, with revenue of $387.07 million reflecting a 39% year-over-year increase, exceeding market forecasts by $20.75 million, indicating robust market demand and execution.
- Q2 Guidance: For Q2 FY 2027, Rubrik anticipates revenue between $395 million and $397 million, above the consensus of $382.83 million, with non-GAAP net income per share projected at $0.03 to $0.05, demonstrating sustained profitability amid growth.
- Full Year Outlook: The company expects total revenue for FY 2027 to range from $1.638 billion to $1.648 billion, exceeding the consensus of $1.61 billion, with subscription ARR projected between $1.854 billion and $1.862 billion, highlighting strong long-term growth potential.
- Cash Flow Performance: Rubrik forecasts free cash flow between $293 million and $303 million, reflecting effective cash flow management during expansion, which enhances investor confidence in its future development.
See More
