Rubrik's Cloud Security Platform Expands: A Sign for More Upside?

Rubrik RBRK is benefiting from the rapid expansion of its cloud security platform, which has become a key driver of its growth and market leadership in cyber resilience. In the second quarter of fiscal 2026, Rubrik’s cloud ARR grew 57% year over year, reaching $1.1 billion, driven by the adoption of its Rubrik Security Cloud platform.

Rubrik’s expanding portfolio has been a major growth driver of its success. The company recently launched “Rubrik Agent Cloud”, a new solution aimed at speeding up the adoption of AI agents in enterprises while addressing security and compliance risks. Built on the Rubrik Platform, it offers full lifecycle management for AI agents. This includes real-time monitoring, policy enforcement, and rollback features to ensure secure, accurate, and resilient AI operations.

Rubrik’s focus on innovation further strengthens its cloud security platform. In the second quarter of fiscal 2026, Rubrik acquired Predibase to speed up the use of agentic AI. This gives organizations a platform to easily customize models based on their data and run them on an optimized inference stack. This approach improves accuracy, lowers costs and automates data governance.

Rubrik’s strong demand for its data security solutions and growing client base are expected to benefit the company’s top-line growth. For the third quarter of fiscal 2026, RBRK’s revenues are expected to be between $319 million and $321 million, reflecting a year-over-year growth rate of 35% to 36%.

Rubrik Faces Stiff Competition

Rubrik faces stiff competition in the cybersecurity market from the likes of Fortinet FTNT and Datadog DDOG.

Fortinet is constantly enhancing its cybersecurity ecosystem to provide more comprehensive and integrated solutions. In the second quarter of 2025, Fortinet expanded FortiCloud with three new natively integrated services, which include FortiIdentity, FortiDrive, and FortiConnect. These services improve secure identity management, cloud storage and connectivity.

Datadog’s expanding portfolio has been noteworthy. Datadog recently introduced new integrations on Oracle Cloud Infrastructure, including GPU Monitoring, Cloud Cost Management, and Cloud SIEM. These tools help customers optimize AI workloads, manage cloud expenses, and improve security in their cloud environments.

RBRK’s Share Price Performance, Valuation, and Estimates

RBRK’s shares have gained 17.5% year to date, underperforming the broader Zacks Computer & Technology sector’s return of 22.9% and the Internet - Software industry’s appreciation of 17.9%.

RBRK Stock's Performance

RBRK shares are overvalued, with a forward 12-month Price/Sales of 10.42X compared with the Computer & Technology sector’s 6.88X. RBRK has a Value Score of F.

Price/Sales (F12M)

For fiscal 2026, the Zacks Consensus Estimate for loss is pegged at 49 cents per share, unchanged over the past 30 days. Rubrik reported earnings of $1.57 per share in the year-ago quarter.

Rubrik, Inc. Price and Consensus

Rubrik, Inc. price-consensus-chart | Rubrik, Inc. Quote

Rubrik currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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