Rubrik vs. DELL: Which Data Protection Stock Has the Edge Now?

Rubrik RBRK and Dell Technologies DELL are major players in the enterprise data protection and cybersecurity market. Both companies provide solutions for data backup, recovery, and protection against ransomware in hybrid and multi-cloud environments.

Per the Fortune Business Insights report, the global cybersecurity market was valued at $193.73 billion in 2024. It is expected to grow from $218.98 billion in 2025 to $562.77 billion by 2032. This represents a compound annual growth rate (CAGR) of 14.40% during the forecast period from 2025 to 2032. Both Rubrik and DELL are likely to benefit from the robust growth opportunity highlighted by the rapid pace of growth.

Rubrik or DELL: Which of these Data Protection stocks has the greater upside potential? Let’s find out.

The Case for RBRK Stock

Rubrik is benefiting from its growing client base and increased demand for its data security solutions. In the second quarter of fiscal 2026, Rubrik’s subscription ARR surpassed $1.25 billion, growing 36% year over year, with net new subscription ARR reaching $71 million in the reported quarter. These highlight strong customer adoption and expansion. 

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 expanding clientele, which includes major industry players such as Amazon, CrowdStrike and Alphabet, has been a key catalyst.

In the second quarter of fiscal 2026, the company also experienced a 27% year-over-year increase in customers with more than $100K in subscription ARR, reaching 2,505 customers as of July 31, 2025. Rubrik’s cloud ARR grew 57%, reaching $1.1 billion, driven by the adoption of its Rubrik Security Cloud platform.

The Case for DELL Stock

Dell Technologies has been strengthening its position in the enterprise data protection and cyber resilience market through its PowerProtect portfolio and data security innovations. It provides solutions for organizations of all sizes, from on-premises infrastructure to multi-cloud environments.

The company’s expanding portfolio has been noteworthy. In September 2025, Dell Technologies announced major advancements in private cloud infrastructure, including the general availability of Dell Private Cloud, new PowerStore and PowerMax QLC models, PowerFlex Ultra, and PowerProtect innovations designed to enhance efficiency, security and workload performance.

Further expanding its portfolio, Dell recently announced significant improvements to its AI Data Platform. This upgrade boosts its capability to transform distributed, isolated data into actionable AI insights. 

The platform works with the NVIDIA AI Data Platform and includes high-performance storage and data engines, built-in cyber protection and data management services. These features aim to speed up AI tasks such as training, fine-tuning, Retrieval-Augmented Generation, and inferencing with better scalability and efficiency.

Price Performance and Valuation of RBRK and DELL

In the year-to-date period, Rubrik shares have rallied 19.1%, underperforming DELL shares, which have risen 40.8%. The outperformance in Dell stock can be attributed to its diversified portfolio, strong AI and cloud infrastructure growth.

Despite Rubrik’s expanding portfolio and robust partner base, stiff competition in the cybersecurity market remains a headwind. High investment costs and seasonality in subscription margins posed a risk.

RBRK and DELL Stock Performance

Rubrik shares are currently overvalued, as suggested by a Value Score of F. Dell Technologies shares are cheap, as suggested by a Value Score of A.

In terms of forward 12-month Price/Sales, RBRK shares are trading at 10.52X, higher than DELL’s 0.96X.

RBRK and DELL Valuation

How Do Earnings Estimates Compare for RBRK & DELL?

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

Rubrik, Inc. Price and Consensus

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

The Zacks Consensus Estimate for DELL’s fiscal 2026 earnings is pegged at $9.54 per share, unchanged over the past 30 days. This indicates a 17.20% increase year over year.

Dell Technologies Inc. Price and Consensus

Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. Quote

Conclusion

While both Rubrik and Dell Technologies are well-positioned to benefit from the surging demand for data protection and AI-driven cybersecurity solutions, Dell appears to have the stronger edge at present. Its diversified business model, solid earnings growth and attractive valuation make it a more compelling choice for investors.

Rubrik’s growth potential is tempered by its stretched valuation, stiff competition in the cybersecurity market and ongoing profitability challenges.

Rubrik and Dell Technologies carry a Zacks Rank #3 (Hold) each at present. 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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