Rubrik Q3 Earnings Beat Estimates, Revenues Up Y/Y, Shares Up

Rubrik RBRK reported third-quarter fiscal 2026 non-GAAP earnings of 10 cents per share, beating the Zacks Consensus Estimate by 158.82%. The company reported a loss of 21 cents per share in the year-ago quarter.

Total revenues of $350.2 million beat the consensus mark by 9.11% and increased 48% year over year.

Rubrik shares gained 18.78% in after-market trading.

RBRK’s Top-Line Details

Subscriptions (96.1% of total revenues) revenues increased 51.9% year over year to $336.4 million, beating the Zacks Consensus Estimate by 8.84%. The subscription Net Retention Rate (NRR) was more than 120%.

Rubrik, Inc. Price, Consensus and EPS Surprise

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

Cloud ARR also saw strong growth, reaching $1,175 million, which represents a 53% year-over-year increase.

In the reported quarter, Subscription Annual Recurring Revenue (ARR) reached $1.35 billion, representing 34% year-over-year growth. Net New Subscription ARR hit a record $94 million, showcasing strong customer acquisition and expansion.

In the third quarter of fiscal 2026, the number of customers contributing more than $100K in subscription ARR reached 2,638, representing a 27% year-over-year increase. These large customers now account for 86% of Rubrik’s subscription ARR, up from 83% in the previous year.

Rubrik also added a record 23 new customers with subscription ARR of over $1 million, driving more than 50% growth in its $1 million subscription base.

Maintenance revenue (0.4% of total revenues) declined 65.3% year over year to $1.51 million. Other revenue surged 18.8% year over year to $12.3 million.

The company maintained an exceptional Net Promoter Score of more than 80, placing it in the top 1% of enterprise software companies globally.

RBRK’s Operating Details

On a non-GAAP basis, gross margin increased 400 basis points (BPS) year over year to 83%.

On a non-GAAP basis, research & development expenses increased 20.2% year over year to $68.4 million. Sales and marketing expenses were up 24.3% year over year to $163.3 million. General and administrative expenses increased 61.1% year over year to $48.1 million in the reported quarter.  

Operating income was $10.1 million on a non-GAAP basis against the year-ago quarter’s operating loss of $31.2 million.

RBRK’s Balance Sheet & Cash Flow

As of Oct. 31, 2025, cash and cash equivalents and short-term investments were $1.60 billion compared with $1.52 billion as of July 31, 2025.

In the reported quarter, the company generated a cash flow from operations of $85.5 million compared with $64.7 million in the previous quarter.

As of Oct. 31, 2025, free cash flow was $76.9 million compared with $57.5 million as of July 31, 2025.

RBRK Initiates Q4 & FY26 Guidance

For the fourth quarter of fiscal 2026, Rubrik expects revenues between $341 million and $343 million, indicating approximate growth of 33% year over year.

Non-GAAP loss per share is expected to be between 12 cents and 10 cents.

For the fourth quarter of fiscal 2026, the company expects a non-GAAP subscription ARR contribution margin of approximately 9%.   

For fiscal 2026, Rubrik expects revenues between $1.280 billion and $1.282 billion, indicating growth of approximately 44% year over year.

For fiscal 2026, Subscription ARR is expected to be between $1,439 million and $1,443 million.

Non-GAAP loss per share is expected to be between 20 cents and 16 cents.

Free cash flow is expected to be between $194 million-$202 million.

RBRK’s Zacks Rank & Stocks to Consider

Currently, Rubrik has a Zacks Rank #3 (Hold).

Advanced Energy Industries AEIS, Allot ALLT, and Amphenol APH are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. Each stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Advanced Energy Industries’ shares have surged 76.6% in the past six months. The Zacks Consensus Estimate for Advanced Energy Industries' 2025 earnings is pegged at $6.23 per share, indicating an increase of 9.6% over the past 30 days. The figure also rose 67.92% from the year-ago quarter’s reported figure.

Allot shares have gained 5.6% in the past six months. The Zacks Consensus Estimate for Allot 2025 earnings is pegged at 22 cents per share, which increased 57.1% over the past 30 days. This indicates year-over-year growth of 450%.

Amphenol shares have gained 49.4% in the past six months. The Zacks Consensus Estimate for Amphenol’s 2025 earnings has increased 2.17% to $3.29 per share in the past 30 days, indicating year-over-year growth of 74.07%.

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