Rubrik Inc. reported fourth‑quarter and full‑year 2026 results that surpassed analyst expectations, with revenue of $377.7 million—up 46% year‑over‑year—and an adjusted earnings per share of $0.04, a turnaround from the $0.11 loss forecasted by analysts. Subscription revenue topped $364.9 million, representing 97% of total revenue, and subscription annual recurring revenue (ARR) rose 34% to $1.46 billion, underscoring the company’s shift to a cloud‑native cyber‑resilience platform.
Gross margin on subscription revenue reached 81.5% on a GAAP basis and 83.7% on a non‑GAAP basis, an increase from 77.4% and 79.7% respectively in the prior year’s quarter. The subscription ARR contribution margin turned positive at 11.6%, up 1,800 basis points year‑over‑year, reflecting stronger pricing power and improved operating leverage as the business scales.
Net new subscription ARR grew to $115 million in the quarter, a 22% increase over the prior period, and the customer base with $100,000 or more in ARR expanded by 25% to 2,805 accounts. The growth in high‑value customers and the expansion of the ARR base demonstrate robust demand for Rubrik’s mission‑control platform in the AI era.
Management raised its fiscal‑2027 outlook, projecting total revenue of $1.597 billion to $1.607 billion and subscription ARR of $1.829 billion to $1.839 billion—an increase of roughly 26% year‑over‑year. The guidance signals confidence in sustained demand for the company’s cloud‑native platform and a clear path toward profitability, with positive non‑GAAP EPS expected for the full year.
Despite the strong results, market reaction was tempered by valuation concerns. Investors focused on Rubrik’s high valuation multiples, the $1 billion short bet by Michael Burry, and insider selling in the last 90 days, all of which contributed to a cautious response amid a broader “SaaSpocalypse” narrative affecting software stocks.
"The acceleration in net new subscription ARR growth in Q4 at our scale demonstrates that Rubrik is an increasingly critical platform for the AI era. We are moving beyond traditional data security to ‘mission control’ for the AI enterprise—delivering risk and recovery critical to safely scale AI transformations.” – CEO Bipul Sinha
"We concluded fiscal 2026 with an exceptionally strong performance, highlighted by a record $115 million in net new subscription ARR and significant free cash flow. We look forward to continuing to execute in our large and growing market opportunity in fiscal 2027 and beyond.” – CFO Kiran Choudary
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