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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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
