Rubrik NYSE: RBRK reported what executives described as a record first quarter of fiscal 2027, exceeding its guided metrics and raising its full-year outlook as the cybersecurity company pointed to growing demand for cyber resilience in an AI-driven threat environment.
Chief Executive Officer Bipul Sinha said subscription annual recurring revenue reached $1.57 billion, up 32% year over year. Subscription revenue rose 41% to $374 million, while total revenue increased 39% to $387 million. Rubrik generated $74 million in free cash flow during the quarter, compared with $33 million in the year-ago period.
“We are off to a strong start to fiscal 2027 with a record Q1,” Sinha said. “I'm proud to announce that we have once again exceeded all guided metrics across top line and profitability.”
Subscription ARR and enterprise customer base expand
Chief Financial Officer Kiran Choudary said Rubrik added $103 million in net new subscription ARR during the quarter, calling it a record for a first quarter. Cloud ARR reached $1.39 billion, up 43%, and represented 89% of subscription ARR as the company nears the end of its cloud transition.
Rubrik’s subscription net retention rate remained approximately 120%, reflecting what Choudary described as expansion through data growth, additional applications and identities, new security products and Rubrik Agent Cloud. The company ended the quarter with 2,946 customers generating $100,000 or more in subscription ARR, up 24%. Customers with $1 million or more in subscription ARR grew more than 50%.
Choudary said larger customers now account for 88% of subscription ARR, “continuing to grow as we become an increasingly strategic partner to our enterprise customers.”
Revenue from the Americas increased 38% to $279 million, while revenue outside the Americas grew 43% to $108 million. Non-GAAP gross margin was 82.9%, up from 80.5% a year earlier. Rubrik’s subscription ARR contribution margin improved to 13.2% for the trailing 12 months ended April 30, compared with 8% in the prior-year period.
AI threats drive cyber resilience message
Sinha framed the company’s results and outlook around what he called a “new era of cybersecurity,” in which AI agents can attack at machine speed and where prevention and detection are no longer sufficient. He repeatedly referenced “Mythos” and frontier AI models as catalysts for customer conversations around resilience and recovery.
“Cyber resilience is now the most fundamental cybersecurity requirement for the AI era,” Sinha said. He added that Rubrik has seen increased engagement with CIOs and CISOs, saying during the Q&A that he personally held 140 CIO and CISO meetings in the quarter, up 50% sequentially.
Sinha highlighted Rubrik’s Preemptive Recovery Engine, which he said continuously pre-calculates clean recovery points across data and identity before an attack. He said the technology is intended to help customers recover at “AI speed” when breaches occur.
Rubrik also recently joined Anthropic’s Project Glasswing and received early access to the Claude Mythos research preview, which Sinha said supports the company’s work in “agentic cyber resilience.”
Identity and Agent Cloud gain traction
Rubrik executives emphasized the company’s expansion beyond its original data protection roots into identity resilience and AI governance. Sinha said Rubrik’s identity business grew 38% sequentially to more than $50 million in subscription ARR during the first quarter.
He cited a large U.S. agricultural organization that expanded into Rubrik Identity Resilience after a ransomware attack on its Active Directory environment caused operational downtime and financial loss. The customer added Entra ID and Okta protection, Sinha said.
Rubrik Agent Cloud was also a major focus of the call. Sinha described it as an AI operations platform designed to monitor, control and remediate agentic actions. He said the company’s Predibase acquisition underpins its Semantic AI Governance Engine, or SAGE, which he called an AI governance engine built to guardrail autonomous agents in real time.
Sinha said a U.S. financial services firm moved from experimentation to production deployment of Rubrik Agent Cloud across AWS Bedrock and Microsoft Copilot. The customer selected the product for visibility and monitoring of AI agents, policy-based guardrails and the ability to rewind and remediate agent actions, he said.
During the Q&A, Sinha said customers are looking for a platform rather than point solutions to secure AI agents. He said Rubrik Agent Cloud combines monitoring, runtime security guardrails and “Agent Rewind,” which he described as the ability to undo undesirable agent actions.
Company raises fiscal 2027 outlook
Rubrik raised its full-year outlook, citing demand for cyber resilience and its newer identity and AI offerings. For the second quarter, the company expects revenue of $395 million to $397 million, representing growth of 27% to 28%. It expects non-GAAP subscription ARR contribution margin of 11% to 12% and non-GAAP earnings per share of $0.03 to $0.05.
For fiscal 2027, Rubrik now expects:
- Subscription ARR of $1.854 billion to $1.862 billion, up approximately 27% year over year.
- Total revenue of $1.638 billion to $1.648 billion.
- Material rights related to its cloud transformation to contribute about $17 million to revenue.
- Non-GAAP subscription ARR contribution margin of approximately 14%.
- Non-GAAP earnings per share of $0.25 to $0.35.
- Free cash flow of $293 million to $303 million.
Choudary said the company ended the quarter with $1.7 billion in cash equivalents, restricted cash and marketable securities, along with $1.1 billion in convertible debt.
Executives address hardware costs and sales execution
Analysts asked about rising hardware costs and whether they could affect customer buying behavior. Sinha said Rubrik has “no real impact” from hardware market dynamics because it is a software company and because its business now spans cloud, SaaS, identity, Microsoft 365 and other solutions in addition to enterprise data protection.
Choudary added that sales cycles have remained stable and that Rubrik did not see a material impact from hardware costs or supply constraints.
On go-to-market execution, Sinha said recent sales leadership changes had settled well and that Rubrik would remain opportunistic in adding sales capacity where it sees attractive returns. He said the company is balancing growth with discipline rather than pursuing “growth at all cost.”
Sinha closed the call by saying Rubrik is evaluating both organic and inorganic opportunities to accelerate its platform roadmap, while reiterating that demand for resilience against AI attacks and compromised agents “has never been higher.”
About Rubrik NYSE: RBRK
Rubrik, Inc is a cloud data management and security company that delivers a unified platform for data protection, disaster recovery, compliance and intelligent data governance. Its flagship offering, the Rubrik Security Cloud, enables organizations to automate backup and recovery workflows across on-premises, edge and multi-cloud environments. By combining policy-driven orchestration with real-time threat detection, Rubrik helps clients guard against ransomware, ensure business continuity and enforce data retention requirements.
The company's platform supports a range of services including backup and restore, long-term data archiving, replication, and disaster recovery as a service (DRaaS).
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