Jun 6, 01:25 AM

Rubrik Reports Q1 Revenue Up 49% to $278.5M, Subscription ARR $1.18B, Raises FY2026 Guidance; Goldman Sachs PT $117

Rubrik Inc. reported its first-quarter fiscal year 2026 earnings with revenue of $278.5 million, representing a 49% year-over-year increase and exceeding estimates by approximately 7%. The company posted an adjusted EPS loss of $0.15, which was better than the estimated loss of $0.32 and reflected a 90.5% improvement year-over-year. Subscription revenue rose 54% year-over-year to $265.7 million, accounting for 95.4% of total revenue, while subscription annual recurring revenue (ARR) grew 38% year-over-year to $1.18 billion. Customers with subscription ARR exceeding $100,000 increased by 28% to 2,381. Gross margin improved substantially to 78.3% from 48.8% a year ago. Rubrik's net loss narrowed to $102.1 million, and free cash flow was $33 million, surpassing estimates of $26 million. The company provided guidance for the second quarter with revenue expected to be at least $282 million, up 37% year-over-year, and EPS projected at a loss of $0.34, slightly better than estimates. For the full fiscal year 2026, Rubrik raised its revenue guidance to $1.18 billion to $1.19 billion, above the prior estimate of $1.16 billion, and adjusted EPS guidance to a loss between $1.02 and $0.96, better than the estimated loss of $1.15. The company highlighted subscription ARR growth of 26% to 27% driven by identity resilience and platform expansion. Following the earnings release, Goldman Sachs raised its price target for Rubrik shares to $117 from $82 and reiterated a Buy rating, citing strong revenue growth, subscription ARR gains, and improved contribution margin. Rubrik's stock rose approximately 4.75% in reaction to the earnings report.

#Rubrik #Goldman Sachs #Buy

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