Rubrik — Second Quarter Fiscal 2027 Earnings Summary

Financial Performance

• Total revenue grew 38% year-over-year to $427.3 million in Q2 FY2027, compared to $309.9 million in Q2 FY2026; revenue normalized for material rights increased 43% year-over-year.
• Subscription revenue was $407.2 million, a 37% increase compared to $297.0 million in the prior year period.
• Subscription Annual Recurring Revenue (ARR) grew 33% year-over-year to $1.66 billion as of July 31, 2026, with net new Subscription ARR up 35% year-over-year.
• Cloud ARR grew 39% year-over-year to $1.48 billion as of July 31, 2026; adjusted net new Cloud ARR grew 20% year-over-year.
• GAAP net loss per share was $(0.30), improving from $(0.49) in the prior year period; Non-GAAP net income per share, diluted, was $0.20, compared to a loss of $(0.03) in the prior year.
• GAAP gross margin was 78.4% compared to 79.5% in the prior year; Non-GAAP gross margin was 81.0% compared to 81.6% in the prior year.
• Subscription ARR contribution margin improved to 14.0% from 9.4% in the prior year period.
• Cash flow from operations was $76.8 million compared to $64.7 million in the prior year; Free cash flow was $65.7 million compared to $57.5 million in the prior year.
• Operating cash flow margin was 18% and free cash flow margin was 15%.
• Cash, cash equivalents, and short-term investments totaled $1.75 billion as of July 31, 2026.
• Deferred revenue increased to $1.93 billion ($1.18 billion current, $0.75 billion noncurrent) from $1.85 billion ($1.07 billion current, $0.78 billion noncurrent) as of January 31, 2026.

Guidance and Future Outlook

• Rubrik raised guidance for all metrics for fiscal year 2027.
• Q3 FY2027 revenue guidance is $429 million to $431 million.
• Full FY2027 Subscription ARR guidance is between $1,880 million and $1,885 million.
• Full FY2027 revenue guidance is $1,685 million to $1,693 million.
• Full FY2027 Non-GAAP net income per share guidance is $0.47 to $0.53.
• Full FY2027 Free cash flow guidance is $323 million to $333 million.
• Full FY2027 Non-GAAP subscription ARR contribution margin is expected to be approximately 15.5%.

Business Segments and Product Lines

• Launched Rubrik AI, an agentic-first layer for autonomous action and recovery workflows.
• Launched Rubrik Agent Cloud for Anthropic's Claude Code and unveiled Project Hourglass, a GSI alliance with Cognizant, Deloitte, HCLTech, NTT DATA, and Wipro.
• Introduced Autonomous Business Recovery for cloud applications powered by the Preemptive Recovery Engine.
• Advanced Rubrik Annapurna, an AI-ready unstructured data layer for enterprise Data Intelligence platforms.
• Unveiled Rubrik Agent Identity, expanding Rubrik Agent Cloud with control access per tool call, operating alongside the SAGE governance framework.
• Advanced Rubrik Identity Resilience through the acquisition of Strata.io, introducing Identity Roll Forward and Identity Continuity capabilities.
• As of July 31, 2026, Rubrik had 3,084 customers with Subscription ARR of $100,000 or more, up 23% year-over-year.

Market and Competitive Landscape

• Named a Leader in the 2026 Gartner® Magic Quadrant™ for Backup and Data Protection Platforms for the seventh consecutive year, positioned furthest in Vision.
• Joined the Cloud Security Alliance's AI Resilience Center of Excellence as Lead Founding Partner.
• CEO Bipul Sinha stated that Mythos and frontier AI models have fundamentally changed the cybersecurity landscape, creating an opportunity for "Agentic Cyber Resilience."

Risks and Challenges

• Forward-looking statements note risks including limited operating history, market growth rate, ability to manage growth, introducing new products, competition from existing and new entrants, leadership transition in the global revenue organization, international expansion, successful AI integration, acquisition integration, and impacts from international conflict or global security concerns.
• Non-GAAP guidance reconciliation to GAAP is not available on a forward-looking basis due to uncertainty regarding future expenses, including stock-based compensation and debt issuance costs.

Management Commentary and Tone

• CFO Kiran Choudary stated that Subscription ARR growth, expanding contribution margins, and the raised outlook are a testament to confidence in solid execution at scale.
• Management expressed confidence entering the second half of fiscal year 2027 from a position of strength.
• CEO Bipul Sinha expressed confidence that the company is in the early innings of the AI acceleration opportunity.

Other Key Points

• Appointed Rakefet Russak-Aminoach to the Board of Directors.
• Announced a £375 million ($500 million) investment in the UK and named London as its EMEA headquarters.
• Acquired Strata.io to advance Identity Resilience capabilities.
• Conference call for Q2 FY2027 results and outlook was held on August 27, 2026.