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Rubrik Q1 Earnings Beat Estimates, Revenues Up Y/Y, Shares Down
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Key Takeaways
Rubrik posted non-GAAP EPS of $0.16 vs a 3-cent loss estimate, a 633.3% surprise.
Rubrik revenues rose 39% to $387.07M, driven by subscription revenues up 41% to $374.2M.
Rubrik set Q2 revenues at $395M-$397M and raised FY27 outlook, despite material rights headwinds.
Rubrik, Inc. (RBRK - Free Report) delivered a strong first-quarter fiscal 2027, with non-GAAP earnings of 16 cents per share compared with the Zacks Consensus Estimate of a 3-cent loss, resulting in an earnings surprise of 633.3%.
Total revenues were $387.07 million, up 39% year over year and beating the consensus mark of $366 million by 5.71%. Results were supported by subscription momentum, with subscription ARR increasing 32% year over year to $1.57 billion.
Rubrik shares lost 3.1% at the time of writing this article.
RBRK’s Top-Line Details
Subscriptions (96.7% of total revenues) revenues increased 41% year over year to $374.2 million, beating the Zacks Consensus Estimate by 5.5%.
Rubrik also continued to work through the accounting dynamics tied to its cloud transition. Material rights contributed $8.5 million to first-quarter revenues, down from $13.4 million in the year-ago period. Excluding material rights, revenues increased 43% year over year.
Rubrik’s land-and-expand motion remained a key operating feature in the quarter. Subscription net retention was approximately 120%, supported by expansion across data growth in existing applications, broader coverage across applications and identities, and uptake of newer security products.
Enterprise penetration also improved. The company ended the quarter with 2,946 customers generating at least $100,000 in subscription ARR, up 24% year over year. Customers with $1 million or more in subscription ARR grew more than 50%. Rubrik also posted net new subscription ARR of $103 million, a first-quarter record, while cloud ARR rose 43% year over year to $1.39 billion and represented 89% of subscription ARR.
The company maintained an exceptional Net Promoter Score of more than 80, placing it among the top 1% of enterprise software companies globally.
RBRK’s Operating Details
RBRK posted expanding margins, reflecting the benefits of scale. Non-GAAP gross margin was 82.9% compared with 80.5% in the year-ago quarter, with management citing better efficiency in cloud hosting costs and improved productivity in customer support.
On a non-GAAP basis, research & development expenses increased 31.1% year over year to $81.3 million. Sales and marketing expenses were up 21.2% year over year to $176.8 million. General and administrative expenses increased 10.7% year over year to $38.2 million in the reported quarter.
Operating income totaled $24.6 million on a non-GAAP basis against the year-ago quarter’s operating loss of $18.2 million.
Rubrik also highlighted improved operating leverage through its subscription ARR contribution margin. The metric was 13.2% compared with 8% in the first quarter of fiscal 2026, reflecting higher sales, scale benefits and tighter cost management across the business.
Rubrik’s Balance Sheet and Cash Flow
As of April 30, 2026, cash and cash equivalents and short-term investments were $1.75 billion compared with $1.67 billion as of Jan. 31, 2026.
In the reported quarter, the company generated a cash flow from operations of $81.7 million compared with $93 million in the previous quarter.
As of Jan. 31, 2026, free cash flow was $73.6 million compared with $70 million in the prior period.
RBRK Initiates Q2 and FY27 Guidance
For the second quarter of fiscal 2027, Rubrik expects revenues of $395 million to $397 million and non-GAAP earnings of 3 to 5 cents per share. The company also guided to a non-GAAP subscription ARR contribution margin of approximately 11-12%.
For fiscal 2027, Rubrik raised its full-year outlook and now expects subscription ARR of $1.854 billion to $1.862 billion and revenues of $1.638 billion to $1.648 billion. The company guided to non-GAAP earnings of 25 to 35 cents per share and free cash flow of $293 million to $303 million, while noting that material rights revenues are expected to remain a headwind as the cloud transition nears completion.
Micron Technology shares have soared 249% in the year-to-date period. The company is scheduled to release third-quarter fiscal 2026 results on June 24.
Sandisk Corporation shares have returned 641.3% in the year-to-date period. The company is expected to report fourth-quarter fiscal 2026 results on Aug.13.
Amphenol shares have gained 8.7% in the year-to-date period. The company is expected to report second-quarter fiscal 2026 results on July 29.
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Rubrik Q1 Earnings Beat Estimates, Revenues Up Y/Y, Shares Down
Key Takeaways
Rubrik, Inc. (RBRK - Free Report) delivered a strong first-quarter fiscal 2027, with non-GAAP earnings of 16 cents per share compared with the Zacks Consensus Estimate of a 3-cent loss, resulting in an earnings surprise of 633.3%.
Total revenues were $387.07 million, up 39% year over year and beating the consensus mark of $366 million by 5.71%. Results were supported by subscription momentum, with subscription ARR increasing 32% year over year to $1.57 billion.
Rubrik shares lost 3.1% at the time of writing this article.
RBRK’s Top-Line Details
Subscriptions (96.7% of total revenues) revenues increased 41% year over year to $374.2 million, beating the Zacks Consensus Estimate by 5.5%.
Rubrik, Inc. Price, Consensus and EPS Surprise
Rubrik, Inc. price-consensus-eps-surprise-chart | Rubrik, Inc. Quote
Rubrik also continued to work through the accounting dynamics tied to its cloud transition. Material rights contributed $8.5 million to first-quarter revenues, down from $13.4 million in the year-ago period. Excluding material rights, revenues increased 43% year over year.
Rubrik’s land-and-expand motion remained a key operating feature in the quarter. Subscription net retention was approximately 120%, supported by expansion across data growth in existing applications, broader coverage across applications and identities, and uptake of newer security products.
Enterprise penetration also improved. The company ended the quarter with 2,946 customers generating at least $100,000 in subscription ARR, up 24% year over year. Customers with $1 million or more in subscription ARR grew more than 50%. Rubrik also posted net new subscription ARR of $103 million, a first-quarter record, while cloud ARR rose 43% year over year to $1.39 billion and represented 89% of subscription ARR.
The company maintained an exceptional Net Promoter Score of more than 80, placing it among the top 1% of enterprise software companies globally.
RBRK’s Operating Details
RBRK posted expanding margins, reflecting the benefits of scale. Non-GAAP gross margin was 82.9% compared with 80.5% in the year-ago quarter, with management citing better efficiency in cloud hosting costs and improved productivity in customer support.
On a non-GAAP basis, research & development expenses increased 31.1% year over year to $81.3 million. Sales and marketing expenses were up 21.2% year over year to $176.8 million. General and administrative expenses increased 10.7% year over year to $38.2 million in the reported quarter.
Operating income totaled $24.6 million on a non-GAAP basis against the year-ago quarter’s operating loss of $18.2 million.
Rubrik also highlighted improved operating leverage through its subscription ARR contribution margin. The metric was 13.2% compared with 8% in the first quarter of fiscal 2026, reflecting higher sales, scale benefits and tighter cost management across the business.
Rubrik’s Balance Sheet and Cash Flow
As of April 30, 2026, cash and cash equivalents and short-term investments were $1.75 billion compared with $1.67 billion as of Jan. 31, 2026.
In the reported quarter, the company generated a cash flow from operations of $81.7 million compared with $93 million in the previous quarter.
As of Jan. 31, 2026, free cash flow was $73.6 million compared with $70 million in the prior period.
RBRK Initiates Q2 and FY27 Guidance
For the second quarter of fiscal 2027, Rubrik expects revenues of $395 million to $397 million and non-GAAP earnings of 3 to 5 cents per share. The company also guided to a non-GAAP subscription ARR contribution margin of approximately 11-12%.
For fiscal 2027, Rubrik raised its full-year outlook and now expects subscription ARR of $1.854 billion to $1.862 billion and revenues of $1.638 billion to $1.648 billion. The company guided to non-GAAP earnings of 25 to 35 cents per share and free cash flow of $293 million to $303 million, while noting that material rights revenues are expected to remain a headwind as the cloud transition nears completion.
Rubrik’s Zacks Rank & Stocks to Consider
Currently, RBRK has a Zacks Rank #4 (Sell).
Micron Technology (MU - Free Report) , Sandisk Corporation (SNDK - Free Report) and Amphenol (APH - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.
MU and SNDK each sport a Zacks Rank #1 (Strong Buy), while APH carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron Technology shares have soared 249% in the year-to-date period. The company is scheduled to release third-quarter fiscal 2026 results on June 24.
Sandisk Corporation shares have returned 641.3% in the year-to-date period. The company is expected to report fourth-quarter fiscal 2026 results on Aug.13.
Amphenol shares have gained 8.7% in the year-to-date period. The company is expected to report second-quarter fiscal 2026 results on July 29.