Rubrik shares slip after-hours despite strong earnings results and upbeat outlook – News

Shares in Rubrik Inc. edged down in late trading today despite the cloud data management and security company reporting strong results in its fiscal 2026 fourth quarter and providing an outlook ahead of expectations.

For the quarter that ended on Jan. 31, Rubrik reported adjusted earnings per share of four cents, reversing a loss of 18 cents per share in the same quarter of the previous fiscal year, on revenue of $377.7 million, up 46% year-over-year. Both figures were ahead of a loss of 11 cents per share and revenue of $350.6 million expected by analysts.

Subscription revenue was a key driver in Rubrik’s strong results, growing a highly impressive 50% year-over-year to $346.9 million. As of the end of the quarter, the company had 2,805 customers with subscription annual recurring revenue of $100,000 or more, up 25% year-over-year.

Cash flow from operations came in at $93 million, up from $83.6 million a year ago, and Rubrik ended the quarter with $1.68 billion in cash, cash equivalents and short-term investments on hand.

Business highlights in the quarter included the general availability of Rubrik Agent Cloud, a service that manages risk and accelerates enterprise artificial intelligence agent adoption. RAC integrates with Amazon Bedrock AgentCore and Microsoft Copilot Studio for unified visibility, governance and surgical rollback across agents.

Rubrik introduced Rubrik Security Cloud Sovereign, a service designed to allow customers to retain control over their data’s location and access in response to evolving regulatory landscapes and Intelligent Business Recovery for Microsoft 365, which offers automated, business-aware recovery for critical users and data across Exchange, OneDrive, SharePoint and Teams.

The company also announced Rubrik DevOps Protection to protect Azure DevOps and GitHub repositories and pipelines with a single, policy-driven service level agreement engine.

On the deal front, Rubrik entered the car racing space with a multiyear technology partnership with McLaren Racing. The deal sees Rubrik becoming an official partner of the McLaren Mastercard Formula 1 Team and the Arrow McLaren IndyCar Team.

For its full fiscal year 2026, Rubrik reported an adjusted loss per share of one cent, a serious improvement over a loss of $1.57 per share in the previous fiscal year, on revenue of $1.32 billion, up 48% year-over-year.

“The acceleration in net new subscription ARR growth in Q4 at our scale demonstrates that Rubrik is an increasingly critical platform for the AI era,” Chief Executive Bipul Sinha said in the company’s earnings release. “We are moving beyond traditional data security to ‘mission control’ for the AI enterprise – delivering risk and recovery critical to safely scale AI transformations.”

For its fiscal 2027 first quarter, Rubrik expects an adjusted loss of two to four cents a share and revenue of $365 million to $367 million, both figures at the midpoint ahead of a seven-cent loss and revenue of $349.5 million expected by analysts.

For the full year, the company issues a wide range of earnings — seven to 27 cents per share — on revenue of $1.597 million to $1.607 million, both also ahead at the midpoint compared to analyst expectations of seven cents per share and revenue of $1.58 billion.

The slight share price drop after hours may have been the result of Rubrik forecasting an adjusted loss in its fiscal 2027 first quarter, whereas the company had been profitable in the 2026 fourth quarter.

Dev Rishi, general manager of AI at Rubrik, spoke with theCUBE, News Media’s livestreaming studio, in December, when he discussed how enterprises are bracing for an AI risk reckoning and how Rubrik believes that control comes before scale:

Photo: Rubrik