Rubrik cashes in on cyber-resilience

Rubrik has scored a record top line in its latest quarter, as more customers buy into its cyber-resilience strategy, now with an AI agent resilience angle.

Revenues in its final fy2026 quarter, ended January 31, 2026, were $377.7 million, 46 percent more than a year ago, and beating its high end $343 million outlook. There was a GAAP loss of $87 million, against last year’s $115 million loss. The full fy2026 numbers were upbeat with $1.32 billion in revenues, 48 percent higher year-on-year, exceeding its guidance, and a loss of $348.8 billion vs the year-ago $1.15 billion loss.

Bipul Sinha, Rubrik’s CEO, Chairman, and Co-Founder, said in the earnings call: "We ended the year with a spectacular Q4 that significantly exceeded our expectations. We accelerated net new subscription ARR growth to a record $115 million. For the full fiscal year, we generated tremendous free cash flow of about $238 million, which is more than 10x the free cash flow for the prior fiscal year. This is a clear indication that we are indeed laying the foundation of a long-term, highly profitable growth business.”

Financial summary

• Subscription ARR: $1.46 billion up 34 percent Y/Y
• Gross Margin: 81.5 percent compared to 77.4 percent a year ago
• Operating cash flow: $93 million vs year-ago $83.6 million
• Free cash flow: $70.1 million vs year-ago $75.2 million
• Cash, cash equivalents, restricted cash, and marketable securities: $1.68 billion vs prior quarter’s $1.6 billion

The signs of solid progress were much evident. Rubrik now has 2,805 customers with $100K+ in subscription ARR, 25 percent more than a year ago. It has a 120 percent average subscription dollar-based NRR (Net Retention Rate), exemplifying its land and expand strategy. 

CFO Kiran Choudary said: “We added over $115 million in net new subscription ARR, another record amount for Rubrik.” He added: “Expansion occurs through data growth in existing applications, securing more applications or identities or adding more security products. In fact, adoption of additional security products contributed over 45 percent of our subscription net retention rate in the quarter, up from 34 percent in the year ago period.”

He talked about the growth in greater-than-$100K ARR customer numbers, saying: “These large customers now represent 87 percent of our subscription ARR, an increase from 84 percent a year ago. Furthermore, we added a record 32 customers with subscription ARR of $1 million or more, driving over 50 percent growth in our over $1 million subscription base.

Sinha said: “Enterprise AI and agentic work disruptions are creating significant opportunities for us, and we are leaning into it. … We continue to deliver phenomenal results quarter after quarter because we are comprehensively winning against the competition and enabling enterprise AI acceleration. In fact, our competitive win rates have crossed 90 percent in Q4.”

He added: “We continue to accelerate our growth while our competition has stalled.” Er, maybe hold your horses Bipul. Commvault reported a 19 percent revenue jump to $314 million in January. That doesn’t sound like stalling. But perhaps he is referring to other competitors.

Asked about the AI opportunity, Sinha said: “Our customers want to adopt AI. They are concerned about the risk of AI. Because if the agents get compromised, then somebody can be controlling their business sitting in North Korea, and they don't want that. So they want agentic guardrails, … guardrails to be in real time.” He reckons AI resikience could be Rubrik's third $100 million business, following on from the first, data protection, and the second, identity resilience.

Next quarter’s revenue outlook is for more of the same; $366 million +/- $1 million, a 31.4 percent increase at the mid-point. The full fiscal 2027 outlook is $1.602 billion +/- $5 million, a more cautious 21.4 percent uplift at the mid-point.