Rubrik Subscription ARR Reaches $1.66 Billion
The security software company raised fiscal 2027 revenue guidance to $1,685 million to $1,693 million after a second consecutive lift.
Rubrik, Inc. (RBRK), the Security and AI Operations company, reported subscription annual recurring revenue of $1.66 billion as of July 31, 2026, up 33% from a year earlier. That year-over-year growth followed 32% growth to $1.57 billion in the April quarter and 34% growth to $1.46 billion in the January quarter. Total revenue was $427.3 million, up 38% from $309.9 million a year earlier, after 39% growth to $387.1 million in the prior quarter and 46% growth to $377.7 million two quarters earlier.
Results exceeded all guided metrics, and guidance was raised for all guided metrics for fiscal year 2027. Full-year subscription ARR is now expected between $1,880 million and $1,885 million, and free cash flow between $323 million and $333 million, after Rubrik had already raised all guided metrics for fiscal 2027 in the prior quarter.
Subscription revenue was $407.2 million, up 37% from $297.0 million a year earlier, after 41% growth to $374.2 million in the prior quarter and 50% growth to $364.9 million two quarters earlier. Revenue normalized for material rights increased 43% year-over-year, matching the 43% normalized growth reported in both of the two preceding quarters. The quarter included $4.7 million in revenue from material rights, compared with $14.2 million a year earlier.
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 in the quarter. Net new Subscription ARR was up 35% year-over-year. Customers with Subscription ARR of $100,000 or more numbered 3,084, up 23% year-over-year, after 2,946 customers (up 24% year-over-year) in the April quarter and 2,805 (up 25% year-over-year) in the January quarter.
Subscription ARR contribution margin expanded to 14.0% from 13.2% in the prior quarter and 11.6% two quarters earlier. The increase reflected strong net new subscription ARR and improved operating leverage. GAAP gross margin compressed to 78.4% from 80.5% in the prior quarter and 81.5% two quarters earlier; non-GAAP gross margin fell to 81.0% from 82.9% and 83.7%.
Non-GAAP net income was $0.20 a share, diluted, up from $0.16 in the prior quarter and $0.04 two quarters earlier. GAAP net loss per share was $(0.30), compared with $(0.21) and $(0.43) in those earlier quarters. Cash flow from operations was $76.8 million and free cash flow was $65.7 million, down from $81.7 million and $73.6 million in the prior quarter and $93.0 million and $70.1 million two quarters earlier. Operating cash flow margin was 18% and free cash flow margin 15%, versus 21% and 19% in the April quarter. Cash, cash equivalents, and short-term investments were $1.75 billion as of July 31, 2026.
Chief Executive Officer Bipul Sinha said Mythos and frontier AI models have fundamentally changed the cybersecurity landscape and that Rubrik’s Agentic Cyber Resilience delivers machine-speed cyber recovery and autonomous runtime AI agent security. Chief Financial Officer Kiran Choudary said subscription ARR growth of 33%, expanding Subscription ARR contribution margins, and a raised outlook were a testament to execution at scale.
The company launched Rubrik AI, an agentic-first layer spanning Rubrik Security Cloud and Rubrik Agent Cloud, and Rubrik Agent Cloud for Anthropic’s Claude Code. It introduced Autonomous Business Recovery for cloud applications, advanced Rubrik Annapurna, and unveiled Rubrik Agent Identity. It also acquired Strata.io to advance Identity Resilience and announced a £375 million ($500 million) UK investment, naming London its EMEA headquarters. Rubrik was named a Leader in the 2026 Gartner Magic Quadrant for Backup and Data Protection Platforms for the seventh consecutive year.
For the third quarter of fiscal 2027, Rubrik guides to revenue of $429 million to $431 million, non-GAAP subscription ARR contribution margin of approximately 14%, and non-GAAP net income of $0.07 to $0.09 a share. Full-year non-GAAP subscription ARR contribution margin is guided at approximately 15.5%, and non-GAAP net income at $0.47 to $0.53 a share.