Rubrik Q4 FY26 earnings call RBRK

Rubrik reported a spectacular Q4 FY26, significantly exceeding expectations with record net new subscription ARR of $115 million. Subscription ARR grew 34% year-over-year to $1.46 billion, and subscription revenue increased 50% year-over-year to $365 million. The company also achieved tremendous free cash flow of $238 million for the full fiscal year, representing more than a 10x increase from the prior year, demonstrating a strong foundation for long-term profitable growth.

Rubrik continues to win comprehensively against competitors, with competitive win rates crossing 90% in Q4. The company's platform, Rubrik Security Cloud, provides comprehensive cyber resilience across on-premises, sovereign, cloud, SaaS, and identity environments. This includes preemptive recovery capabilities that precalculate recovery points for data and identity, enabling rapid recovery from ransomware and identity-based attacks. This differentiation is driving market share gains while competitors have stalled.

The Identity line of business is experiencing rapid success, garnering budget from CISOs and expanding Rubrik's reach beyond traditional CIO/CTO personas. In Q4, the company announced protection for Okta Identity, making it the only platform to expand coverage to Okta, Active Directory, and Entra ID. The Identity business has grown to over 900 customers in just 3-4 quarters of selling, making it the fastest-growing product in the company's history.

Rubrik is positioning itself at the forefront of enterprise AI transformation with Rubrik Agent Cloud, designed to accelerate AI adoption through agent guardrail controls. This platform aims to provide dynamic monitoring, control, and remediation of agentic actions, addressing the risks associated with AI agents. The Predibase acquisition, which developed LLM fine-tuning and inference serving, provides the AI capabilities for this platform. Rubrik Agent Cloud was made generally available recently, with ongoing POCs across early AI adopters and Fortune 500 companies.

The company demonstrated significant operating leverage, with non-GAAP gross margin at 84% in Q4, up from 80% in the prior year. Subscription ARR contribution margin improved by approximately 950 basis points year-over-year to 12% for the last 12 months ended January 31. This improvement was driven by higher sales, scale benefits, and increased efficiency in cost management, contributing to the strong free cash flow generation.

Rubrik plans to continue strategic investments in two key areas: R&D to accelerate innovation in data, security, and AI markets, and go-to-market efforts targeting attractive regions and verticals. These investments will also focus on scaling newer innovations like Identity Resilience and Rubrik Agent Cloud. The company is confident in its FY27 outlook, fueled by the robust cyber resilience market and its differentiated technology platform.