With AI making everything more dangerous, does cyber resilience become a bigger line item and shift Rubrik's role from insurance to something more central to how companies run?

Cybersecurity strategy has shifted to cyber resilience, accelerated by AI models like Mythos, which make detection difficult. Rubrik's Preemptive Recovery Engine enables AI-speed recovery, which is critical. Cyber resilience is now the only viable strategy for the AI era, making Rubrik more central to operations. “Cyber security strategy has moved from being a prevention detection-oriented strategy to squarely now as a cyber resilience strategy.”

Why does Rubrik stand to be a leader in the AI control plane category against competitors like ServiceNow, especially if agentic control is seen as a CMDB problem?

Rubrik offers a comprehensive platform for agentic security and resilience, covering monitoring, identity posture, real-time security guardrails, and 'Agent Rewind' to undo undesirable actions. This end-to-end solution is unmatched by point solutions or competitors focusing on single aspects like observability or CMDB. “Rubrik delivers monitoring, guardrail and security for run time as well as Agent Rewind. We have the most comprehensive solution in the marketplace unmatched by any other vendor.”

The Q1 results showed a different mix than expected, with on-premise performing better and cloud slightly below. What are the dynamics of this mix and how should it be viewed going forward?

Rubrik is pleased with both cloud and non-cloud performance. Cloud ARR is now 89% of subscription ARR, nearing the end of the cloud transition. Non-cloud ARR grew on a dollar basis as migrations are concluding. The non-cloud portion is expected to stabilize and then grow, driven by demand from federal agencies, government, and regulated industries, potentially also by sovereign infrastructure trends. “If you actually back out the migrations, then we actually grew Cloud ARR a little bit faster than subscription ARR. So it was a very strong quarter. At the same time, non-cloud ARR also grew.”

RBRK

Rubrik (RBRK) Q1 FY27 earnings call: guidance and Q&A

Earnings call· Apr 2026 (Q1 FY27)· Information Technology· Jun 4, 2026

Source: earnings call transcript

Executive summary

Rubrik Q1 FY27 — Strong Subscription ARR Growth and AI Resilience Momentum

Rubrik delivered a strong Q1 FY27, exceeding all guided metrics, driven by robust demand for cyber resilience in the AI era. The company is leveraging its platform across data, identity, and AI to address evolving threats, with particular momentum in its Identity business and early traction for Rubrik Agent Cloud. Management raised its full-year outlook, confident in its differentiated technology and execution.

Highlights

Subscription ARR reached $1.57 billion, growing 32% year-over-year.
Net new subscription ARR was a record $103 million for Q1.
Subscription revenue grew 41% year-over-year to $374 million.
Subscription NRR remained strong at approximately 120%.
Free cash flow increased to $74 million, up from $33 million in Q1 FY26.

Concerns

Material rights related to cloud transformation will represent a meaningful headwind to reported revenue growth in FY27, contributing only ~$17 million for the full year compared to prior periods.

Guidance & targets

Category	Target	Timeline	Confidence
Q2 FY27 Revenue	$395 million to $397 million high materiality	Q2 · FY27	High
Q2 FY27 Revenue Growth	27% to 28% high materiality	Q2 · FY27	High
Q2 FY27 Material Rights Revenue Contribution	$3 million to $4 million medium materiality	Q2 · FY27	High
Q2 FY27 Non-GAAP Subscription ARR Contribution Margin	11% to 12% medium materiality	Q2 · FY27	High
Q2 FY27 Non-GAAP EPS	$0.03 to $0.05 high materiality	Q2 · FY27	High
FY27 Subscription ARR	$1.854 billion to $1.862 billion high materiality	Full Year FY27	High
FY27 Subscription ARR Growth	approximately 27% high materiality	Full Year FY27	High
FY27 Total Revenue	$1.638 billion to $1.648 billion high materiality	Full Year FY27	High
FY27 Material Rights Revenue Contribution	approximately $17 million medium materiality	Full Year FY27	High
FY27 Non-GAAP Subscription ARR Contribution Margin	approximately 14% medium materiality	Full Year FY27	High
FY27 Non-GAAP EPS	$0.25 to $0.35 high materiality	Full Year FY27	High
FY27 Free Cash Flow	$293 million to $303 million high materiality	Full Year FY27	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Americas Revenue from the Americas region.	$279 million	38%	—	—
Outside Americas Revenue from regions outside of the Americas.	$108 million	43%	—	—

RBRK operating KPIs by quarter

RBRK operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Jan 2026 Q4 FY26	This call Apr 2026 Q1 FY27	Jul 2026 Q2 FY27	Change vs prior quarter
Annual recurring revenue (ARR) Subscription	$1.46B First, subscription ARR reached $1.46 billion, growing 34% year-over-year. Source: earnings call transcript	$1.57B First, subscription ARR reached $1.57 billion, growing 32% year-over-year. Source: earnings call transcript	$1.66B First, subscription ARR reached $1.66 billion, growing 33% year-over-year. Source: earnings call transcript	+5.7%
Net revenue retention rate Subscription	120%+ Third, our subscription NRR remained strong, once again above 120%. Source: earnings call transcript	~120% Third, our subscription NRR remained strong at approximately 120%. Source: earnings call transcript	119%+ Fourth, our subscription NRR remained strong at over 119%. Source: earnings call transcript	—
Customers above an annual spend threshold Subscription ARR of $100,000 or more	2,805 Fourth, customers with $100,000 or more in subscription ARR reached 2,805, growing 25% year-over-year. Source: earnings call transcript	2,946 Fourth, customers with $100,000 or more in subscription ARR reached 2,946 growing 24% year-over-year. Source: earnings call transcript	3,084 Customers with 100,000 or more in subscription ARR reached 3,084, growing 23% year-over-year. Source: earnings call transcript	+4.7%
Annual recurring revenue (ARR) Cloud	$1.29B Continued adoption of Rubrik Security Cloud resulted in $1.29 billion of cloud ARR up 48%. Source: earnings call transcript	$1.39B Continued adoption of Rubrik Security Cloud resulted in $1.39 billion of cloud ARR up 43%. Source: earnings call transcript	—	+7.8%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Deals & partnerships

Anthropic partnership

Rubrik joined Anthropic's Project Glasswing and received early access to the Claude Mythos research preview to ensure better service for customers when cyber breaches occur.

Risks & headwinds

Material rights revenue headwind FY27

approximately $17 million contribution to FY27 revenue

Mitigation:Subscription ARR is the primary metric to evaluate business performance as it is not impacted by these accounting dynamics.

AI agents introducing increased risk ongoing

10x more damage in 1/10 of the time

Mitigation:Rubrik Agent Cloud provides comprehensive AI operations platform for dynamic monitoring, control, and remediation of agentic actions, including 'Agent Rewind'.

Identity-based attacks ongoing

#1 attack vector

Mitigation:Rubrik's Identity Resilience products provide protection and recovery for identity, extending cyber resilience across data and identity simultaneously.

Geopolitical trends driving non-cloud solutions future

potential increase in non-cloud portion

Mitigation:Rubrik's non-cloud business is stabilizing and expected to grow, catering to sovereign infrastructure and regulated industries.

Q&A highlights

How are hardware market dynamics impacting customer buying behavior in the cyber resilience market, given it's a key question this quarter?

Rubrik, as a software company, has no material impact from hardware market dynamics. Enterprise data protection is a smaller part of the business, with comprehensive solutions across cloud, SaaS, identity, and M365. Sales cycles have remained stable.

“Rubrik has no real impact from the hardware market dynamics. As you might reckon, Rubrik is a software company.”

asked by Saket Kalia · answered by Bipul Sinha

2 min read 6 chapters

Detailed narrative

Cyber Resilience in the AI Era

Rubrik emphasizes that cyber resilience is now the most fundamental cybersecurity requirement, especially with the emergence of AI agents like Mythos, which can intrude, breach, and encrypt at machine speed. The company's Preemptive Recovery Engine is designed to continuously pre-calculate clean recovery points across data and identity, enabling AI-speed recovery when breaches inevitably occur.

This proactive approach is critical as traditional prevention and detection methods are becoming insufficient against advanced AI-powered attacks.

Platform Differentiation and Market Consolidation

Rubrik positions itself as a multi-product company built on a unique and differentiated platform that solves critical problems across data, identity, and AI. This platform underpins two solution suites: Rubrik Security Cloud (RSC) for cyber resilience and Rubrik Agent Cloud for trusted AI transformation.

The company's architectural advantage allows for comprehensive cyber resilience across on-premises, sovereign, cloud, SaaS, and identity environments, leading to customer wins by displacing legacy incumbents and consolidating fragmented security solutions into a single unified platform.

Momentum in Identity Resilience

The Identity business is rapidly gaining traction, growing 38% sequentially quarter-over-quarter to over $50 million in subscription ARR in Q1 FY27. This growth is driven by the increasing threat of identity-based attacks, which have become the number one attack vector.

Identity Resilience extends Rubrik's reach beyond traditional CIO/CTO personas to CISOs, addressing critical needs like Entra ID and Okta protection, as demonstrated by a large U.S. agricultural organization expanding into this solution after a ransomware attack.

Rubrik Agent Cloud for AI Transformation

Rubrik Agent Cloud is presented as a comprehensive AI operations platform designed to dynamically monitor, control, and remediate agentic actions, addressing risks like data leakage and unauthorized actions by AI agents. The Predibase acquisition provides the AI capabilities for the Semantic AI Governance Engine (SAGE), enabling real-time guardrails and an 'Agent Rewind' feature to undo destructive actions.

Early POCs are converting to production deployments, with a U.S. financial services firm committing to full production deployment across AWS Bedrock and Microsoft Copilot.

Go-to-Market Strategy and Financial Discipline

Rubrik employs a 'lateral team' to incubate and scale new products like Rubrik Agent Cloud, targeting new use cases and customer bases. The company is committed to operational investments in R&D to accelerate innovation and in go-to-market efforts, specifically targeting regions and verticals with attractive ROI.

This approach balances growth with improved efficiency, as evidenced by strong free cash flow generation and improved subscription ARR contribution margins, demonstrating discipline in creating a long-term profitable growth business.

Hardware Market Dynamics and Discretionary Spending

Management reiterated that hardware market dynamics have no material impact on Rubrik's software-centric business, as customers either consume cloud services with long-term contracts or utilize existing data center configurations. Cyber resilience is framed as a non-discretionary purchase and a top business risk for enterprises, a prerequisite for AI adoption.

This strategic positioning reinforces the company's confidence in its market position and ability to execute, even amidst broader market concerns.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.