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RBRK
Earnings call · Jul 2026 (Q2 FY27)

Rubrik Q2 FY27 earnings call RBRK

Aug 27, 2026 Source

Executive summary

Rubrik Q2 FY27 — Accelerated Net New ARR and Strong Profitability

Rubrik delivered outstanding Q2 FY27 results, exceeding all guided metrics for the tenth consecutive quarter, driven by strong demand for agentic cyber resilience. The company accelerated net new subscription ARR and significantly improved profitability, leading to a raised full-year outlook. Management emphasized the critical role of AI in both threats and solutions, positioning Rubrik's platform for continued growth in data, identity, and AI security.

Highlights

5

  • Subscription ARR reached $1.66 billion, growing 33% year-over-year.

  • Net new subscription ARR accelerated to approximately $96 million in the second quarter.

  • Subscription revenue grew 37% year-over-year to $407 million.

  • Subscription ARR contribution margin improved by 460 basis points year-over-year to 14% (LTM).

  • Generated $66 million in free cash flow this quarter.

Concerns

3

  • AI speed breaches and agentic overreach

  • Vulnerability chaining and rapid intrusion-to-breach

  • Identity as the weakest link in cyberattacks

Guidance & targets

CategoryTargetConfidence
Revenue
$429M to $431M
high materiality
High
Non-GAAP subscription ARR contribution margin
approximately 14%
medium materiality
High
Non-GAAP earnings per share
$0.07 to $0.09
high materiality
High
Subscription ARR
$1.88 billion to $1.885 billion
high materiality
High
Total Revenue
$1.685 billion to $1.693 billion
high materiality
High
Non-GAAP subscription ARR contribution margin
approximately 15.5%
medium materiality
High
Non-GAAP earnings per share
$0.47 to $0.53
high materiality
High
Free Cash Flow
$323 million to $333 million
high materiality
High
Material rights contribution to revenue
approximately $2 million to $3 million
low materiality
High
Material rights contribution to revenue
approximately $18 million
low materiality
High

RBRK operating KPIs by quarter

RBRK operating KPIs stated on its earnings calls, by fiscal quarter
KPI Jan 2026 Q4 FY26 Apr 2026 Q1 FY27This call Jul 2026 Q2 FY27Change vs prior quarter
Annual recurring revenue (ARR) Subscription
$1.46B First, subscription ARR reached $1.46 billion, growing 34% year-over-year. Source transcript
$1.57B First, subscription ARR reached $1.57 billion, growing 32% year-over-year. Source transcript
$1.66B First, subscription ARR reached $1.66 billion, growing 33% year-over-year. Source transcript
+5.7%
Net revenue retention rate Subscription
120%+ Third, our subscription NRR remained strong, once again above 120%. Source transcript
~120% Third, our subscription NRR remained strong at approximately 120%. Source transcript
119%+ Fourth, our subscription NRR remained strong at over 119%. Source 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 transcript
2,946 Fourth, customers with $100,000 or more in subscription ARR reached 2,946 growing 24% year-over-year. Source transcript
3,084 Customers with 100,000 or more in subscription ARR reached 3,084, growing 23% year-over-year. Source 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 transcript
$1.39B Continued adoption of Rubrik Security Cloud resulted in $1.39 billion of cloud ARR up 43%. Source transcript
—+7.8%

Operating figures the company states on every call, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Subscription ARR $1.66 billion Q2 FY27 end

up 33% YoY

Net new subscription ARR approximately $96 million Q2 FY27

accelerated

Product announcements

ProductTypeDetails
Rubrik Flexlaunch
Identity Roll Forwardupdate
Rubrik Agent Identitylaunch

Deals & partnerships

U.S. state government agency New logo deal for enterprise and M365 protection

Displaced a legacy incumbent due to concerns around cyber recovery time. Chose Rubrik for reliability, compliance fit, and speed of cyber recovery.

Global 2000 financial services customer New customer for full data environment protection

Displaced a legacy vendor and outcompeted a NuGen competitor. Selected Rubrik for cyber resilience capabilities across on-premises, data centers, cloud, M365, unstructured data, and identity, also solving tool consolidation needs.

Large U.S. health care system Expansion deal using Rubrik Flex

Extended Rubrik's platform beyond its existing on-premises footprint to cover M365, cloud, and identity data under a single enterprise agreement. Won against cloud-native backup tools, citing single pane of glass as deciding factor.

Large online fashion retailer Identity Resilience cloud data and SaaS protection deal

Displaced incumbent native backup tools and beat out a point solution competitor. Chose Rubrik for mission-critical applications across M365, Active Directory, and its e-commerce platform in Azure, citing immutable backups and speed of clean recovery.

Long-time platform customer (large retailer) Expansion to Rubrik Agent Cloud (RAC)

Customer scaling AI coding agents across engineering expanded to RAC, extending the platform for agentic governance. Noted appeal of agent rewind to undo destructive actions and SAGE to secure agents in real time with AI.

Existing international customer Largest international identity deal in Rubrik's history

Customer required recovery in hours, while their current solution took 7 days. Rubrik Identity Resilience provided the solution for this high-priority CIO/CISO level deal.

Risks & headwinds

AI speed breaches and agentic overreach Current and ongoing

AI agents can attack at machine speed and increasingly compromise enterprise agents, resulting in massive insider attacks.

Mitigation:Agentic cyber resilience, preemptive recovery engine, AI speed recovery, Rubrik Agent Cloud for security and governance of AI agents.

Vulnerability chaining and rapid intrusion-to-breach Current and ongoing

Mythos and Frontier AI models make low-priority vulnerabilities into P0 problems, with no real-time between intrusion and breach, making traditional prevention/detection insufficient.

Mitigation:Fast recovery, machine speed recovery, patching without human intervention, preemptive recovery engine for AI speed recovery.

Identity as the weakest link in cyberattacks Current and ongoing

Hackers are logging in rather than breaking in, destroying identity systems, or maintaining long-term persistence, making identity systems ground zero for cyber incidents.

Mitigation:Identity Resilience to understand misconfigured identity, identity recovery after attacks, and the ability to roll back/roll forward identity systems to a clean state.

What to watch in Q3 FY27

Net new subscription ARR growth

Q3 FY27
Current ~$96M in Q2 FY27 (accelerated)
Target Continued strong performance, especially given implied H2 deceleration in guidance

Why it matters

Key indicator of demand durability and execution against conservative guidance.

We added approximately $96 million in net new subscription ARR in the quarter. We did not see any material impact to our subscription ARR from rising hardware costs or supply constraints.

Q&A highlights

Clarify the ARR contribution from the Strata Identity deal in the reported quarter and in the guidance.

Kiran Choudary clarified that there was zero ARR contribution from the Strata acquisition in Q2 FY27 and zero is assumed in the guidance for the full fiscal year.

“I'll just clarify here that most recent reported quarter, Q2, there was 0 ARR from Strata acquisition and also clarify that in the guidance we provided, there's assumption of 0 ARR as well. So both 0 in the quarter, 0 for the year.”

asked by Saket Kalia · answered by Kiran Choudary

2 min read 6 chapters

Detailed narrative

AI and Agentic Cyber Resilience

Rubrik highlights AI as a transformative technology creating new risks, with AI agents attacking at machine speed. The company positions its platform, Rubrik Security Cloud and Rubrik Agent Cloud, as essential for 'agentic cyber resilience' to combat AI-orchestrated attacks and agentic overreach. This new approach emphasizes preemptive risk assessment, real-time guardrails, and AI-speed recovery, moving beyond legacy prevention and detection methods.

Platform Strategy and Complementary Network Effects

Rubrik emphasizes its unified platform approach, where additional products (data protection, identity resilience, agent security) enhance the value of existing ones. This strategy drives customer consolidation away from point solutions and contributes to high competitive win rates. The platform's architectural advantage, combining time series data and metadata, allows for continuous precalculation of clean recovery points across diverse environments.

Rubrik Flex Adoption

The company introduced Rubrik Flex, a unified platform contract vehicle, and reported early success with several deals. An example includes a large U.S. healthcare system extending its platform beyond existing on-premises footprint to cover M365, cloud, and identity data under a single enterprise agreement, citing a single pane of glass for true cyber resilience as the deciding factor.

Identity Resilience Growth

Identity Resilience is noted as one of the fastest-growing product lines, addressing the weakest link in cyberattacks. Recent innovations like 'identity roll forward' provide the ability to recover identity systems to a clean current state without losing legitimate business progress. The acquisition of Strata Identity accelerated orchestration capabilities, making the platform more complete in this area.

Rubrik Agent Cloud (RAC) Momentum

RAC, built on pillars of continuous monitoring, dynamic runtime security (Semantic AI Governance Engine - SAGE), and agent rewind, is gaining traction. The company reported over 15 paying RAC customers, with proof-of-concept engagements converting to production deployments. RAC aims to provide comprehensive agent security and governance, including agent identity, to help customers securely adopt AI agents.

Non-Cloud Business Growth

Management noted a growing non-cloud business, particularly in regulated industries, government agencies, and sovereign deployments. This trend is driven by geopolitics and concerns over digital infrastructure security, where customers prefer to contain data and infrastructure within their own sovereign realm. This complements the cloud business and contributes to overall subscription ARR growth.

AI-generated summary of the company's earnings call. Not investment advice.