Rubrik, Inc.

In Q2 fiscal 2027, subscription ARR was $1.66 billion, up 33% year over year, with net new subscription ARR of approximately $96 million. Subscription revenue was $407.2 million, up 37%, and total revenue was $427.3 million, up 38%; revenue normalized for material rights increased 43%. Non-GAAP gross margin was 81% versus 81.6% a year ago, and subscription ARR contribution margin improved to 14% from 9.4%, up 460 basis points. Free cash flow was $65.7 million versus $57.5 million in Q2 fiscal 2026. For Q3, Rubrik guided to revenue of $429 million-$431 million, non-GAAP subscription ARR contribution margin of about 14%, and non-GAAP EPS of $0.07-$0.09. For full-year fiscal 2027, guidance calls for subscription ARR of $1.88 billion-$1.885 billion, total revenue of $1.685 billion-$1.693 billion, non-GAAP subscription ARR contribution margin of about 15.5%, non-GAAP EPS of $0.47-$0.53, and free cash flow of $323 million-$333 million.

Bipul Sinha framed the quarter as evidence that Rubrik’s platform is gaining relevance as AI changes the cybersecurity problem set. He argued that AI agents create both machine-speed attacks and agentic overreach, and said Rubrik’s response is a broad platform spanning data, identity, and AI governance through Rubrik Security Cloud and Rubrik Agent Cloud. His tone was confident and expansive, emphasizing “early innings,” rising customer consolidation, and the idea that Rubrik is positioned for a larger opportunity than what has been captured so far.

Kiran Choudary emphasized steady execution and reiterated that the company did not see any material impact from rising hardware costs or supply constraints. He pointed to subscription ARR of $1.66 billion, 88% of ARR coming from customers with $100,000+ in ARR, and $1.75 billion in cash, cash equivalents and short-term investments versus $1.13 billion in convertible debt. He also highlighted improving operating leverage, with subscription ARR contribution margin at 14% for the last 12 months and free cash flow of $65.7 million, while guiding to about 15.5% contribution margin and $323 million-$333 million of free cash flow for the full year.

Analysts focused on the apparent step-down in implied net new ARR growth in the back half, the mix between cloud and non-cloud growth, the role of Strata, and early traction in Rubrik Agent Cloud. Management said Strata contributed 0 ARR in Q2 and is assumed to contribute 0 in guidance, and they stressed that the company is run on an annual basis, not quarter-to-quarter, with confidence in the pipeline and a raised full-year outlook. On RAC, management said there are more than 15 paying customers, that competition exists from point-solution vendors, and that the product is still early with minimal ARR assumption this year; on identity and non-cloud, they said demand is growing in regulated, sovereign, and government environments.