Summary
Rubrik reported first quarter fiscal 2027 total revenue of $387.1 million, up 39.0% from the prior-year quarter. Gross profit rose to $311.8 million, up 43.0%, and GAAP gross margin was 80.5%, up 2.3 percentage points. The company still recorded an operating loss of $52.6 million, though the loss narrowed from the prior-year quarter. Operating margin was -13.6%, up 19.8 percentage points. Net loss was $41.9 million, or -$0.21 per diluted share, and that loss also narrowed from the prior-year quarter. The GAAP bottom line remains negative even as top-line growth and gross margin expanded.
Subscription ARR reached $1.57 billion, up 32% year-over-year. Cloud ARR was $1.39 billion, up 43%. Rubrik had 2,946 customers with subscription ARR of $100,000 or more, up 24% from the prior-year quarter. Average subscription dollar-based net retention rate was approximately 120%. Subscription ARR contribution margin was 13.2%, compared to 8.0% in the prior-year quarter. Non-GAAP gross margin was 82.9%, compared to 80.5% in the prior-year quarter. Non-GAAP operating income was $24.6 million, compared to a non-GAAP operating loss of $18.2 million in the prior-year quarter. Non-GAAP net income per share, diluted, was $0.16, compared to non-GAAP net loss per share, diluted, of $(0.15) in the prior-year quarter.
Operating cash flow was $81.7 million, up 106.0% from the prior-year quarter. Capital expenditures were $4.3 million, up 50.1%. Free cash flow, a non-GAAP measure, was $73.6 million. Deferred revenue was $1.12 billion, up 33.7% from the prior-year quarter. Remaining performance obligations were $2.44 billion, up 31.3%. On the product front, Rubrik announced access to Anthropic's Mythos Research Preview as part of Project Glasswing. It launched data protection for Google Workspace and Rubrik Agent Cloud for Google Cloud's Gemini Enterprise Agent Platform. It unveiled SAGE, its Semantic AI Governance Engine, and announced a Microsoft Defender integration. The company was selected as an American Hospital Association Preferred Cybersecurity Provider. It also launched rubrik.com community, a practitioner platform for data protection, identity security, cloud resilience, and AI operations.
Guidance points to continued growth. For the second quarter of fiscal 2027, the company issued revenue guidance along with a non-GAAP subscription ARR contribution margin of approximately 11-12%, non-GAAP net income per share of $0.03 to $0.05, and weighted-average shares outstanding of approximately 224 million. For the full fiscal year 2027, Rubrik guides subscription ARR between $1,854 million and $1,862 million, non-GAAP subscription ARR contribution margin of approximately 14%, non-GAAP net income per share of $0.25 to $0.35, weighted-average shares outstanding of approximately 228 million, and free cash flow of $293 million to $303 million. Revenue guidance for both the second quarter and the full fiscal year was raised along with the other guided metrics.
Management flagged several risks. Macroeconomic conditions and higher cost-consciousness around IT budgets have lengthened sales cycles. Global chip shortages and allocation constraints for compatible commodity servers have extended lead times and increased server prices, which can delay customer purchases or pull software purchases forward. Rubrik may provide commercial accommodations that could reduce margins. Subscription revenue is expected to benefit from material rights through fiscal 2027, but those benefits are expected to significantly decline sequentially, and subscription gross margin is expected to fluctuate. The company has a history of operating losses, expects to continue incurring operating losses, and says operating cash flows may fluctuate between positive and negative amounts. Other named risks include limited operating history, managing the leadership transition in the global revenue organization, competition, integrating acquisitions, and international conflict and global security concerns.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2027 | Q4 FY2026 | QoQ | Q1 FY2026 | YoY |
|---|---|---|---|---|---|
| Revenue | $387.1M | $377.7M | +2.5% | $278.5M | +39.0% |
| Gross profit | $311.8M | $308.0M | +1.2% | $218.0M | +43.0% |
| Gross margin | 80.5% | 81.5% | -1.0 pp | 78.3% | +2.3 pp |
| Research & development | $114.3M | $102.2M | +11.9% | $81.8M | +39.8% |
| Sales & marketing | $193.1M | $223.9M | -13.8% | $170.0M | +13.6% |
| General & administrative | $57.0M | $64.3M | -11.4% | $59.3M | -3.9% |
| Total operating expenses | $364.4M | $390.4M | -6.6% | $311.1M | +17.1% |
| Operating income (loss) | -$52.6M | -$82.4M | +36.1% | -$93.1M | +43.5% |
| Operating margin | -13.6% | -21.8% | +8.2 pp | -33.4% | +19.8 pp |
| Net income (loss) | -$41.9M | -$87.0M | +51.9% | -$102.1M | +59.0% |
| Net margin | -10.8% | -23.0% | +12.2 pp | -36.7% | +25.8 pp |
| Diluted EPS | -$0.21 | -$0.44 | +$0.23 | -$0.53 | +$0.32 |
| Customers | 2,946 | — | — | 2,381 | +23.7% |
| Net retention rate | 120.0% | 120.0% | ±0.0 pp | 120.0% | ±0.0 pp |
Risks
Revenue growth may not be indicative of future growth as Subscription ARR growth decelerated to 32% at April 30, 2026 from 38% at April 30, 2025 and Cloud ARR growth decelerated to 43% from 60%. Subscription revenue benefits from Subscription Credits are expected to significantly reduce sequentially in fiscal 2027.
RAC and other AI products are new and face uncertain adoption, especially among regulated customers, and could produce erroneous output or raise IP and AI regulatory risks under laws such as the EU AI Act and California, Utah, and Colorado frameworks. RAC only became commercially available in February 2026.
A large majority of secured enterprise data relies on Rubrik-branded Appliances built on servers supplied and designed by Supermicro, and global chip shortages, allocation constraints, tariffs, and geopolitical tensions have extended lead times and increased server prices, risking customer deployment delays and margin pressure.
Macroeconomic conditions, including higher cost-consciousness around IT budgets, inflation, tariffs, geopolitical issues, and supply chain constraints, have contributed to a lengthening of sales cycles and could delay or reduce customer purchases.
As a data security company, Rubrik is specifically targeted by threat actors and has experienced past cyber incidents involving unauthorized access to certain systems. A future compromise of its solutions could affect many customers and cause catastrophic reputational and financial harm.
The transition from subscription term-based licenses to SaaS subscriptions and remaining RSC migrations, including customer exercises or forfeitures of Subscription Credits, cause period-to-period revenue fluctuations and limit comparability; non-recurring material rights contributed approximately $8.5 million of subscription revenue in the quarter ended April 30, 2026.
Customers have no renewal obligation after terms generally of three years and may shorten terms, select lower editions, or purchase less. Average subscription dollar-based net retention rate was approximately 120% as of April 30, 2026, compared with over 120% as of April 30, 2025.
The data security market is intensely competitive, with larger competitors such as Dell-EMC, IBM, Commvault, Veeam, and Cohesity that have greater resources and are investing in AI, while high switching costs favor incumbent data management vendors.
RSC and other cloud services rely on GCP, Azure, and AWS for substantially all infrastructure. Outages, capacity limits, or unfavorable pricing could trigger service-level commitments, harm gross margins, and disrupt customer access.
Rubrik issued $1.15 billion of 0.00% convertible senior notes due 2030 and carries substantial leverage that could require cash flow for debt service, restrict strategic acquisitions, and increase vulnerability to adverse economic or industry developments.
SaaS KPIs
All quarters →Average Subscription Dollar-Based Net Retention Rate
Cloud ARR
Subscription ARR
Free Cash Flow
Free Cash Flow Margin
Customers with $100,000 or More in Subscription ARR
Summary, forecast, risks and KPIs are extracted from Rubrik, Inc.'s SEC filings for Q1 FY2027 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.