Summary
Rubrik reported second quarter fiscal 2027 total revenue of $427.3 million, up 37.9% from $309.9 million a year earlier. Subscription ARR reached $1.66 billion as of July 31, 2026, up 33% year over year. Cloud ARR rose 39% to $1.48 billion. The company ended the quarter with 3,084 customers that have Subscription ARR of $100,000 or more, up 23% from 2,505. Net loss was $61.8 million, and diluted net loss per share narrowed to $0.30 from $0.49. Operating loss narrowed to $71.9 million from $94.5 million. Management raised guidance for all guided metrics for fiscal year 2027.
Profitability remains mixed. Gross profit was $335.1 million, up 36.1% from $246.3 million. GAAP gross margin slipped to 78.4% from 79.5%, a decline of 1.1 percentage points. Non-GAAP gross margin was 81.0%, compared with 81.6%. The operating margin was -16.8%, up from -30.5%, an increase of 13.7 percentage points. Subscription ARR contribution margin rose to 14.0% from 9.4%. Operating cash flow was $76.8 million, up 18.7%, while free cash flow was $65.7 million, compared with $57.5 million. Capital expenditures were $5.6 million, up 60.1%. Deferred revenue rose 31.4% to $1.18 billion, and remaining performance obligations increased 29.5% to $2.62 billion. For the first six months of fiscal 2027, revenue was $814.3 million, up 38.4% from $588.3 million, operating cash flow was $158.5 million, up 51.9% from $104.4 million, and net loss narrowed to $103.6 million from $198.0 million.
The quarter included several product and go-to-market moves. Rubrik launched Rubrik AI, an agentic-first layer across Rubrik Security Cloud and Rubrik Agent Cloud. It introduced Rubrik Agent Cloud for Anthropic's Claude Code and Project Hourglass, a global systems integrator alliance with Cognizant, Deloitte, HCLTech, NTT DATA and Wipro. Other releases included Autonomous Business Recovery for cloud applications, Rubrik Annapurna for unstructured data, and Rubrik Agent Identity. The company advanced Identity Resilience through the acquisition of Strata.io and new Identity Roll Forward and Identity Continuity capabilities. Rubrik was named a Leader in the 2026 Gartner Magic Quadrant for Backup and Data Protection Platforms for the seventh consecutive year, positioned furthest in Vision. It announced a 375 million ($500 million) UK investment and named London as its EMEA headquarters. It also appointed Rakefet Russak-Aminoach to its Board of Directors. Net new Subscription ARR grew 35% year over year, and adjusted net new Cloud ARR grew 20%. Revenue normalized for material rights increased 43% year over year.
Guidance points to continued growth. For the third quarter of fiscal 2027, Rubrik guides non-GAAP subscription ARR contribution margin of approximately 14%, non-GAAP net income per share of $0.07 to $0.09, and weighted-average shares outstanding of approximately 230 million. For the full fiscal year 2027, the company guides Subscription ARR between $1,880 million and $1,885 million, non-GAAP subscription ARR contribution margin of approximately 15.5%, non-GAAP net income per share of $0.47 to $0.53, weighted-average shares outstanding of approximately 228 million, and free cash flow of $323 million to $333 million. Risks include limited operating history, the growth rate of the market, the ability to manage and sustain growth, the ability to introduce new products, competition, the leadership transition in the global revenue organization, international expansion, successful use of AI, integration of acquisitions, and international conflict and global security concerns. Macroeconomic conditions, higher cost-consciousness around information technology budgets, supply chain constraints, global chip shortages, and higher server prices could affect customer purchasing decisions and deployment timelines. The company also expects benefits from material rights to continue to decline, and other gross margin compressed because of higher hardware costs. Rubrik continues to carry a substantial accumulated deficit.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2027 | Q1 FY2027 | QoQ | Q2 FY2026 | YoY |
|---|---|---|---|---|---|
| Revenue | $427.3M | $387.1M | +10.4% | $309.9M | +37.9% |
| Gross profit | $335.1M | $311.8M | +7.5% | $246.3M | +36.1% |
| Gross margin | 78.4% | 80.5% | -2.1 pp | 79.5% | -1.0 pp |
| Research & development | $126.9M | $114.3M | +11.0% | $92.1M | +37.7% |
| Sales & marketing | $224.5M | $193.1M | +16.2% | $182.0M | +23.3% |
| General & administrative | $55.7M | $57.0M | -2.2% | $66.7M | -16.4% |
| Total operating expenses | $407.0M | $364.4M | +11.7% | $340.8M | +19.4% |
| Operating income (loss) | -$71.9M | -$52.6M | -36.6% | -$94.5M | +23.9% |
| Operating margin | -16.8% | -13.6% | -3.2 pp | -30.5% | +13.7 pp |
| Net income (loss) | -$61.8M | -$41.9M | -47.6% | -$95.9M | +35.6% |
| Net margin | -14.5% | -10.8% | -3.7 pp | -31.0% | +16.5 pp |
| Diluted EPS | -$0.30 | -$0.21 | -$0.09 | -$0.49 | +$0.19 |
| Customers | 3,084 | 2,946 | +4.7% | 2,505 | +23.1% |
Risks
Reliance on a limited number of contract manufacturers and OEMs, notably Supermicro for Rubrik-branded Appliances, exposes Rubrik to global chip shortages and allocation constraints that have caused extended lead times and increased server prices. In FY2027 Q2, cost of other revenue rose 139% and other gross margin fell to 10% from 42%, while total gross margin declined 1.1 pp to 78.4%, and MD&A warns commercial accommodations could reduce margins.
Expanded AI risk factor covers generative and agentic AI use, including RAC and AI Products, with risks of IP infringement, uncertain copyright protection for AI-generated works, hallucinations, third-party model dependency, and compliance with the EU AI Act and state AI laws. MD&A notes RAC launched in February 2026 and is not expected to be the majority of revenue in fiscal 2027, but adoption or regulatory issues could delay customer adoption or add compliance costs.
Customers have no obligation to renew, may shorten terms or select lower editions, and average subscription dollar-based net retention rate was over 119% as of July 31, 2026, down from over 120% a year earlier. Growth in key customer metrics decelerated: Subscription ARR growth was 33% versus 36%, Cloud ARR growth was 39% versus 57%, and customers with $100,000 or more in Subscription ARR grew 23% versus 27%.
As a data security company, Rubrik is specifically targeted by threat actors and discloses past cyber incidents involving unauthorized access to certain systems and identified vulnerabilities. A compromise of its platform or customer data could cause severe reputational harm, regulatory investigations, litigation, and loss of customers.
Rubrik expects subscription revenue benefits from customers exercising or forfeiting Subscription Credits (material rights) to continue to decline, and says the CDM/RCDM-T to RSC transitions cause fluctuations and limit comparability. MD&A expects these benefits to significantly decline over fiscal 2027, which may limit subscription revenue growth.
MD&A highlights higher cost-consciousness around IT budgets, tariffs or trade restrictions, geopolitical issues, and supply chain constraints. These factors could cause sales cycles to fluctuate, delay customer purchases, or lead customers to pull software purchases forward to lock in hardware prices, making results volatile.
SaaS KPIs
All quarters →Average Subscription Dollar-Based Net Retention Rate
Cloud ARR
Subscription ARR
Free Cash Flow
Free Cash Flow Margin
Non-GAAP Gross Margin
Summary, forecast, risks and KPIs are extracted from Rubrik, Inc.'s SEC filings for Q2 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.