TLDR
- Rubrik stock is sliding despite 39% revenue growth and stronger cash flow.
- RBRK collapses after hours as AI cybersecurity push expands revenue base.
- Rubrik reported strong ARR growth, but shares fell after earnings.
- RBRK declines with market weighting to AI growth, cash flow and guidance.
- Rubrik expands AI cyber tools while stock weakens after results.
Shares of Rubrik (RBRK) weakened after the company reported strong first-quarter growth and increased its focus on AI-driven cybersecurity. RBRK closed at $77.00, down 3.10%, before falling after hours to $75.61. The move came despite higher revenues, strong cash flow, and broader institutional adoption.
Rubrik reports strong growth in the first quarter
address It announced its first-quarter fiscal 2027 results for the period ending April 30, 2026. The cybersecurity company reported total revenue of $387.1 million, up 39% from $278.5 million a year earlier. Subscription revenues also increased by 41% to $374.2 million.
The company said annual recurring revenue for subscriptions reached $1.57 billion at the end of the quarter. This figure represents a growth of 32% year-on-year and shows the continued demand for its security system. Revenue excluding physical rights increased 43% sequentially.
Rubrik also improved profitability metrics during the quarter. GAAP gross margin increased to 80.5%, while non-GAAP gross margin increased to 82.9%. Free cash flow reached $73.6 million compared to $33.3 million last year.
AI cybersecurity efforts are expanding the business context
address It has positioned itself as a security operations and artificial intelligence company as companies face increasing cyber risks. The company focuses on data security, identity recovery, cloud resilience, and operational responsiveness. Hence, its recent results reflect the demand for cyber resilience tools across large enterprises.
During the quarter, Rubrik expanded several AI and cloud security products. Announced access to Anthropic’s Mythos Research Preview through Project Glasswing. It also launched Data Protection for Google Workspace, which covers Gmail and Google Drive recovery.
Rubrik also introduced Rubrik Agent Cloud for Google Cloud’s Gemini Enterprise Agent Platform. The product helps organizations detect AI agents, apply guardrails, and reverse malicious agent actions. Furthermore, the company unveiled SAGE, its AI governance engine for real-time agent controls.
Expectations point to further revenue growth
address Revenues for the second quarter of fiscal 2027 ranged between $395 million and $397 million. It also expects non-GAAP net income per share to be between $0.03 and $0.05. Additionally, it expects a subscription ARR contribution margin of approximately 11% to 12%.
For the full fiscal year, Rubrik expects revenue between $1.638 billion and $1.648 billion. The company also expects subscription ARR between $1.854 billion and $1.862 billion. Free cash flow guidance is between $293 million and $303 million.
The company ended the quarter with $1.75 billion in cash, cash equivalents and short-term investments. It also reported 2,946 customers with a subscription ARR of at least $100,000. However, the stock is still falling as the market reacts to the broader earnings update.
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