Rubrik Inc (RBRK) Stock Forecast & Price Target

Rubrik Inc. demonstrated robust financial growth, with subscription annual recurring revenue (ARR) rising 36% year-over-year to $1.252 billion, surpassing analyst expectations of $1.230 billion, indicating strong market momentum. The company expanded its customer base, now serving 2,505 clients who contribute over $100,000 in ARR, up from 2,381 in the previous period, further establishing its position as a strategic partner for enterprises. Additionally, Rubrik added approximately $71 million in net new subscription ARR, reflecting a year-over-year increase of 13% and a consistent subscription net revenue retention rate of over 120%, showcasing its ability to retain and grow revenue from existing customers.

Rubrik Inc. is projecting a Subscription ARR contribution margin of approximately 7.0%, which exceeds previous guidance but still reflects concerns regarding sustainable revenue growth. The expected fiscal year 2026 earnings per share (EPS) remains negative at a range of ($0.50) to ($0.44), although it is less pessimistic compared to the broader market estimate of ($0.97). While the anticipated free cash flow of $145.0 million to $155.0 million significantly surpasses street estimates, the overall negative EPS outlook and reliance on growth investments may raise concerns about the company's financial stability and long-term profitability.