Cybersecurity company Rubrik Inc. (RBRK.US) reported its fiscal 2026 second quarter financial results after Tuesday's market close. The company delivered revenue of $309.9 million, significantly exceeding expectations of $282.26 million. Subscription revenue surged 55% year-over-year to $297 million, while subscription annual recurring revenue (ARR) grew 36% year-over-year to $1.25 billion. The company posted an adjusted loss per share of $0.03, much better than the consensus estimate of a $0.34 loss per share. Free cash flow reached $57.5 million, compared to negative $32 million in the prior year period.

Looking ahead, Rubrik projects third quarter revenue of $321 million, up from the previous expectation of $302 million. The company expects earnings per share loss to range between $0.18 and $0.16, improved from the prior forecast of a $0.26 loss per share. Additionally, the company anticipates full-year subscription recurring revenue between $1.41 billion and $1.42 billion, surpassing the $1.38 billion expectation.

Rubrik's second quarter results and forward guidance demonstrate its leadership position in the data security sector, prompting several Wall Street firms to raise their price targets on the stock. Despite the stock plummeting over 18% on Wednesday, some analysts noted that this decline was partly attributable to the significant gains the stock had already achieved over the past year.

Goldman Sachs reiterated its "Buy" rating on Rubrik Inc., raising the price target from $117 to $120. Goldman analysts led by Kash Rangan stated in their report: "We believe this likely reflects that FY26 subscription ARR did not see a genuine upward revision, and the market's recognition that part of this quarter's revenue beat and raise was primarily related to one-time 'Material Rights,' especially given the stock's 15% gain over the past month (compared to just 2.3% for the Nasdaq) against high expectations. Nevertheless, underlying business momentum remains notably positive—subscription net new ARR (NNARR) grew 13% (compared to 23% in Q1); free cash flow (FCF) remained positive for the fourth consecutive quarter, with full-year FCF margin guidance raised from +6% to +12%; new large customers (>$100K) grew 13% (compared to 15% in Q1); and new products like Identity Recovery are showing early growth momentum (with 200+ customers)."

KeyBanc maintained its "Overweight" rating on Rubrik Inc., raising the price target from $114 to $117. KeyBanc analysts Eric Heath and Ritu Kashyap noted in their investor report: "Revenue of $310 million (51% YoY growth) exceeded consensus expectations of $282 million (38% YoY growth), but similar to last quarter, 7 percentage points benefited from one-time revenue related to 'Material Rights.' Subscription revenue of $297 million (55% YoY growth) exceeded consensus expectations of $271 million (42% YoY growth). Billings revenue was $378 million (53% YoY growth), above consensus expectations of $318 million (29% YoY growth), benefiting from some multi-year early renewals and one-time advance billing."

Piper Sandler maintained its "Overweight" rating on Rubrik Inc. with a $115 price target. Piper Sandler analysts James Fish and Caden Dahl stated: "As the market shifts toward 'Gen Z' architecture, Rubrik's aggressive market expansion strategy is driving market share growth; potential convergence of identity and data security capabilities; cyber resilience as a priority; customer consolidation trends on the platform; and operating leverage—all these factors make the stock an extremely attractive long-term investment target in our view."

Mizuho Securities maintained its "Neutral" rating on Rubrik Inc. with a $97 price target. Mizuho analysts led by Gregg Moskowitz stated in their research report: "More broadly, we firmly believe that Rubrik's intense focus on data protection and operationalization, along with its industry-leading ransomware defense capabilities, positions it significantly ahead of most traditional and emerging vendors in this space. That said, as we noted in our recent downgrade report, Rubrik's stock price has risen over 200% since its mid-2024 IPO and is up 51% year-to-date, so we believe the stock is now relatively fairly valued."