Rubrik Q2 Earnings Call Highlights

Rubrik exceeded second-quarter guidance , with subscription ARR rising 33% year over year to $1.66 billion, revenue increasing 38% to $427.3 million, and free cash flow growing to $65.7 million. Net revenue retention topped 119%, while customers generating at least $100,000 in subscription ARR increased 23%. The company is expanding beyond core data protection into AI-agent security and identity resilience . Rubrik reported more than 15 paying Agent Cloud customers, early adoption of identity products, and initial deals for its unified Rubrik Flex offering. Rubrik raised its fiscal 2027 outlook , projecting subscription ARR of $1.88 billion to $1.885 billion, revenue of $1.685 billion to $1.693 billion, free cash flow of $323 million to $333 million, and non-GAAP EPS of $0.47 to $0.53.

Rubrik NYSE: RBRK reported second-quarter fiscal 2027 results that exceeded its guidance, with subscription annual recurring revenue, revenue and free cash flow all rising from a year earlier. The data security company also raised its full-year outlook, citing demand for cyber resilience products and continued expansion among enterprise customers. Chief Executive Officer Bipul Sinha said the company delivered its 10th consecutive quarter of outperformance as a public company. Subscription ARR reached $1.66 billion, up 33% year over year, while net new subscription ARR was approximately $96 million. Subscription revenue rose 37% to $407 million, and total revenue increased 38% to $427.3 million.

Rubrik reported a subscription net revenue retention rate of more than 119%. The number of customers with at least $100,000 in subscription ARR rose 23% to 3,084, and those customers accounted for 88% of total subscription ARR. Customers generating $1 million or more in subscription ARR increased more than 57%, according to Chief Financial Officer Kiran Choudary.

On a non-GAAP basis, Rubrik reported an 81% gross margin for the quarter, compared with 81.6% a year earlier. The company said subscription ARR contribution margin for the trailing 12 months ended July 31 was 14%, up from 9.4% a year earlier, representing a 460-basis-point improvement. Free cash flow was $65.7 million, compared with $57.5 million in the second quarter of fiscal 2026. Choudary attributed the increase primarily to higher sales and improved operating leverage. Rubrik ended the quarter with $1.75 billion in cash equivalents and short-term investments, along with $1.13 billion in convertible debt. Revenue from the Americas rose 33% to $299 million, while revenue outside the Americas increased 52% to $129 million. The company said total revenue normalized for material rights related to its cloud transformation increased 43% year over year. Material rights contributed about $4.7 million to subscription revenue in the quarter, versus $8.5 million in the preceding quarter.

Sinha emphasized the company’s strategy around what it calls “agentic cyber resilience,” arguing that enterprises need faster recovery capabilities as AI agents become more prevalent in cyberattacks and business workflows. Rubrik operates Rubrik Security Cloud, focused on cyber resilience and recovery, and Rubrik Agent Cloud, which is designed to provide security and governance for customers’ AI agents. The company said it has more than 15 paying Rubrik Agent Cloud customers and is seeing proof-of-concept engagements convert into production deployments. Sinha said the platform includes agent vis...