Rubrik Posts 'Respectable' Q1, Not As 'Explosive' As Wall Street 'Needed': Analyst

Shares of Rubrik Inc (NYSE:RBRK) were trading under pressure on Friday morning, despite the company’s upbeat fiscal first-quarter results.

Here are some key analyst takeaways:

• DA Davidson analyst Rudy Kessinger reiterated a Buy rating, while lifting the price target from $70 to $90.
• Scotiabank analyst Joe Vandrick maintained a Sector Outperform rating, while raising the price target from $70 to $95.
• Rosenblatt Securities analyst Blair Abernethy reaffirmed a Buy rating, while listing the price target from $90 to $95.
• BTIG analyst Gray Powell reiterated a Buy rating, while taking the price target higher from $76 to $91.

Check out other analyst stock ratings.

DA Davidson: Rubrik raised its ARR (annual recurring revenue) guidance for fiscal 2027 by more than the guidance. The company reported revenues of $387.1 million. Its operating profit is $24.6 million, with earnings of 16 cents per share. It topped consensus estimates of $366.3 million, a loss of $18.9 million, and a loss per share of 3 cents, respectively.

Subscriber NNARR of $103 million represented a deceleration to 16% year-on-year growth, from the previous quarter's 28% growth, while the figure represented the smallest beat since the company's IPO, Kessinger said in a note. The mid-point of the subscriber ARR guidance reflects around 7% year-on-year growth, "which looks conservative," he further wrote.

Scotiabank: Rubrik delivered a "respectable performance," but the beat was not as "explosive" as was needed to drive the stock higher, given the 34% rally over the past month, Vandrick said. A positive in the quarter was that the rising hardware prices did not have a meaningful impact on the company's results, he added.

The analyst expressed optimism that Rubrik could deliver more than 30% subscriber ARR growth this year. Rubrik could benefit from the coming release of Mythos, which is already driving an increase in customer conversations, Vandrick added.

Rosenblatt Securities: Rubrik’s revenues grew 39% year-on-year to $387 million. It topped consensus of $366.3 million, while subscription ARR grew 32% year-on-year to a higher-than-expected $1.57 billion.

Rubrik's cloud ARR grew 43% year-on-year to $1.39 billion, with customers migrating and adopting the Rubrik Security Cloud. Customer generating more than $100,000 in subscription ARR grew to 2,946. This demonstrated a “deepening penetration" of the company's base, he further wrote.

BTIG: Rubrik's upward revision in its full-year guidance was "impressive," Powell said. The company raised its ARR guidance for fiscal 2027 by $24 million, versus the first quarter's $17 million beat, he added.

Management commentary "increasingly suggests" that AI is transforming from a threat to a demand catalyst, the analyst stated. The emergence of frontier AI attack models, like Anthropic's Mythos, "is clearly accelerating C-suite urgency around cyber resilience and recovery readiness," and Rubrik is a direct beneficiary of this trend, he further wrote.

RBRK Price Action: Shares of Rubrik had declined by 5.13% to $73.00 at the time of publication on Friday.

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