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On Friday, Goldman Sachs analysts raised the price target for Rubrik Inc (NYSE: RBRK) stock to $117 from a previous target of $82, maintaining a Buy rating. Currently trading at $98.57, near its 52-week high of $101.80, the stock has delivered an impressive 196% return over the past year, according to InvestingPro data. This adjustment follows Rubrik’s impressive first-quarter financial results, which showed a 7% revenue increase compared to consensus estimates and a 2% rise in Subscription Annual Recurring Revenue (ARR). The company’s Cloud ARR grew by 60%, slightly lower than the 67% growth in the previous quarter.
The analysts noted that Rubrik’s contribution margin improved by 300 basis points, reaching 8%. The company maintains a healthy gross profit margin of 76.45%, though InvestingPro data shows it’s not yet profitable, with a loss per share of $2.82 over the last twelve months. Despite the stock’s significant 90% increase since April, it remained flat after-hours as the market had likely anticipated the strong results. The analysts expressed confidence in Rubrik’s potential for sustainable growth and margin improvement.
Rubrik’s financial guidance for fiscal year 2026 also saw a slight increase, with a 1% revenue raise excluding the first-quarter beat. The Subscription ARR for the second to fourth quarters implied an additional $3 million, while the contribution margin and free cash flow margin were raised by 100 basis points.
The analysts highlighted Rubrik’s expanding product scope beyond its core backup services as a factor supporting its growth potential. The company’s early products are gaining momentum, with a 300% year-over-year increase in DSP ARR and significant adoption of additional security functionalities. Rubrik’s integration with Google (NASDAQ:GOOGL) Agentspace was also noted as a positive development.
Despite trading at a high valuation, the analysts believe Rubrik is well-positioned to capitalize on opportunities in the backup and recovery market, which is still largely untapped. With revenue growth of 43.89% over the last twelve months and operating with moderate debt levels, they expect Rubrik to continue its expansion into business-critical segments, such as Identity, supporting long-term revenue growth. For deeper insights into Rubrik’s valuation and growth metrics, including 11 additional ProTips and comprehensive financial analysis, visit InvestingPro.
In other recent news, Rubrik Inc. reported strong first-quarter results for fiscal year 2026, surpassing expectations in revenue, annual recurring revenue (ARR), and earnings per share (EPS), prompting several analyst firms to revise their price targets. Truist Securities raised Rubrik’s stock price target to $110, highlighting the company’s robust performance and strategic focus on data security. Piper Sandler increased their target to $115, noting Rubrik’s impressive growth dynamics in cyber-resilience and ransomware. KeyBanc also adjusted their target to $113, emphasizing Rubrik’s strong ARR growth and optimistic guidance for the fiscal year. Guggenheim raised their target to $108, acknowledging Rubrik’s significant revenue growth and leadership in cyber resiliency. Meanwhile, Mizuho (NYSE:MFG) set a new price target of $97, pointing out Rubrik’s strong subscription ARR growth and focus on data protection. Across these analyses, Rubrik’s innovative solutions and strategic market positioning were consistently recognized as key factors driving its success. Management’s optimism about new product launches, such as the Identity Recovery solution, further underscores the company’s growth potential.
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