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On Friday, Guggenheim analysts raised the price target for Rubrik Inc (NYSE:RBRK) stock to $108 from $105, maintaining a Buy rating. The stock has shown remarkable momentum, delivering a 196% return over the past year and trading near its 52-week high of $101.80. This decision comes as Rubrik’s Total (EPA:TTEF) New Annual Recurring Revenue (ARR) grew 29%, and Subscription ARR increased 27%, exceeding expectations despite challenging comparisons.
Rubrik’s revenue growth accelerated to 49%, surpassing consensus estimates by 7%, with some of this growth attributed to more upfront revenue than anticipated. Subscription revenue saw a 54% growth, outperforming the consensus by 15%. The company, now valued at $19.06 billion, maintains an impressive 76.45% gross margin and is recognized as a leader in Cyber Resiliency, focusing on data protection and recovery from security breaches.
CEO Bipul Sinha emphasized Rubrik’s strategy as an alternative to constantly acquiring new tools for emerging threats. The company’s approach combines prevention and detection with a robust recovery and resilience strategy, supported by strong financial performance.
Rubrik reported free cash flow of $33 million, which was $7 million above consensus, marking the third consecutive quarter of positive free cash flow. Guggenheim analysts highlighted this performance as indicative of the company’s ability to scale efficiently while capturing new business.
In other recent news, Rubrik Inc. has reported impressive financial results for its first fiscal quarter of 2025. The company achieved an earnings per share (EPS) of -$0.15, significantly outperforming the forecasted -$0.32. Rubrik’s revenue reached $278.48 million, surpassing expectations of $260.4 million and marking a 49% year-over-year increase. The company’s subscription annual recurring revenue (ARR) grew by 38% to $1.18 billion, with a notable 54% rise in subscription revenue. Analysts from Mizuho (NYSE:MFG) and Rosenblatt have responded to these results by raising their price targets for Rubrik stock to $97 and $110, respectively. Mizuho maintains a Neutral rating, while Rosenblatt continues with a Buy rating, reflecting confidence in Rubrik’s ongoing performance and market position. Despite challenging macroeconomic conditions, Rubrik has updated its fiscal year 2026 revenue outlook to between $1.179 billion and $1.189 billion, projecting a 33-34% increase. The company plans to continue expanding its product offerings and investing in research and development.
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