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On Friday, KeyBanc analysts raised the price target for Rubrik Inc (NYSE:RBRK) stock to $113 from $98, maintaining an Overweight rating. This decision follows Rubrik’s impressive performance in its first fiscal quarter, which surpassed both top- and bottom-line expectations and led to an optimistic guidance for fiscal year 2026. According to InvestingPro data, the stock has delivered an exceptional 196% return over the past year and is currently trading near its 52-week high of $101.80.
The analysts highlighted Rubrik’s strong annual recurring revenue (ARR) growth, noting a $33 million beat in the first quarter, aligning with the company’s historical average. The quarter also saw a significant year-over-year increase of over 300% in DSPM ARR. For the second fiscal quarter, Rubrik has guided its ARR to $1,227 million, representing a 33% year-over-year growth, compared to the consensus estimate of $1,193 million. The company maintains a healthy gross profit margin of 76.45% and has achieved revenue growth of 43.89% over the last twelve months. For deeper insights into Rubrik’s financial health and growth metrics, check out the comprehensive Pro Research Report available on InvestingPro.
The report emphasized the potential in identity resilience, which, when combined with DSPM, is seen as a major growth opportunity for Rubrik. This outlook is supported by management’s view that the market for next-generation backup and recovery solutions is expanding, driven by legacy system displacements, increased workloads, and enhanced security features.
KeyBanc’s analysts underscored the relevance of Rubrik’s offerings in the context of a challenging macroeconomic environment, citing continued demand catalyzed by high-profile ransomware attacks. The report concluded with an optimistic note on Rubrik’s future prospects, leading to the increased price target.
In other recent news, Rubrik Inc. reported a strong first-quarter performance for fiscal year 2025, exceeding earnings expectations with an earnings per share (EPS) of -$0.15 against a forecast of -$0.32. The company achieved a 49% year-over-year revenue increase, reaching $278.48 million, surpassing the anticipated $260.4 million. Rubrik’s subscription annual recurring revenue (ARR) also showed robust growth, climbing 38% year-over-year to $1.2 billion, indicating strong market demand for its offerings. Analyst firms have responded positively to Rubrik’s financial results, with Guggenheim, Mizuho (NYSE:MFG), and Rosenblatt all raising their price targets for the company’s stock, citing strong growth and performance metrics. Guggenheim and Rosenblatt maintained a Buy rating, while Mizuho held a Neutral rating, reflecting varying levels of confidence in the stock’s current valuation. Rubrik’s free cash flow was reported at $33 million, marking the third consecutive quarter of positive cash flow, which was $7 million above consensus expectations. The company’s strategic focus on cybersecurity and operational resilience continues to differentiate it from competitors, drawing attention from analysts and investors alike. With plans to broaden its product offerings and an updated fiscal year 2026 revenue outlook, Rubrik aims to sustain its growth trajectory in the evolving cybersecurity market.
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