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On Friday, Rosenblatt analysts raised the price target for Rubrik Inc (NYSE:RBRK) stock to $110 from $82, while maintaining a Buy rating. The stock, currently trading near its 52-week high of $101.80, has delivered an impressive 196% return over the past year. The adjustment follows Rubrik’s solid first-quarter performance, which concluded on April 30, showing a 49% increase in top-line growth. This growth exceeded Rosenblatt’s estimates by approximately 7%, largely due to a 54% year-over-year surge in subscription revenue. According to InvestingPro analysis, the stock’s RSI suggests overbought territory, with 11 additional key insights available to subscribers.
Rubrik’s total subscription annual recurring revenue (ARR) reached $1,180 million, marking a 38% increase from the previous year, and surpassing Rosenblatt’s forecast by 2%. The company also reported net new subscription ARR of $89 million for the quarter. With a robust gross profit margin of 76.45%, Rubrik continues to attract interest in its Cyber Resilience platform and plans to broaden its product offerings throughout 2025, despite facing a challenging macroeconomic environment.
The company has updated its fiscal year 2026 revenue outlook to $1,184 million, representing a 33.6% year-over-year increase and exceeding Rosenblatt’s prior estimate of $1,153 million. This outlook anticipates a 30% growth, driving free cash flow between $65 million and $75 million.
In light of these results, Rosenblatt has adjusted its fiscal year 2026 and 2027 forecasts for Rubrik. The firm’s decision to raise the price target reflects confidence in Rubrik’s continued ability to perform well despite broader economic challenges.
In other recent news, Rubrik Inc. reported its first-quarter 2025 earnings, exceeding expectations with an earnings per share (EPS) of -$0.15, compared to the forecasted -$0.32. The company’s revenue reached $278.48 million, surpassing the expected $260.4 million, marking a 49% increase year-over-year. Subscription annual recurring revenue (ARR) rose to $1.2 billion, a 38% increase from the previous year. Rubrik’s subscription revenue also saw a significant rise, growing 54% year-over-year to $266 million. The company continues to expand its cybersecurity offerings by introducing innovative products, which has contributed to its strong performance. Additionally, Rubrik’s free cash flow was reported at $33 million, indicating positive cash generation. Looking ahead, Rubrik projects full-year 2026 subscription ARR to be between $1.38 billion and $1.39 billion, reflecting a growth rate of 26-27%. The company also forecasts total revenue for the year to be in the range of $1.179 billion to $1.189 billion, representing a 33-34% increase.
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