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Investing.com - Goldman Sachs has raised its price target on Rubrik Inc (NYSE:RBRK) to $120.00 from $110.00 while maintaining a Buy rating following the company’s strong fiscal second-quarter results. The stock has demonstrated remarkable momentum, surging 211.91% over the past year and currently trading near its 52-week high of $103.According to InvestingPro data, Rubrik currently appears overvalued based on its Fair Value analysis. InvestingPro offers 12+ additional insights about Rubrik’s valuation and growth prospects.
The data security firm reported revenue that exceeded consensus estimates by 10% and subscription annual recurring revenue (ARR) that beat expectations by 2%. Operating margin and free cash flow margin both outperformed by 1900 basis points. The company maintains impressive gross profit margins of 76.45% and has achieved revenue growth of 43.89% over the last twelve months, though it remains unprofitable with earnings per share at -$2.82.
Rubrik has raised its fiscal year 2026 guidance for revenue, ARR, and free cash flow. The company’s free cash flow has been positive for four consecutive quarters, with free cash flow margin guidance increased to 12% from 6% previously.
Customer growth metrics showed continued momentum with customers spending over $100,000 increasing by 13% compared to 15% in the first fiscal quarter. The company’s newer products, including Identity Recovery, have gained traction with over 200 customers.
Goldman Sachs noted that Rubrik continues to expand its innovation capabilities by increasing workload coverage, advancing AI initiatives with Annapurna and the Predibase acquisition, and expanding its data security product suite.
In other recent news, Rubrik Inc. reported its Q2 2025 earnings, surpassing expectations with an earnings per share (EPS) of -$0.03, compared to the projected -$0.34. The company’s revenue for the quarter reached $310 million, exceeding forecasts and representing a 51% increase from the previous year. These results mark a significant achievement for Rubrik Inc. and have drawn attention from the investment community. Additionally, the earnings call provided insights into the company’s strategic direction and operational efficiency. Analysts from various firms have noted the strong performance, although specific upgrades or downgrades were not mentioned in the recent reports. The unexpected earnings beat has positioned Rubrik Inc. favorably in the market, highlighting its robust financial health. Investors are now closely monitoring the company’s future developments following these recent results.
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