Key financial results
- Subscription ARR reached $1.66 billion, growing 33% year-over-year.
subscription ARR reached $1.66 billion, growing 33% year-over-year
- Net new subscription ARR reached approximately $96 million in the second quarter.
net new subscription ARR reached approximately $96 million in the second quarter
- Subscription revenue was $407 million, growing 37% year-over-year.
subscription revenue was $407 million, growing 37% year-over-year
- Subscription NRR remained strong at over 119%.
subscription NRR remained strong at over 119%
- Subscription ARR contribution margin improved by about 460 basis points year-over-year to 14% for the last 12 months.
subscription ARR contribution margin, up about 460 basis points year-over-year
- Free cash flow was $66 million compared to $57.5 million in the second quarter of fiscal 2026.
We generated $66 million in free cash flow this quarter.
- Total revenue was $427.3 million, up 38% year-over-year.
Total revenue was $427.3 million, up 38%.
Business segment results
- Enterprise customers: Customers with subscription ARR of $100,000 or more reached 3,084, growing 23% year-over-year.
Customers with 100,000 or more in subscription ARR reached 3,084, growing 23% year-over-year.
- Large enterprise: Customers with subscription ARR of $1 million grew over 57%.
Customers with subscription ARR of $1 million grew over 57%.
- Geography: Americas revenue grew 33% to $299 million while revenue from outside the Americas grew 52% to $129 million.
Revenue from the Americas grew 33% to $299 million. Revenue from outside the Americas grew 52% to $129 million.
- Identity Resilience: Identity resilience continues to be one of the fastest growing product lines in the company history.
identity resilience business continues to be one of the fastest-growing product lines in the company's history.
- Rubrik Agent Cloud: Rubrik Agent Cloud reached over 15 paying customers.
We now have over 15 and growing RAC customers.
- Cloud ARR: Cloud net new ARR grew 20% year-over-year.
we grew 20% year-over-year in terms of the cloud net new ARR growth.
- Segment profit: Management did not give specific segment profit figures by product line on the call.
Capital allocation
- The company ended the quarter with $1.75 billion in cash, cash equivalents and short-term investments.
$1.75 billion in cash, cash equivalents and short-term investments
- Convertible debt stood at $1.13 billion at the end of the quarter.
$1.13 billion in convertible debt
- The company plans to continue investing in R&D and go-to-market initiatives targeting regions and verticals with attractive ROI.
We plan to continue making operational investments across 2 key areas.
- Management did not discuss share buybacks or dividends on the call.
Industry trends and dynamics
- AI models and autonomous agents are creating new risks with threat actors using AI for vulnerability chaining at machine speed.
Today, AI agents are attacking us. These autonomous agents use AI for vulnerability chaining
- AI agents are running business processes and workflows that assume identities and access sensitive data, increasing agentic overreach risks.
AI agents are increasingly running business processes, workflows that assume identities, access sensitive data
- Geopolitical concerns and the need for sovereign clouds are driving demand for non-cloud sovereign deployments.
overall geopolitics concerns is driving noncloud sovereign deployments.
- Management did not cite any negative macroeconomic trends affecting IT spending.
Competitive landscape
- Rubrik won a new logo deal with a U.S. state government agency, displacing a legacy incumbent.
landed a new logo deal with the U.S. state government agency which displaced its legacy incumbent
- A Global 2000 financial services customer was won by displacing a legacy vendor and outcompeting a NuGen competitor.
won a new Global 2000 financial services customer displacing a legacy vendor and outcompeting a NuGen competitor.
- An online fashion retailer deal displaced incumbent native backup tools and beat a point solution competitor.
displacing its incumbent native backup tools and beating out a point solution competitor.
- Management did not provide detailed market share percentages for the overall industry.
Macroeconomic environment
- Geopolitical factors and security concerns are leading countries to protect their digital and economic infrastructure through sovereign cloud deployments.
- Management did not discuss broader macroeconomic indicators such as inflation, interest rates, or currency fluctuations.
Growth opportunities and strategies
- Rubrik Flex was introduced as a unified platform contract vehicle with 1 license, 1 contract and 1 commitment.
Rubrik Flex. our unified platform contract vehicle, which we introduced at Forward in June.
- The company expanded Identity Resilience with identity roll forward capabilities through the acquisition of Strata Identity.
Our recent acquisition of Strata Identity only accelerated, bringing orchestration capabilities
- Rubrik Agent Cloud was built around continuous monitoring, dynamic runtime security via SAGE, and agent rewind.
- Management did not disclose specific long-term revenue targets beyond fiscal year 2027.
Financial guidance and outlook
- For the third quarter of fiscal 2027, revenue is expected between $429 million and $431 million.
we expect revenue of $429 million to $431 million
- Third quarter material rights are expected to contribute approximately $2 million to $3 million to revenue.
contribute approximately $2 million to $3 million to revenue in the third quarter.
- Third quarter non-GAAP subscription ARR contribution margins are expected to be approximately 14%.
expect non-GAAP subscription ARR contribution margins of approximately 14%.
- Third quarter non-GAAP earnings per share are expected to be $0.07 to $0.09 based on approximately 230 million shares.
expect non-GAAP earnings per share of $0.07 to $0.09
- For full year fiscal 2027, subscription ARR is expected between $1.88 billion and $1.885 billion, growing approximately 29%.
expect subscription ARR in the range of $1.88 billion to $1.885 billion
- Full year fiscal 2027 total revenue is expected between $1.685 billion and $1.693 billion, with material rights contributing around $18 million.
expect total revenue for the full year fiscal 2027 in the range of $1.685 billion to $1.693 billion.
- Full year fiscal 2027 non-GAAP subscription ARR contribution margins are expected to be approximately 15.5%.
expect non-GAAP subscription ARR contribution margins of approximately 15.5% for the full year fiscal 2027.
- Full year fiscal 2027 non-GAAP earnings per share are expected to be $0.47 to $0.53 based on approximately 228 million shares.
expect non-GAAP earnings per share of $0.47 to $0.53
- Full year free cash flow is expected to be $323 million to $333 million.
expect free cash flow of $323 million to $333 million.
Q2 FY2027 results
| Metric | Result | Change |
|---|---|---|
| Subscription ARR | $1.66 billion | 33% year-over-year |
| Subscription revenue | $407.2 million | 37% year-over-year |
| Total revenue | $427.3 million | 38% year-over-year |
| Free cash flow | $65.7 million | Not stated |
| Customers with ARR of $100,000 or more | 3,084 | 23% year-over-year |
How management sounded
Positive (+45 on our -100 to +100 scale). Management highlighted accelerating net new ARR growth, consecutive quarters of outperformance, and raised full-year guidance. Management sounded more upbeat than on 62% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- Adoption and monetization trends for Rubrik Agent Cloud and Identity Resilience.
- The progression of non-cloud sovereign and regulated customer deployments.
- Execution against raised full-year guidance targets for subscription ARR and free cash flow.
Earlier calls
- Q1 FY2027 (Jun 4, 2026), tone Balanced: Rubrik reported a strong first quarter for fiscal year 2027, exceeding all guided metrics with subscription ARR reaching $1.57 billion, up 32% year-over-year, and raising its full year outlook.
