Rubrik delivered a standout Q2 FY2026, underscoring the company’s transition from a data-protection vendor to a security and AI platform provider. Key metrics highlight durable ARR growth and improving profitability: subscription ARR surpassed $1.25 billion, up 36% year over year; subscription revenue reached $297 million, up 55% YoY; and subscription net revenue retention remained robust above 120%. Large customers (subscription ARR >$100k) rose to 2,505, up 27%, signaling deepening enterprise penetration. Free cash flow was positive at about $57.5 million, with a free cash flow margin of roughly 19%, aided by ARR strength, improved subscription ARR contribution margins (up ~1,800 basis points YoY), and capital-structure optimization. Management raised full-year guidance as Rubrik accelerates into enterprise AI with Predibase and AI-centric products like Identity Recovery and DSPM integration under Rubrik Security Cloud (RSC). On the operating side, non-GAAP gross margin expanded to 82%, supported by higher ARR mix and efficiency gains, while the GAAP net income remained negative as Rubrik continues to invest in growth and AI-driven capabilities. The company acknowledges seasonality in quarterly margins and continues to fund R&D and GTM investments to sustain long-dated growth. Overall, Rubrik’s quarterly performance reinforces a two-thread thesis: (1) execution in the cyber resilience market with an expanding land-and-expand model, and (2) a meaningful AI-enabled growth vector via Predibase and enterprise AI solutions that could extend durability of ARR and margin expansion over the multi-year horizon.