Rubrik delivered a standout QQ3 2026 performance with meaningful top-line expansion, improving profitability metrics, and clear progress on a multi-year cloud and AI transformation. Total revenue reached $350.2 million, up 48% year over year, driven by subscription ARR growth and favorable non-recurring revenue from the cloud transformation. Subscription ARR rose to $1.35 billion, up 34% YoY, while cloud ARR reached $1.17 billion, representing about 87% of subscription ARR, underscoring Rubrik’s successful shift to cloud-based protection and SaaS offerings. Management highlighted strong customer retention and expansion dynamics, including a subscription net revenue retention (NRR) over 120% and a growing base of large customers (2,638 with $100k+ ARR). Free cash flow also posted a record $77 million in the quarter, underscoring improving operating leverage.
Rubrik raised full-year guidance on multiple metrics, reflecting conviction in continued demand for cyber resilience and AI-enabled protection. Notably, management cited ongoing momentum in legacy replacements, cloud protection, and identity resilience, with the latter reaching approximately $20 million in subscription ARR in just over three quarters since GA. The company also introduced Rubrik Agent Cloud (RAC) for AI agents, signaling a broader platform strategy that integrates data, identity, and applications to govern and remediate AI-driven workflows. While near-term profitability is improving, Rubrik remains in a high-investment phase as it executes on R&D and GTM initiatives to capture a sizable multi-year opportunity in cybersecurity and AI automation.
Overall, Rubrik’s QQ3 2026 results reinforce a growth-and-accelerator thesis: (1) a scalable platform with cross-sell potential (data protection, identity resilience, and AI operations), (2) durable ARR growth and expanding margins from improved efficiency, and (3) an expanding AI-enabled product roadmap that could drive incremental ARR from large enterprise customers and strategic partnerships. Investors should monitor the evolution of material rights accounting, the trajectory of subscription ARR margins, competitive dynamics in the AI agent space, and the degree to which 2027 headwinds from cloud-related revenue dynamics impact reported growth versus normalized growth.