Rubrik stock collapsed on Wednesday after the company reported a narrower-than-expected second-quarter loss while revenue topped expectations. The company's October-quarter sales outlook came in above views but may have underwhelmed investors amid high expectations.
Heading into the Rubrik earnings report, shares had advanced 50% in 2025 and roughly 200% since the company's mid-2024 initial public offering.
The data storage and security software firm reported results after the market close on Tuesday. In the quarter ending July 31, Rubrik lost 3 cents per share on an adjusted basis vs. a 40-cent loss a year earlier. Wall Street analysts that follow Rubrik stock had estimated a loss of 35 cents per share. Rubrik said revenue rose 51% to $310 million, topping estimates of $282.2 million.
On the stock market today, Rubrik stock retreated 15% to 83.62 in midday trading, diving below the 50-day moving average.
Rubrik sells a cloud computing-based data backup and recovery platform aimed at protecting companies from ransomware attacks. About 85% of Rubrik's revenue comes from subscription software sales.
Key Financial Metric
For Rubrik, Wall Street views subscription-based annual recurring revenue as a key financial metric.
In Q2, Rubrik reported subscription-based ARR of $1.25 billion, up 36%, topping consensus estimates of $1.225 billion.
As of July 31, Rubrik had 2,505 customers with subscription ARR of $100,000 or more, up 27% year over year.
For the October quarter, Rubrik forecast revenue of $320 million at the midpoint of guidance vs. estimates of $302 million.
"Management raised its fiscal 2026 subscription ARR guide to $1.412 billion at the midpoint, or by $28 million from its prior guide, which is similar to the beat versus consensus in the just-reported quarter," said BMO Capital Markets analyst Keith Bachman in a report.
Rubrik Stock Technical Ratings
Meanwhile, Rubrik stock holds a Composite Rating of 71 out of 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Further, Rubrik stock has an Accumulation/Distribution Rating of B-minus. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. Its current rating indicates more funds are buying than selling.
Rubrik's IPO in 2024 raised over $750 million, with shares priced at 32. Founded in 2014, Rubrik's investors included Microsoft.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
