Shares in Rubrik Inc. fell more than 2% in late trading today despite the security and AI operations company reporting beats in revenue and earnings in its fiscal first quarter and raising its outlook for the full year.

For the quarter that ended on April 30, Rubrik reported adjusted earnings of 16 cents per share, reversing a loss of 15 cents per share in the same quarter a year earlier, on revenue of $387.1 million, up 39% year-over-year. Both figures came in ahead of analysts’ expectations of a loss of three cents per share on revenue of $366.3 million.

Subscription revenue led the result, rising 41% year-over-year to $374.2 million. Subscription annual recurring revenue grew 32%, to $1.57 billion, as of April 30, and the company counted 2,946 customers with subscription annual recurring revenue of $100,000 or more, up 24% from a year earlier.

Rubrik posted a net loss of $41.9 million, or 21 cents per share, narrowing sharply from a loss of $102.1 million, or 53 cents per share, a year ago. Cash flow from operations was $81.7 million, up from $39.7 million and free cash flow reached $73.6 million for a free cash flow margin of 19%. The company ended the quarter with $1.75 billion in cash, cash equivalents and short-term investments.

Business highlights in the quarter included gaining access to Anthropic PBC’s Mythos research preview as part of Project Glasswing, testing the frontier AI model to improve breach response. Rubrik also launched data protection for Google Workspace, extending its software-as-a-service coverage to Gmail and Google Drive and rolled out Rubrik Agent Cloud for Google Cloud’s Gemini Enterprise Agent Platform.

The company unveiled a governance engine it calls SAGE, for Semantic AI Governance Engine, that underpins real-time guardrails for AI agents and announced a Microsoft Defender integration that ties identity threat detection to automated rollback and recovery. Rubrik was also selected as a preferred cybersecurity provider by the American Hospital Association, giving nearly 5,000 member hospitals access to its cyber resilience bundle.

“We are off to an excellent start to fiscal 2027 as Rubrik is now an increasingly strategic platform for agentic cyber resilience, bringing together data, identity and AI in a single architecture,” Chief Executive Bipul Sinha said in the company’s earnings release.

For its fiscal year 2027 second quarter, Rubrik expects revenue of $395 million to $397 million, ahead of the $382.6 million analysts had been expecting, and adjusted earnings of three to five cents per share. The company raised its full-year revenue forecast to a range of $1.638 billion to $1.648 billion, with adjusted earnings of 25 to 35 cents per share.

It was the third quarter running that Rubrik beat expectations only to see its shares fall in late trading.

Image: Rubrik