Aug 27, 2026 earnings call — Agentic cyber resilience growth and raised outlook
Subscription ARR reached $1.66 billion, growing 33% year-over-year, and management raised its outlook for the year.
Revenue $0.4B (est $0.4B) · EPS $0.20 (est $0.04) · Next-quarter revenue outlook $0.4B–$0.4B
Key quotes
"What you will need is a new approach, preemptive risk assessment, real-time guardrail and AI speed recovery."
"As a reminder, in RAC, we are building a complete agent security and governance platform across agent visibility, agent identity, agent runtime security and agent rewind."
"With these capabilities, Identity Resilience now gives our customers the ability to recover identity systems to a clean current state without losing legitimate business progress and without leaving attackers' persistence behind."
Analyst Q&A 12
how much ARR from Strata deal
Q (Saket Kalia · Barclays): He asked how much of this quarter's subscription ARR came from the Strata Identity deal or inorganic sources.
A: Management said there was 0 ARR from the Strata acquisition in Q2. They also said the guidance assumes 0 ARR from Strata for the year.
"I'll just clarify here that in the most recent reported quarter, Q2, there was 0 ARR from Strata acquisition." — Kiran Choudary (CFO)
why guidance shows slower back half ARR
Q (Fatima Boolani · Citi): She asked why the guidance implies much slower net new ARR in the back half and what could make the back half as strong as the first half.
A: They said they raised the guide by about $24 million to $25 million versus the prior guide and the implied net new ARR growth for the year moved from 7% to 14% (700 basis points). They run the business on an annual net basis, focus on annual numbers, have a multiproduct motion, and feel confident in the pipeline and numbers to execute.
"In fact, the net new ARR growth rate implied by the new guidance for the year is 700 basis points over the previous guide, went from 7% to 14%." — Kiran Choudary (CFO)
are products ready for AI agents
Q (John DiFucci · Guggenheim): He asked whether Rubrik's products are ready to secure and govern AI agents when customers adopt them widely.
A: Management said they built a comprehensive agentic security and governance approach covering visibility, agentic identity, runtime security (SAGE), and Agentic Rewind. They gave an example of a large U.S. health care technology firm that bought Rubrik to ensure compliant agentic usage, and said they are ready when customers are ready.
"So we are taking a comprehensive approach to agentic security and helping our customers go on the agentic journey." — Bipul Sinha (CEO·CHAIR)
cloud vs non-cloud ARR mix
Q (Gregg Moskowitz · Mizuho): He asked why cloud net new ARR growth was below total net new subscription ARR growth and what to expect for the cloud versus non-cloud mix going forward.
A: They said the non-cloud business serves regulated, on-prem customers and has started to grow as migrations to cloud have largely completed. Geopolitics and sovereign cloud needs are also driving non-cloud demand, so total subscription ARR growth will be a combination of cloud and non-cloud and they provided modeling points for the second half.
"So the total net new ARR growth for subscription ARR is going to be a combination of the cloud as well as non-cloud." — Kiran Choudary (CFO)
demand after Mythos (cyber resilience)
Q (Eric Heath · KeyBanc): He asked whether Mythos has created incremental demand for cyber resilience and how that demand showed up in the quarter or outlook.
A: Management said Mythos and Frontier AI models are an inflection point that make vulnerability chaining turn low-priority issues into P0 problems and remove time between intrusion and breach. As a result, customers are accelerating adoption of machine-speed recovery and Rubrik sees demand for preemptive, AI-speed recovery and agent resilience via the Rubrik Agent Cloud.
"What Mythos has demonstrated is the vulnerability chaining will make low priority vulnerability into a P0 problem." — Bipul Sinha (CEO·CHAIR)
RAC competition, customers, and ARR timing
Q (Keith Bachman · BMO): He asked where RAC will face competition, whether the 15 customers are paying, and if RAC should be expected to contribute ARR this year or next fiscal.
A: They said they have more than 15 paying customers for RAC and are seeing proof-of-concept to production deployments. Competition exists from point solutions for visibility or access, but Rubrik uniquely watches agent intent and offers visibility, identity, runtime security and Agent Rewind on one platform. They also said there is minimal assumption of RAC in this year's ARR and they will update as the year progresses.
"So yes, we have more than 15 paying customers for RAC." — Bipul Sinha (CEO·CHAIR)
hardware costs and customer displacement
Q (Junaid Siddiqui · Truist): He asked whether rising hardware costs or supply issues are causing customers to replace hardware-dependent backup and whether pricing could create durable share gains.
A: They said Rubrik has a product that can use customers' existing infrastructure and that they are primarily a software company selling across cloud and vendors. Enterprise protection is a smaller part of the business, and Rubrik's mix into cloud, M365, Identity and RAC means they saw no material impact from rising hardware costs or supply-chain issues.
"So Junaid, just to give you the market and product sense, Rubrik does have a product that utilizes our customers' existing infrastructure to deliver cyber resilience." — Bipul Sinha (CEO·CHAIR)
identity product adoption in base
Q (Paramveer Singh · Oppenheimer): He asked how widely Identity Resilience is adopted across Rubrik's installed base and whether it's an incremental penetration opportunity or a lead product.
A: Management said identity is still early days and penetration in their customer base is still very early, though they see significant opportunity. They started with Identity Recovery and then Identity Resilience, and this quarter closed their largest international identity deal with an existing customer needing recovery in hours versus days.
"It's still early days for us in identity and penetration in our customer base is still very early." — Bipul Sinha (CEO·CHAIR)
build versus buy strategy
Q (Zachary Schneider · Baird): He asked how Rubrik thinks about building versus buying as the opportunity broadens across identity and AI, and where M&A might be more attractive.
A: They said they follow a platform strategy where each additional product increases the value of existing products, and they look to bring teams, technologies and products into the platform for a seamless customer experience. They are not dogmatic and evaluate both organic and inorganic options to accelerate the roadmap and customers' AI transformation.
"We always take this approach that we want to look at teams, technologies, products that we can bring in and integrate into our platform so that our customers continue to have a seamless experience." — Bipul Sinha (CEO·CHAIR)
is non-cloud growth a good thing?
Q (Gray Powell · U.S. Bank): He asked whether growth in non-cloud ARR is good and whether there are margin or expansion differences versus cloud.
A: They said Rubrik runs two businesses: a larger cloud business and a smaller but growing non-cloud business driven by regulatory and sovereign requirements. Both are growth drivers and they focus on total subscription ARR; at this scale they are 89% cloud, and non-cloud generally has higher margin because customers self-host.
"I would say, obviously, from a margin perspective, the non-cloud business would have a higher margin because the customer is self-hosting and we are not hosting it for them." — Kiran Choudary (CFO)
hardware lead times and deployment
Q (Rudy Kessinger · D.A. Davidson): He asked what customers are seeing in hardware lead times versus 90 days ago and how they deploy software if they can't procure hardware.
A: They said there was no material impact from hardware pricing or supply chains on subscription ARR, and that they saw the same phenomenon in prior quarters. Lead times have actually improved since the start of the year and the small portion of hardware they sell is largely in smaller regions like parts of Asia Pacific.
"On your question on lead times, actually, we are not in the hardware business per se. There's a small portion of hardware, which we sell, and that's largely in regions which are smaller like in some regions in Asia Pacific." — Kiran Choudary (CFO)
why identity resilience demand is strong
Q (William Vandrick · Scotiabank): He asked what is driving strength in Identity Resilience today, whether demand is incident-driven or proactive, and whether deployments are greenfield or displacement.
A: They said identity has become the weakest link and ground zero for cyber because attackers often log in and can persist or destroy identity systems. Customers are buying Identity Resilience and Recovery to detect misconfigurations, recover quickly, and roll back and roll forward legitimate identity changes; they are seeing both brownfield and white-space customers.
"So identity systems have become also ground zero for cyber." — Bipul Sinha (CEO·CHAIR)