Rubrik, Inc. Q3 FY2026 earnings call

• Third quarter results were exceptional with record net new subscription ARR, $336M subscription revenue, over 120% NRR, 2,638 customers with $100k+ ARR, and $77M free cash flow.
• Focus on being the security and AI operations company, with cyber resilience including data and identity security, and preparation for AI transformation.
• Legacy replacements in data protection accelerated, with examples like a large Asian bank and Fortune 250 professional services firm choosing Rubrik.
• Strong momentum in cloud protection with customer wins like a health and wellness tech company and Fortune 150 biopharmaceuticals company.
• Identity business has significant momentum, reaching ~$20M ARR, doubling identity customers in Q3, and new integrations with Okta and CrowdStrike.
• Launched Rubrik Agent Cloud for AI resilience, in beta with early customer enthusiasm, integrating with Microsoft Copilot Studio and AWS Bedrock.

Subscription ARR reached $1.35 billion, growing 34% year-over-year. Net new subscription ARR was a record $94 million. Subscription revenue was $336 million, growing 52% year-over-year. Subscription NRR remained over 120%. Customers with $100,000 or more in subscription ARR were 2,638, growing 27% year-over-year. Identity business has about $20 million in subscription ARR, with 40% of new identity customers in Q3 being net new to Rubrik. Cloud ARR was $1.17 billion, up 53%.

• Q4 revenue expected $341M-$343M (up ~33% or ~30% normalized for material rights).
• Full year 2026 subscription ARR expected $1.439B-$1.453B (32% YoY growth), total revenue $1.280B-$1.282B (44% growth or 35% normalized), free cash flow $194M-$202M.
• Non-GAAP subscription ARR contribution margins ~9%, non-GAAP EPS negative $0.20 to negative $0.16 for full year.

Q: Nice quarter. Bipul, maybe for you. It's very clear that you're taking share in kind of the core cyber resilience, right, the first of 3 pillars. But you're also growing other businesses like identity. And so I'm curious, how additive can identity be to an average data protection deal? And maybe relatedly, is identity replacing any established tools or is that creating new budget as you sell increasingly to CISOs?

A: Identity is completely additive to the deal. So it is a net new buyer for Rubrik. We are selling identity to the CISO organization to IM persona. And in some cases, we are replacing legacy or new gen vendor, a new gen identity recovery vendor. In other cases, it's a white space. Nevertheless, it's a net new buyer for Rubrik, which is a CISO organization and a net new solution that we have created completely from scratch.

Q: Bipul, do your comment that bookings from legacy replacement accelerated year-over-year stood out to me. I guess from your perspective, what's driving the acceleration there? Is it the modernization ahead of AI that you flagged in the prepared remarks or maybe a growing recognition from CIOs that they simply can't wait to modernize due to the growing threat vectors out there.

A: Thanks. It's both. It's definitely preparing for AI and modernizing the infrastructure, that's a big driver. And the other driver is cyber attacks are inevitable and Rubrik has a unique platform that delivers cyber recovery, leveraging our preemptive recovery engine that is unique in the marketplace. And our speed of recovery is the key factor in making this decision. So CIOs and CISOs are looking at their legacy landscape, including new gen vendors and saying that I'm at risk. Cyber attacks are going to come to me. And if I can't keep my business up and running, it threatens the very existence of the business, and that's what is also driving legacy replacement.

Q: Bipul, this one I want to direct to you. Since your IPO, there has been an absolute avalanche of new product introductions and new capabilities and you're showing and putting points on the board with respect to installed base and new customer uptake in adoption. What I wanted to ask you was just with respect to the platform having expanded so dramatically in the span of the last 18 months. I'm curious how that's influencing your overall sales strategy? And really, the spirit of the question here is what's become very involved and certainly, the companies we cover and the broader enterprise software is this notion of providing flex or consumption-oriented type vehicles to enable customers to have a more fulsome frictionless access to the full portfolio. So a long-winded way to ask you, is that something that you would potentially consider just given how quickly and how robustly the platform's expanded? And how would you idea around that?

A: Thanks, Fatima. So if you look at Rubrik from day 1, our strategy has been a true platform company. And you might ask what is a platform company. Our definition of a platform company is a product when -- a platform when the customer adopts more than 1 product, their value from the platform goes up. I'll give you an example. When our customers buy Rubrik Security Cloud for both data center as well as AWS or Azure cloud, if there is a threat actor in the cloud and same threat actor is in the data center, we can auto correlate threat and give you the full cyber resilience intelligence and recovery on that threat actor. You don't have to pull the logs into Splunk and then try to analyze and figure out what's going on. Rubrik automatically does that for you. Now the same platform is expanded into identity. So now you can actually see what's happening to your identity vis-a-vis data when the privilege gets escalated. Now the same platform we have launched a new product suite in Rubrik Agent Cloud. So now we have 2 distinct product suite. Rubrik Security Cloud for cyber resilience, Rubrik Agent Cloud for enterprise AI acceleration. So our strategy has always been give customer a comprehensive platform and be the strategic IT vendor for that customer for years and years to come. Obviously, we want to make it easier for our customers to consume Rubrik product, try new Rubrik product. And we don't easily lose customers because we provide a mission-critical solution and customer retention has been one of the hallmarks of Rubrik. So we are looking at all avenues going forward to make it easier for our customers to adopt Rubrik, consume Rubrik because we are selling is only 5% of my job, 95% of my job is to ensure customer delight, the first use experience, repeated user experience, expansion experience and providing end-to-end cyber resilience.