Rubrik Inc (RBRK) Stock Forecast & Price Target

Rubrik Inc. has demonstrated significant operational improvement, as reflected by its operating margin of (11.2%), which exceeded expectations due to enhanced scale and efficiency. The company is projecting robust revenue growth, with estimates for FY27 raised to $1,437 million, representing approximately 25% year-over-year growth, and FY26 revenue forecasts increased to $1,153 million, or 30% year-over-year growth. Additionally, subscription revenue for Q4 reached $243.7 million, a 54% increase year-over-year, and the annual recurring revenue (ARR) grew 39% to $1,092.6 million, indicating strong customer adoption and retention.

Rubrik Inc. reported a significant decline in maintenance revenue, which fell approximately 52% year-over-year, contributing to concerns about the company's financial stability. The firm's ongoing struggle with profitability is further exacerbated by high sales and marketing expenses, alongside consistent operational losses. Although pro forma EPS exceeded expectations, there remains uncertainty surrounding the company's ability to secure budget allocations for data infrastructure and security, hindering its growth potential in an evolving market.