Rubrik Surges on Strong Q3 Results as AI Cyber Threats Fuel Demand

Rubrik (RBRK) rallied 18% in early trading Friday after reporting third-quarter financials that far exceeded Wall Street expectations. Analysts said the data-security provider is benefiting from a major uptick in enterprise demand as artificial intelligence increases the volume and sophistication of cyber threats.

Q3 Performance Exceeds All Expectations

Wedbush noted several standout metrics:

Cloud ARR: $1.175B, up 53% y/y, beating the prior period’s $1.064B
Total Revenue: $350.2M vs. $320.5M Street estimate and guidance of $319M–$321M
Non-GAAP EPS: $0.12, crushing expectations of ($0.17) and guidance of ($0.18)–($0.16)
Strong demand driven by cloud migration and AI-driven modernization

Wedbush maintained its Outperform rating and $120 price target.

Analysts Turn More Bullish After the Beat

Several firms highlighted Rubrik’s strengthening position in AI-era cybersecurity:

Wedbush

Sees “comprehensive cyber resilience” driving customer adoption
Notes accelerating cloud shift due to AI enterprise modernization

KeyBanc

Maintained Overweight rating
Trimmed price target to $113 from $117 due to broader peer-multiple compression

William Blair

Upgraded Rubrik to Outperform from Market Perform
Cited the company’s “stellar beat and raise”

Meanwhile, competitor Commvault Systems (CVLT) edged 0.2% lower following the report.

Rubrik Positions Itself as a Leader in AI Security and Operations

During the earnings call, CEO and co-founder Bipul Sinha emphasized the company’s evolving mission:

Key CEO Commentary

“Rubrik is entering the next era as the security and AI operations company.”
Rising AI agents introduce new enterprise risks — acting with superhuman speed, touching critical systems, and lacking guardrails.
Rubrik’s strategy remains focused on accelerating customers’ journey to AI enterprise, even as AI raises the cybersecurity stakes.

Why AI is Boosting Rubrik’s Growth

The surge in cyber threats tied to AI agents is pushing CIOs and CISOs to expand security budgets. Organizations are preparing for worst-case breach scenarios, driving:

Higher cloud data protection spending
Increased adoption of cyber-resilient infrastructure
Upgrades to security and recovery platforms like Rubrik

The company’s raised FY26 guidance further signals confidence in sustained demand.