Rubrik (RBRK) Q3: Rapid Revenue Growth Tests Bearish Profitability Narrative

Rubrik (RBRK) just posted its Q3 2026 scorecard, with quarterly revenue at about $309.9 million and basic EPS of roughly -$0.49, while trailing twelve month revenue sits near $1.1 billion against basic EPS of about -$2.34. The company has seen revenue move from $187.3 million and basic EPS of -$11.48 in early 2025 to $309.9 million and -$0.49 in the latest quarter, and about $679.5 million and -$16.19 on a trailing basis in early 2025 to $1.1 billion and -$2.34 today. This sets up a story of rapid top line expansion paired with still heavy, but narrowing, per share losses that keep margins firmly in the red.

See our full analysis for Rubrik.

With the latest results on the table, it is worth lining these numbers up against the dominant market narratives to see which bullish and bearish stories actually match the margin reality.

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Losses Narrow but Stay Deep in Red

• Net income excluding extra items has moved from about -$732.1 million in early 2025 to roughly -$443.8 million on a trailing basis, which still represents heavy losses even as the dollar amount has become less extreme.
• Bears focus on Rubrik remaining unprofitable over the next three years, and the recent numbers still back that worry:
  • Trailing 12 month basic EPS sits near -$2.34 versus about -$16.19 a year earlier, so the business is still firmly loss making even though per share losses have moderated.
  • Quarterly net income excluding extra items was about -$95.9 million in the latest period compared with -$176.9 million in mid 2025, which is an improvement in direction but far from the positive margins bears want to see.

Rubrik’s shrinking losses may not be enough to satisfy skeptics who see years of red ink ahead, but the numbers are starting to test how long that bearish script can run. 🐻 Rubrik Bear Case

Revenue Growth Outpaces the Broader Market

• On a trailing 12 month basis, revenue has climbed from roughly $679.5 million in early 2025 to about $1.1 billion, and that 17.1 percent annual growth rate is running ahead of the 10.6 percent cited for the wider US market.
• Supporters argue that Rubrik’s cybersecurity focus and products like Rubrik Security Cloud and Annapurna can help sustain that top line momentum:
  • Analysts are expecting revenue to grow around 17.2 percent per year in the near term and roughly 26.2 percent annually over the next three years, which leans heavily on the idea that cyber resilience and AI driven data security will keep winning budget.
  • Consensus commentary also highlights strategic partnerships, such as with Microsoft for Azure and M365, as levers to extend that current $1.1 billion revenue base into a larger total addressable market.

Bulls view Rubrik’s double digit growth as early evidence that its security cloud strategy is gaining traction, and they are watching whether that $1.1 billion revenue base can compound fast enough to eventually overpower today’s losses. 🐂 Rubrik Bull Case

Premium Valuation with Thin Safety Net

• The stock trades at a price to sales ratio of 15.7 times, well above the peer average of 9.1 times and the broader US software industry at 5 times, even though the DCF fair value of about $86.24 is almost identical to the current $86.27 share price.
• Critics point out that paying this kind of premium while equity is negative and profits are absent leaves little room for missteps:
  • Negative shareholders’ equity is flagged as a major balance sheet risk, meaning the company’s obligations already sit above its recorded net assets even as cumulative net income over the last year remains around -$443.8 million.
  • At the same time, analysts still see upside with a price target near $115.05, so any slowdown from that 17.1 percent revenue growth pace could quickly challenge the idea that Rubrik deserves to trade far richer than the average software name.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Rubrik on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A great starting point for your Rubrik research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Explore Alternatives

Rubrik’s rapid growth comes with deep, ongoing losses, negative equity and a rich valuation that leaves little cushion if execution or demand stumbles.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.