Rubrik (RBRK) Q1 2026: Identity Resilience Drives 28% Large-Customer Growth as Platform Expands
Rubrik’s Q1 results highlight surging demand for unified data and identity resilience, with platform adoption expanding across large enterprise customers. The company’s focus on cyber recovery speed and AI-readiness is translating into competitive wins and deeper wallet share, while its disciplined innovation approach positions Rubrik for durable growth. Guidance was raised as management sees a broad runway for its platform across data security and identity, even as it invests in next-generation initiatives like Annapurna for GenAI.
Summary
- Platform Expansion Accelerates: Rubrik’s integrated approach to data and identity resilience is fueling large-enterprise adoption and multi-product expansion.
- Innovation Engine Delivers: New product launches and cloud-native capabilities are driving market share gains over legacy and next-gen rivals.
- Outlook Raised on Durable Demand: Management signals confidence in sustained growth as cyber resilience becomes a top IT priority.
Performance Analysis
Rubrik delivered a standout Q1, surpassing all guided metrics on both top-line and profitability, underscoring the strength of its platform-led model in a crowded cybersecurity landscape. Subscription annual recurring revenue (ARR) reached $1.2 billion, with net new ARR of $89 million, reflecting robust demand for Rubrik’s cyber resilience solutions. Notably, customers generating $100,000 or more in subscription ARR rose 28% year-over-year, now accounting for 85% of total subscription ARR, a clear sign of deepening enterprise penetration and wallet share expansion.
Profitability and cash generation also improved materially. Subscription ARR contribution margin swung to a positive 8% over the past year, a more than 1,800 basis point improvement, as scale and cost discipline took hold. Free cash flow was positive $33 million, reversing a loss in the prior year period. Revenue growth benefited from both recurring and non-recurring sources, with cloud transformation tailwinds adding an extra lift this quarter. Gross margin improved to 80.5%, driven by scale and operational efficiencies, though management expects normalization within the 75% to 80% long-term range.
- Large-Customer Penetration Drives Growth: 2,381 customers now exceed $100,000 in ARR, up 28%, representing the majority of Rubrik’s recurring revenue base.
- Cloud and SaaS Expansion: Cloud ARR grew 60%, reflecting successful migration of enterprise workloads and broad adoption of Rubrik Security Cloud.
- Operating Leverage Materializes: Subscription ARR contribution margin improved over 1,800 basis points YoY, supporting positive free cash flow at scale.
Rubrik’s land-and-expand model, which leverages initial wins to drive cross-sell and upsell of additional security functionality, continues to pay off, with expansion contributing more than 30% of net retention. Management’s raised guidance signals confidence in both market demand and execution, even as it invests in R&D and go-to-market for new innovation vectors.
Executive Commentary
"We are the only vendor that provides comprehensive cyber resilience across data and identity, both across risk and remediation. And because of our unique offering and platform approach, we are winning customers and we are winning vast majority of the deal in head to head competition."
Bipul Sinha, CEO, Chairman, and Co-founder
"Our differentiated land and expand model benefits from multiple avenues to gain new customers and grow our footprint after the initial contract. Expansion occurs through increased data and existing applications, securing more applications, or adding more security functionality."
Karen Chowdhury, Chief Financial Officer
Strategic Positioning
1. Unified Data and Identity Platform
Rubrik’s core differentiation lies in its unified platform that brings together data security and identity resilience, enabling customers to manage risk and recovery across both domains. The native integration of data and identity security—now including orchestration of hybrid cloud recovery for Active Directory and EntraID—has become a decisive factor in competitive wins, as enterprises increasingly require rapid, clean recovery from cyber attacks.
2. Innovation Portfolio and S-Curve Management
Rubrik employs a deliberate dual-track innovation strategy, balancing “forward motion” (scaling core data protection) with “lateral motion” (incubating new products like DSPM and Annapurna for GenAI). This approach has enabled successful launches, such as M365 protection and the new identity recovery solution, while positioning Rubrik to capitalize on emerging trends in AI-driven security and compliance.
3. Cloud-Native and Multicloud Expansion
Recent product launches have extended Rubrik’s reach across all major hyperscalers, including AWS RDS, Google Cloud, and Oracle Cloud Infrastructure. Rubrik’s “assumed breach” approach, which combines data security posture management (DSPM) and cyber recovery, is resonating with enterprises replatforming for AI and cloud transformation, as evidenced by high-profile wins in financial services, healthcare, and quantum computing sectors.
4. Land-and-Expand Model Drives Durable Growth
Rubrik’s business model is anchored in a land-and-expand motion, where initial wins are systematically broadened through cross-sell of additional products and increased data coverage. Expansion contributed more than 30% of net retention this quarter, and the company’s ability to deliver both cost savings and security outcomes is driving deeper enterprise adoption.
5. Long-Term Vision Anchored in Platform Scale
Leadership consistently frames Rubrik as building a “100-year company” that will lead at the intersection of data, security, and AI. The company’s willingness to invest in multi-year initiatives (such as Annapurna for GenAI) and to experiment with packaging and go-to-market for new products reflects a disciplined, platform-first mindset rather than a focus on short-term wins.
Key Considerations
Rubrik’s Q1 demonstrates the strategic value of its platform approach in a market where customers are overwhelmed by point solutions and legacy vendors. The company’s ability to deliver rapid recovery, integrate identity security, and support cloud transformation is driving both new logos and expansion. However, as Rubrik invests in new innovation vectors and scales its go-to-market, investors should monitor execution risks and the evolving competitive landscape.
Key Considerations:
- Identity Opportunity Still Early: While identity resilience is a major focus, it remains in early-stage adoption, with runway for future growth as the market matures.
- Expansion Tailwinds Moderating: Management expects net retention rates to gradually moderate as initial lands become larger and the model transitions to more normalized expansion dynamics.
- Cloud Transformation Accounting Tailwind: Non-recurring revenue from material rights related to cloud migration provided a temporary lift to growth this quarter, which may not persist at the same level.
- Disciplined R&D and GTM Investment: Rubrik is committing resources to both R&D and targeted go-to-market expansion, especially in lateral innovation bets, balancing growth with profitability improvement.
- Platform Stickiness and Cross-Sell: The more Rubrik products a customer adopts, the greater the platform’s value, driving long-term stickiness and competitive defensibility.
Risks
Rubrik faces execution risk as it scales new identity and AI-driven offerings, with integration and go-to-market complexity increasing. The competitive landscape remains intense, with both legacy and next-gen vendors vying for share. Non-recurring revenue tailwinds from cloud transformation may normalize, potentially impacting growth optics. Macroeconomic uncertainty and enterprise IT budget scrutiny could also affect large deal timing or expansion rates.
Forward Outlook
For Q2, Rubrik guided to:
- Revenue of $281 million to $283 million (up 37% to 38% YoY)
- Non-GAAP subscription ARR contribution margin of 4.5% to 5.5%
- Non-GAAP EPS of negative $0.35 to negative $0.33
For full-year 2026, management raised guidance:
- Subscription ARR of $1.38 billion to $1.388 billion (26% to 27% growth)
- Total revenue of $1.179 billion to $1.189 billion (33% to 34% growth)
- Non-GAAP subscription ARR contribution margin of approximately 6%
- Free cash flow of $65 million to $75 million
Management highlighted ongoing R&D and GTM investment, expected seasonality with stronger growth in the second half, and continued focus on innovation in identity and AI security.
- Seasonal margin trough expected in Q3, with improvement in Q4
- Full-year guidance reflects confidence in durable demand and strategic execution
Takeaways
Rubrik’s platform strategy and rapid innovation are propelling it into a leadership position in the evolving cyber resilience market.
- Identity and Data Security Convergence: Rubrik’s integration of identity resilience into its platform is expanding its addressable market and driving competitive differentiation.
- Profitable Growth at Scale: Material improvement in margins and cash flow demonstrates the leverage of the model, even as Rubrik invests in new innovation vectors.
- Watch for Innovation Execution: Success in scaling new products like Annapurna for GenAI and identity recovery will be key to sustaining long-term growth and platform relevance.
Conclusion
Rubrik’s Q1 results underscore the growing importance of unified data and identity resilience as enterprises modernize for AI and cloud. The company’s platform-led growth, expanding large-customer base, and disciplined innovation investments position it for continued outperformance, though investors should monitor execution on new product bets and the normalization of non-recurring revenue tailwinds.
Industry Read-Through
Rubrik’s momentum validates a major shift in cybersecurity from fragmented point tools to unified platforms that integrate data and identity security. The company’s success in winning large enterprise deals and delivering rapid cyber recovery highlights rising customer demand for comprehensive, AI-ready resilience. Legacy backup and niche identity vendors face increasing pressure as customers consolidate spend and seek end-to-end solutions. The broader cybersecurity industry is likely to see continued platformization, with data and identity convergence becoming table stakes for winning in the enterprise segment.