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Rubrik (NYSE:RBRK) is making waves. Shares jumped 25.6% at 11:59 a.m. after the cybersecurity firm crushed fiscal Q4 2025 expectations, putting its early-year slump in the rearview mirror. Subscription revenue soared 54% year over year to $244 million, blowing past management's forecast and reaffirming Rubrik's momentum in the data security space. Analysts are taking noteBMO Capital Markets raised its price target to $77, citing accelerating subscription annual recurring revenue (ARR) growth and stronger-than-expected free cash flow. Others are even more bullish, with Truist setting a $90 target and Piper Sandler going for $87, signaling confidence in Rubrik's expanding cloud-based security business.
This stock isn't just reboundingit's outpacing competitors. Rubrik's ARR hit nearly $1.1 billion, up 39% from last year, topping industry rival SentinelOne. The real kicker? It's now cash-flow positive, generating $21.6 million in free cash flow for fiscal 2025an impressive turnaround from negative $24.5 million a year ago. Management is doubling down on growth, forecasting a 24% jump in ARR to $1.35 billion and projecting up to $65 million in free cash flow for fiscal 2026. That's back-to-back years of profitability, a rarity in the cybersecurity space.
With ransomware threats escalating, Rubrik is positioning itself as the go-to player in enterprise data protection. Its rapid transition to cloud-based security solutions is drawing investor attention, and Wall Street sees more upside. If it keeps this pace, Rubrik isn't just a turnaround storyit's shaping up to be one of the hottest growth plays in cybersecurity.
This article first appeared on GuruFocus.