Rubrik Inc (RBRK) Stock Forecast & Price Target

Rubrik Inc. has demonstrated strong operational improvements, with the operating margin significantly better than estimates at (11.2%), reflecting enhanced scale and efficiency. The company has increased its revenue projections for FY27 to $1,437 million, representing a robust 25% year-over-year growth, while FY26 revenue forecasts also increased to $1,153 million, signifying a 30% y-o-y growth with an improved operating margin. Additionally, the impressive growth in subscription revenue by 54% year-over-year in Q4 and the substantial increase in customers with high subscription ARR illustrate Rubrik's successful market penetration and demand for its services.

Rubrik Inc. reported a significant decrease in maintenance revenue, with a year-over-year decline of approximately 52%, highlighting ongoing challenges in sustaining recurring revenue streams. The company's persistent lack of profitability is a key concern, primarily attributed to high sales and marketing expenses, leading to consistent large losses on its income statement. Additionally, while the pro forma EPS of ($0.18) was better than expected, the uncertainty surrounding its ability to capture data infrastructure and security budgets raises questions about the sustainability of its growth and future market position.