Shares of Rubrik (RBRK) are surging in today’s trading after the cloud data management company delivered strong third-quarter results. Interestingly, cloud annual recurring revenue (ARR) rose by 53% year-over-year to $1.175 billion, while total revenue reached $350.2 million. This was well above Wall Street’s estimate of $320.5 million. In addition, non-GAAP earnings per share came in at $0.10, beating expectations of a loss.
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As a result, Wedbush, led by five-star analyst Dan Ives, kept its Buy rating and $120 price target as more companies prepare for possible security breaches. Indeed, with AI tools becoming more advanced, the risks to organizations grow, and Rubrik is benefiting from this shift. Other analysts responded positively too. For instance, William Blair’s Jason Ader upgraded the stock to Buy after what he called a “stellar beat and raise.”
Separately, during the earnings call, Rubrik CEO Bipul Sinha said that the company is now focused on becoming a leader in both security and AI operations. He also warned that AI agents, which are automated tools that handle sensitive tasks and data, operate at a scale and speed that companies are not fully ready to manage. Because of this, new strategies and controls are needed.
Is RBRK Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on RBRK stock based on 19 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RBRK price target of $114.63 per share implies 32.4% upside potential.
