Rubrik Rallies 20% YTD: Should You Buy, Sell, or Hold the Stock?

Rubrik RBRK shares have gained 19.6% in the year-to-date period compared with the broader Zacks Computer and Technology sector’s return of 22.8%. The underperformance can be attributed to the challenging macroeconomic conditions and intense competition in the cybersecurity market.However, the company has outperformed the Zacks Internet - Software sector, which has increased 18.2% in the year-to-date period.  The outperformance can be attributed to Rubrik’s growing client base and increased demand for its data security solutions.In the second quarter of fiscal 2026, Rubrik’s subscription ARR surpassed $1.25 billion, growing 36% year over year, with net new subscription ARR reaching $71 million in the reported quarter. These highlight strong customer adoption and expansion.Rubrik Stock's PerformanceImage Source: Zacks Investment ResearchRubrik Benefits From Expanding ClienteleRubrik’s expanding clientele, which includes major industry players such as Amazon AMZN, CrowdStrike CRWD and Alphabet, has been a key catalyst.In the second quarter of fiscal 2026, the company has seen a 27% year-over-year increase in customers with more than $100K in subscription ARR, reaching 2,505 customers as of July 31, 2025. Rubrik’s cloud ARR grew 57%, reaching $1.1 billion, driven by the adoption of its Rubrik Security Cloud platform.In July 2025, Rubrik announced a major expansion of its cloud data protection portfolio. The company introduced new support for Amazon DynamoDB and launched a unique cyber resilience solution for Amazon RDS for PostgreSQL. The introduction allows businesses to achieve effective, policy-driven data protection with unchangeable backups, centralized visibility across Amazon Web Services accounts and regions, and flexible, cost-effective storage options. By simplifying complex backup and recovery processes, Rubrik’s unified platform improves cyber resilience, lowers operational costs and ensures compliance for essential cloud databases.Further expanding its clientele in September, Rubrik announced a broader integration with CrowdStrike. This combines Rubrik Identity Resilience with CrowdStrike’s Falcon platform. It allows for real-time detection and surgical rollback of harmful identity changes, strengthening unified identity security.RBRK Benefits From Expanding PortfolioRubrik’s expanding portfolio has been a major growth driver of its success. The company in September 2025 announced the launch of Rubrik Okta Recovery at Oktane 2025, providing automated, immutable backups and granular, in-place recovery for Okta Identity Provider environments. This solution extends Rubrik’s identity protection beyond Active Directory and Entra ID, enabling organizations to quickly recover critical identity data and configurations.Further expanding its portfolio in June, Rubrik expanded its portfolio by announcing the integration of Advanced Micro Devices AMD EPYC processors across its platform. The company is using Advanced Micro Devices technology to provide solutions that are affordable, ready for AI, and energy-efficient for its enterprise customers. Advanced Micro Devices’ high-performance processors enable Rubrik to enhance computing efficiency and scalability across its platform.Acquisitions have also played an important role in expanding Rubrik’s portfolio. In the second quarter of fiscal 2026, Rubrik acquired Predibase to speed up the use of agentic AI. This gives organizations a platform to easily customize models based on their data and run them on an optimized inference stack. This approach improves accuracy, lowers costs, and automates data governance.Rubrik’s Earnings Estimates Show Upward TrendRubrik’s strong demand for its data security solutions and growing client base are expected to benefit the company’s top-line growth.For third-quarter fiscal 2026, RBRK expects the non-GAAP loss to be between 18 cents and 16 cents per share.The Zacks Consensus mark for earnings is currently pegged at a loss of 16 cents per share, which remained unchanged in the past 30 days, indicating a year-over-year increase of 23.81%For the third quarter of fiscal 2026, RBRK’s revenues are expected to be between $319 million and $321 million. The Zacks Consensus Estimate for third-quarter fiscal 2026 revenues is currently pegged at $320.18 million, indicating a year-over-year increase of 35.57%.Rubrik, Inc. Price and Consensus Rubrik, Inc. price-consensus-chart | Rubrik, Inc. QuoteRBRK Stock OvervaluedRubrik’s stock is currently trading at a premium, as suggested by the Value Score of F.In terms of the forward 12-month Price/Sales ratio, RBRK is trading at 10.65, higher than the broader Zacks Computer & Technology sector’s 6.90.Price/Sales (F12M)Image Source: Zacks Investment ResearchConclusionRubrik’s expanding clientele, driven by strong cyber recovery and resilience solutions and a rich partner base, improves its competitive position in the cybersecurity market.Rubrik stock currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. 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(AMZN): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report CrowdStrike (CRWD): Free Stock Analysis Report Rubrik, Inc. (RBRK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks