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Rubrik to Post Q2 Earnings: Should You Buy the Shares or Steer Clear?

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Rubrik (RBRK - Free Report) is scheduled to report second-quarter fiscal 2025 results on Sept. 9.

For the fiscal second quarter, RBRK expects revenues in the range of $195-$197 million.

The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $195.58 million.

The consensus estimate for fiscal second-quarter earnings is pegged at a loss of 49 cents per share, unchanged in the past 30 days.

Rubrik, Inc. Price and EPS Surprise

 

Rubrik, Inc. Price and EPS Surprise

Rubrik, Inc. price-eps-surprise | Rubrik, Inc. Quote

 

Let’s see how things have shaped up for RBRK prior to this announcement:

Factors to Note for Rubrik

Rubrik’s second-quarter performance is expected to have benefited from its growing client base and increased demand for its data security solutions.

Following a robust fiscal first-quarter performance, wherein subscription revenues surged 59% year over year to $172.2 million, Rubrik is set to maintain strong momentum driven by its strong partner base and increasing adoption of its solutions.

Rubrik’s expanding clientele, which includes major industry players like Crowdstrike (CRWD - Free Report) , Kyndryl (KD - Free Report) and Alphabet’s (GOOGL - Free Report) cloud business, Google Cloud, is likely to have driven growth during the fiscal second quarter.

In the first quarter of fiscal 2025, RBRK announced its partnership with CrowdStrike to enhance data security by integrating the Rubrik Security Cloud with CrowdStrike’s Falcon XDR platform, enabling faster detection and prevention of attacks on sensitive data. Benefits from this partnership are likely to be reflected in the to-be-reported quarter’s performance.

Rubrik also announced a global strategic alliance with Kyndryl to co-develop and launch Kyndryl Incident Recovery with Rubrik, a fully-managed solution offering data protection, cyber incident recovery and disaster recovery for cloud and on-premises workloads. This partnership is expected to strengthen Rubrik’s position in the market and attract additional clientele in the next quarter.

In August, the company announced a new partnership with Mandiant, part of Alphabet’s Google Cloud, integrating threat intelligence and incident response to enhance cyber recovery and resilience. The integration with Google Cloud’s expertise and capabilities is expected to have amplified Rubrik’s growth further and solidify its role as a leading provider of data security solutions.

However, Rubrik faces stiff competition from data management and protection vendors, including Cohesity, Commvault, Veeam, IBM and Dell EMC, which is expected to have negatively impacted top-line growth for the to-be-reported quarter.

Rubrik currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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