Rubrik (RBRK) is an under-the-radar cyber resilience leader that just announced a game-changing $100 million acquisition of AI startup Predibase. With this acquisition, Rubrik aims to accelerate the adoption of enterprise AI agents, promising faster, more cost-effective, and more secure AI deployments for its customers.

But will this high-stakes AI bet propel Rubrik to the front of the cybersecurity pack — or is the market getting ahead of itself? As Rubrik stock hovers near its highs, is Rubrik a buy, sell, or hold for July 2025? Let’s find out!

Rubrik’s Recent Financial Performance

Rubrik (RBRK) is a comprehensive cyber resilience company, specializing in data protection, backup and recovery solutions, and advanced security analytics. The Palo Alto-based company went public in 2024 and has quickly established itself as a formidable player in the enterprise data security space, serving customers across cloud and on-premise environments with its machine learning-powered platform.

The stock has delivered a remarkable performance, trading in a 52-week range of $28.60 to $103. Its shares have posted an impressive year-to-date gain of about 30% and a staggering 52-week gain of nearly 185%. 

Rubrik delivered impressive first-quarter 2025 results that significantly exceeded Wall Street expectations. The company reported revenue of $278.5 million, representing a robust 49% year-over-year increase and surpassing analyst estimates of $260.4 million by 7%. Even more noteworthy, Rubrik posted an earnings per share loss of $0.15, substantially better than the expected loss of $0.32.

The company’s subscription-focused business model continues to gain traction, with subscription revenue reaching $265.7 million, up 54% year-over-year. Annual recurring revenue (ARR) hit $1.181 billion, growing 38% year-over-year and exceeding consensus estimates. Perhaps most encouraging for long-term investors, Rubrik achieved positive free cash flow of $33 million, demonstrating improving operational efficiency.

Rubrik’s Growth Strategy and Strategic Developments

Rubrik’s growth strategy centers on strategic acquisitions that enhance its AI capabilities and expand its cyber resilience platform. On June 25, the company announced its agreement to acquire Predibase, an AI startup specializing in generative AI model fine-tuning, for a reported range between $100 million and $500 million. This acquisition positions Rubrik to accelerate customer AI agent adoption through integration with major cloud platforms including Amazon Bedrock, Azure OpenAI, and Google Agentspace.

Earlier in 2025, Rubrik also acquired DevOps security vendor BackRightUp, expanding its capabilities in code repository protection and DevOps data security. Four months post-integration, the acquisition has shown positive results, supporting Rubrik’s “Code to Cloud” cyber resilience strategy and strengthening its position in protecting development lifecycle data.

Also in June 2025, Rubrik successfully raised $1 billion through a convertible senior notes offering. The company plans to use the net proceeds of approximately $980 million for debt repayment, future acquisitions, and general corporate purposes, providing significant financial flexibility for continued growth initiatives.

This capital raise positions Rubrik with substantial resources to pursue additional strategic acquisitions and expand its AI-powered cyber resilience capabilities in a rapidly consolidating market.

Analyst Views: Wall Street Is Positive on RBRK 

Looking ahead, analysts project continued improvement in Rubrik’s earnings. For the current quarter, the average earnings estimate stands at a loss $0.71 per share, showing a projected 26.80% improvement compared to the prior-year loss of $0.97. The next quarter is expected to see further improvement with an estimated loss of $0.66, narrowed from $0.70. 

Analysts are very optimistic about Rubrik’s future, with 21 analysts surveyed giving it a consensus “Strong Buy” rating. The average price target is approximately $108, which implies about 27% upside from its current price.

Conclusion

Based on its financial performance, strategic positioning, and market opportunity, the stock presents a compelling buy opportunity for investors seeking exposure to the rapidly growing cybersecurity industry. Personally, I believe Rubrik shares are headed higher over the next 6-12 months. The company’s strong Q1 2025 results, strategic acquisitions that enhance AI capabilities, and a $1 billion war chest for continued expansion create a favorable risk-reward profile. While the stock has already had a nice run, the 27% upside implied by analyst targets feels achievable given the company’s execution track record and the massive tailwinds in cybersecurity.