Shares of Rubrik Inc. and SentinelOne Inc. both fell in late trading today despite the two cybersecurity companies posting fiscal second-quarter beats on revenue and earnings.
Rubrik dropped about 8%, a reaction that came even as the security and AI operations company lifted its outlook for the full year. A soft annual profit forecast saw SentinelOne shares drop nearly 4%.
For the quarter that ended on July 31, Rubrik reported adjusted earnings of 20 cents per share, reversing a loss of three cents per share in the same quarter a year earlier, on revenue of $427.3 million, up 38% year-over-year. Analysts were expecting four cents per share on revenue of $396.3 million.
Subscription revenue came in at $407.2 million, up 37% year-over-year, and subscription annual recurring revenue reached $1.66 billion as of July 31, up 33% from a year earlier. Cloud grew faster still, at 39%, to $1.48 billion. Rubrik ended the quarter with 3,084 customers on subscription plans worth $100,000 or more, up 23%.
Rubrik posted a net loss of $61.8 million, or 30 cents per share, narrowing from $95.9 million and 49 cents a year earlier. Subscription annual recurring revenue contribution margin, a gauge of operating leverage the company watches closely, climbed to 14% from 9.4%. Free cash flow was $65.7 million, a 15% margin. Rubrik generated $76.8 million from operations in the quarter and finished it holding $1.75 billion in cash and short-term investments.
Business highlights in the quarter included Rubrik introducing Rubrik AI, an agentic layer running across Rubrik Security Cloud and Rubrik Agent Cloud, and extending Agent Cloud to Anthropic PBC’s Claude Code. Five global systems integrators signed on to deploy that work under an alliance called Project Hourglass, Cognizant Technology Solutions Corp. and Deloitte among them.
Rubrik also bought identity startup Strata.io, whose failover and reconstruction technology it now sells as Identity Continuity and Identity Roll Forward. The company put £375 million ($500 million) into a U.K. expansion and named London its headquarters for Europe, the Middle East and Africa.
“Mythos and frontier AI models have fundamentally changed the cybersecurity landscape,” co-founder and Chief Executive Bipul Sinha said in the company’s earnings release. “This new reality demands not only machine speed cyber recovery but also autonomous runtime AI agent security.”
Guidance for the third quarter calls for revenue of $429 million to $431 million and adjusted earnings of seven to nine cents per share. Rubrik lifted its full-year revenue range to $1.685 billion to $1.693 billion from the $1.638 billion to $1.648 billion it gave in June, ahead of the $1.64 billion analysts had modeled. Full-year adjusted earnings guidance jumped to 47 to 53 cents per share from 25 to 35 cents.
That was not enough for investors. Rubrik has now beaten estimates in three straight quarters and seen its shares fall in late trading each time. The stock closed the regular session more than 11% higher, at an all-time high.
SentinelOne’s quarter also came in ahead of Wall Street. The company reported revenue of $292 million, up 21% from $242.2 million a year earlier, on adjusted earnings of eight cents per share, double the four cents it booked in the same quarter of fiscal 2026. Both figures were ahead of analyst expectations of seven cents per share and revenue of $290 million.
Annual recurring revenue grew 22%, to $1.218 billion, as of July 31. SentinelOne finished the quarter with 1,715 accounts worth $100,000 or more in annual recurring revenue, 13% more than a year ago.
Restructuring costs pushed the unadjusted net loss out to $93.4 million, or 27 cents per share, from $72 million and 22 cents a year earlier. The company booked $24.4 million in restructuring charges in the quarter, against $3.9 million a year earlier, following the roughly 8% workforce reduction it announced in May. Adjusted operating margin came in at 10%, against 2%.
Chief Executive Tomer Weingarten pointed to accelerating platform adoption and to what he called “undisputed technology leadership for both AI for Security and Security for AI.” Sonalee Parekh, the chief financial officer, said SentinelOne exceeded all of its guided metrics in the quarter.
For the third quarter, SentinelOne expects revenue of $309 million to $311 million and adjusted earnings of eight to nine cents per share. It lifted full-year revenue guidance to a range of $1.202 billion to $1.207 billion, a shade above the $1.2 billion analysts had modeled, and raised the adjusted operating income range to $124 million to $128 million.
The profit guidance went the other way. Full-year adjusted earnings are now pegged at 30 to 32 cents per share, down from the 32 to 38 cents forecast in May and short of the roughly 35 cents analysts had expected.
SentinelOne shares had closed the regular session up almost 11%. The profit guidance landed a day after CrowdStrike Holdings Inc. and Okta Inc. both beat on the second quarter and raised their outlooks, sending each stock sharply higher in late trading.