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This Month's Featured Article Rubrik's Selloff Could Be Cybersecurity's Hidden OpportunitySubmitted by Leo Miller. Publication Date: 3/17/2026. 
Key Points - Cybersecurity stock Rubrik is down big in 2026, similar to names across the software industry.
- The company's latest earnings were much better than expected, and it looks poised to turn a profitability corner in 2026.
- While AI disruption fears fill the market, Rubrik's importance to its clients fortifies its position.
- Special Report: The Biggest IPO Ever: Claim Your Stake Today
Rubrik (NYSE: RBRK) is a different kind of cybersecurity company, generating impressive growth as customers recognize the value of its differentiated approach. While most cybersecurity firms focus on preventing threats—building firewalls or managing user access—Rubrik takes a different path. Rubrik is fundamentally different. Instead of trying to prevent every cyberattack, the company's solutions provide value after an incident occurs. Its Preemptive Recovery Engine builds a detailed understanding of clients' data over time so that, after an attack, clients can recover data and resume operations as quickly as possible. The goal is to move recovery time from weeks to days, helping clients minimize the revenue loss a cyberattack creates. A $2 gold stock is said to quietly control what may be the largest gold deposit in the world - worth nearly $1 trillion. According to Jim Rickards, an announcement is expected around April 15 that could bring this historic discovery into public view. See the full details on this $2 gold stock before April 15 In this sense, Rubrik's solutions are a form of "cybersecurity insurance." You don't want to have to use it, but if something goes wrong, you'll be glad it's there. In its latest earnings report, Rubrik delivered another impressive quarter. Yet the tech stock is down more than 30% in 2026, setting up a potential opportunity for investors in this unique cybersecurity name. RBRK Smashes Forecasts on Sales and EPS In its Q4 fiscal year 2026 (FY2026), Rubrik posted revenue of $378 million, representing 46% growth. Note that the company's fiscal reporting period is several quarters ahead of the calendar period. The firm's top-line growth well exceeded expectations of roughly 33%. Adjusted earnings per share (EPS) were $0.04, versus a $0.18 loss in the same period a year earlier. Analysts had expected an $0.11 loss, so the swing into positive territory surprised the market. For the full year, adjusted loss per share was $0.01. The company remains unprofitable on an unadjusted basis, but its quarterly GAAP loss per share improved from $0.61 to $0.43. For the full year, the GAAP loss narrowed significantly from $7.48 to $1.78. Looking into its new fiscal year, Rubrik expects growth of 21%–22%, compared with 48% in FY2026. It also expects to be profitable on an adjusted basis for the full year for the first time, forecasting adjusted EPS between $0.07 and $0.27. Guidance on both figures exceeded expectations. Rubrik Pushes Back Hard on AI Disruption Risk One of the main reasons for the significant drop in RBRK shares during 2026 is the same concern affecting much of the software industry: artificial intelligence (AI) disruption risk. An analyst asked whether data recovery and resilience could be "meaningfully automated by AI over time," potentially threatening Rubrik's core business. CEO Bipul Sinha said, "I don't believe that we have any disruption risk at all from AI." That view is absolute, but there are several compelling reasons Rubrik has defenses against AI-driven disruption. First, Rubrik serves as the "system of record of last resort around data and identity." When other cybersecurity defenses fail, Rubrik is the system clients rely on to restore order. That capability can prevent customers from losing significant revenue and trust. Clients could try to lower costs by building recovery capabilities in-house or by trusting an emerging AI provider, but that approach carries substantial risk if it fails. With so much at stake, cutting corners on the "cybersecurity insurance" Rubrik provides could be very costly. Importantly, Rubrik charges based on the amount of data clients protect, not on headcount. That contrasts with "seat-based" models that charge per user. As a result, Rubrik's revenue isn't directly reduced if clients use AI to replace employees; deploying AI typically increases data usage, which could make Rubrik's platform more important. Still, the claim that Rubrik faces no AI disruption risk is likely short-sighted. RBRK Could Be Set Up for a Meaningful Recovery After Recent Weakness Rubrik has a mission-critical product, strong growth, and improving profitability. Notably, stock-based compensation (SBC) was $329 million in FY2026. Because SBC is paid in equity rather than cash, it can inflate reported free cash flow; the company reported free cash flow of $238 million in FY2026 in part for that reason. The good news is SBC fell sharply from $913 million in FY2025, a positive trend. Meanwhile, free cash flow rose more than tenfold from $21.6 million in FY2025. The MarketBeat consensus price target for Rubrik is near $91.50, implying more than 70% upside. Targets updated after the company's earnings release average $86, implying more than 60% upside. Overall, Rubrik's business appears well positioned, and its stock looks reasonably attractive after a significant sell-off in 2026. | 
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