Cybersecurity is one of the sectors we’ve already discussed as key beneficiary from AI. That’s because AI dramatically increases both the number of systems that can be attacked and the speed at which damage can spread.

Companies are connecting large language models to internal data, databases, code repositories, cloud infrastructure, SaaS applications, and operational systems.

At the same time, AI agents are moving from passive assistants toward software that can actually take actions. They can modify files, query databases, deploy code, change permissions, call APIs, move data between systems, and interact with other agents without waiting for a human to approve every step.

That creates a much larger attack surface.

Every model connection, API permission, agent credential, data pipeline, and autonomous workflow becomes another potential entry point or failure point. Attackers can also use AI to automate reconnaissance, phishing, vulnerability discovery, social engineering, malware development, and lateral movement.

Historically, enterprise backups were mainly insurance against hardware failures, accidental deletion, or software problems. But modern ransomware operators understand that encrypting production data is much less effective if the victim can restore everything immediately. Sophisticated attackers therefore increasingly try to compromise the recovery infrastructure itself.

Prevention will remain important, but prevention alone becomes less sufficient as systems become more autonomous. Enterprises increasingly need to assume that some attacks, mistakes, or agent failures will get through. The critical question then becomes whether the company can identify exactly what changed, determine the last trusted state, contain the damage, and restore the environment quickly.

This is what Rubrik has specialized in. Rubrik started as an enterprise backup and recovery company, but the business has become much broader. Since then it’s increasingly positioned around cyber resilience.

Rubrik protects enterprise data, maintains immutable recovery points, analyzes whether those recovery points are secure, helps recover identity infrastructure, and is now extending the same architecture toward AI agents. Rubrik's identity security products are designed around detecting changes to identity infrastructure and restoring trusted identity state.

Revenue grew 39% in Q1 FY27 while sales and marketing expenses grew much more slowly. Subscription gross margins above 80% give the company substantial long-term margin potential if operating expenses continue scaling more slowly than revenue.

Free cash flow reached $73.6M in Q1 FY27, equivalent to roughly a 19% quarterly FCF margin. Management currently expects around $298M of free cash flow for FY27, or roughly an 18% margin.

They are reporting Q2 earnings next week, so we’ll see if they manage to translate that momentum into actual revenue and earnings acceleration. Right now, the stock is setting up just below its previous highs from May. Earnings could be the catalyst that propels it to new heights and triggers a breakout to all-time highs.