Rapid7 (NASDAQ:RPD) Issues Q1 2026 Earnings Guidance

Rapid7 (NASDAQ:RPD) issued an update on its first quarter 2026 earnings guidance on Tuesday morning. The company provided EPS guidance of 0.290-0.320 for the period, compared to the consensus EPS estimate of 0.340. The company issued revenue guidance of $207.0 million-$209.0 million, compared to the consensus revenue estimate of $213.2 million. Rapid7 also updated its FY 2026 guidance to 1.500-1.600 EPS.

Rapid7 Price Performance

NASDAQ RPD traded down $0.23 during mid-day trading on Thursday, hitting $7.16. The stock had a trading volume of 899,583 shares, compared to its average volume of 1,408,437. The firm’s 50 day moving average is $13.83 and its 200 day moving average is $16.88. Rapid7 has a twelve month low of $7.16 and a twelve month high of $36.45. The company has a debt-to-equity ratio of 7.01, a current ratio of 1.19 and a quick ratio of 1.19. The stock has a market capitalization of $468.51 million, a price-to-earnings ratio of 19.88 and a beta of 0.79.

Rapid7 (NASDAQ:RPD) last released its earnings results on Tuesday, February 10th. The technology company reported $0.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.40 by $0.04. The business had revenue of $217.39 million during the quarter, compared to analyst estimates of $215.17 million. Rapid7 had a net margin of 2.72% and a return on equity of 55.81%. The company’s revenue for the quarter was up .5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.48 earnings per share. Rapid7 has set its FY 2026 guidance at 1.500-1.600 EPS and its Q1 2026 guidance at 0.290-0.320 EPS. Equities research analysts forecast that Rapid7 will post 0.35 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of equities analysts recently commented on the company. Scotiabank reduced their price objective on Rapid7 from $18.00 to $9.00 and set a “sector perform” rating on the stock in a research report on Wednesday. JPMorgan Chase & Co. reduced their target price on shares of Rapid7 from $22.00 to $20.00 and set a “neutral” rating on the stock in a research note on Wednesday, November 5th. Royal Bank Of Canada cut their price target on shares of Rapid7 from $16.00 to $12.00 and set a “sector perform” rating for the company in a report on Wednesday. Stephens decreased their price objective on Rapid7 from $19.00 to $12.00 and set an “equal weight” rating on the stock in a report on Wednesday. Finally, Truist Financial cut their target price on Rapid7 from $14.00 to $8.00 and set a “hold” rating for the company in a research note on Wednesday. Two investment analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and an average price target of $12.71.

Insider Activity

In other Rapid7 news, CEO Corey E. Thomas acquired 14,500 shares of the company’s stock in a transaction dated Monday, November 24th. The shares were acquired at an average price of $13.82 per share, for a total transaction of $200,390.00. Following the acquisition, the chief executive officer owned 595,066 shares in the company, valued at $8,223,812.12. The trade was a 2.50% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Mike Burns bought 2,000 shares of the business’s stock in a transaction dated Thursday, November 20th. The shares were acquired at an average cost of $13.80 per share, for a total transaction of $27,600.00. Following the transaction, the director directly owned 5,000 shares in the company, valued at approximately $69,000. This represents a 66.67% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last quarter, insiders have acquired 67,345 shares of company stock valued at $1,025,202. Insiders own 2.40% of the company’s stock.

Key Headlines Impacting Rapid7

Here are the key news stories impacting Rapid7 this week:

• Positive Sentiment: Q4 results beat consensus on the headline numbers: GAAP/non‑GAAP profitability improved and EPS of $0.44 topped estimates while revenue of ~$217M slightly exceeded forecasts — a near‑term earnings beat that supports valuation. Rapid7 Q4 Press Release
• Positive Sentiment: Solid cash profile: full‑year revenue $860M (+2% YoY), ARR $840M (stable), free cash flow ~$130M and total cash & equivalents + short‑term investments near $659M — gives the company runway to invest in product/AI initiatives. Full Year Results / Press Release
• Positive Sentiment: Product & partnerships momentum: management highlighted AI‑driven investments and partnerships (Microsoft MDR, ARMO, AWS integrations) and industry recognition (Gartner leader, patents) that support longer‑term competitive positioning. Company Highlights
• Neutral Sentiment: Mixed FY‑2026 guidance: management guided FY non‑GAAP EPS to $1.50–1.60 (above some estimates) but set revenue guidance of $835–843M, well below Street expectations — a mixed signal that leaves valuation dependent on margin delivery and execution. Seeking Alpha: Guidance
• Negative Sentiment: Weak near‑term guide: Q1 2026 EPS ($0.29–0.32) and revenue ($207–209M) are below consensus — the conservative Q1 guide is the primary catalyst for the intraday selloff. Q1 & FY 2026 Guidance
• Negative Sentiment: Multiple analyst downgrades and price‑target cuts this week (Barclays to $8 UW; Truist to $8; Scotiabank to $9; RBC/Mizuho lowered targets) are amplifying selling pressure and reducing near‑term sentiment. Benzinga: Analyst Actions
• Negative Sentiment: Underlying growth concerns: ARR was flat year‑over‑year and full‑year revenue growth was only ~2%, raising questions about how quickly Rapid7 can accelerate top‑line growth despite product/AI investments. QuiverQuant Summary

Institutional Trading of Rapid7

Institutional investors have recently modified their holdings of the stock. Prudential Financial Inc. boosted its holdings in shares of Rapid7 by 8.8% in the 2nd quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company’s stock valued at $197,000 after buying an additional 690 shares in the last quarter. Parallel Advisors LLC lifted its stake in Rapid7 by 81.6% in the fourth quarter. Parallel Advisors LLC now owns 3,036 shares of the technology company’s stock valued at $46,000 after buying an additional 1,364 shares during the last quarter. Headlands Technologies LLC acquired a new stake in shares of Rapid7 in the second quarter valued at approximately $44,000. Swiss National Bank increased its holdings in shares of Rapid7 by 1.8% in the 3rd quarter. Swiss National Bank now owns 112,000 shares of the technology company’s stock valued at $2,100,000 after acquiring an additional 2,000 shares during the period. Finally, Brevan Howard Capital Management LP increased its holdings in shares of Rapid7 by 12.6% in the 2nd quarter. Brevan Howard Capital Management LP now owns 28,719 shares of the technology company’s stock valued at $664,000 after acquiring an additional 3,209 shares during the period. Hedge funds and other institutional investors own 95.66% of the company’s stock.

About Rapid7

Rapid7, Inc is a publicly traded cybersecurity company headquartered in Boston, Massachusetts. Since its founding in 2000, the company has specialized in delivering cloud-based security data and analytics solutions designed to help organizations detect, investigate, and remediate cyber threats. Rapid7 operates under the NASDAQ symbol “RPD” and serves a broad range of industries, including technology, financial services, healthcare, retail, and the public sector.

The core of Rapid7’s offering is its Insight platform, a unified, cloud-native security operations and analytics suite.