Rapid7 (NASDAQ:RPD) Shares Gap Up on Strong Earnings

Rapid7, Inc. (NASDAQ:RPD) shares gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $11.61, but opened at $12.83. Rapid7 shares last traded at $14.2340, with a volume of 919,172 shares changing hands.

The technology company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.35 by $0.09. Rapid7 had a net margin of 2.61% and a return on equity of 34.35%. The firm had revenue of $210.88 million during the quarter, compared to analyst estimates of $208.23 million. During the same quarter in the previous year, the business posted $0.58 EPS. Rapid7’s revenue was down 1.5% on a year-over-year basis. Rapid7 has set its Q3 2026 guidance at 0.440-0.470 EPS.

Key Stories Impacting Rapid7

Here are the key news stories impacting Rapid7 this week:

• Positive Sentiment: Q2 earnings beat expectations. Rapid7 reported adjusted earnings of $0.44 per share, exceeding the $0.35 consensus estimate, while revenue of $210.9 million topped expectations of $208.2 million. Rapid7 Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Profit guidance was raised relative to estimates. Rapid7 forecast third-quarter adjusted EPS of $0.44–$0.47, above the $0.38 analyst consensus. The outlook supports the view that restructuring and a greater focus on core security offerings may improve operating efficiency. RPD Q2 Deep Dive
• Neutral Sentiment: Cash resources remain substantial. Rapid7 ended the quarter with approximately $425.6 million in cash and equivalents, although operating cash flow declined to $37.0 million. Rapid7 Announces Second Quarter 2026 Financial Results
• Negative Sentiment: Growth and profitability remain concerns. Second-quarter revenue fell 1.5% year over year, earnings declined from $0.58 per share in the prior-year period, and the company’s third-quarter revenue guidance of $208 million–$210 million is slightly below the $210.5 million consensus.
• Negative Sentiment: Analysts still see downside. Stephens raised its price target from $10 to $12 while maintaining an “equal weight” rating. Robert W. Baird lifted its target from $8 to $10 and kept a “neutral” rating. Both targets are below Rapid7’s recent trading level, signaling limited conviction despite the earnings beat. Benzinga Analyst Updates

Analyst Upgrades and Downgrades

RPD has been the subject of several analyst reports. Royal Bank Of Canada reiterated a “sector perform” rating and set a $12.00 price objective on shares of Rapid7 in a report on Tuesday. Stephens reaffirmed a “positive” rating on shares of Rapid7 in a research report on Tuesday. William Blair cut Rapid7 from an “outperform” rating to a “market perform” rating in a research note on Tuesday, April 28th. Stifel Nicolaus set a $13.00 price target on Rapid7 in a research note on Tuesday. Finally, Scotiabank restated a “sector perform” rating and set a $10.15 price target on shares of Rapid7 in a research note on Tuesday. Seventeen analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Reduce” and an average target price of $10.32.

Hedge Funds Weigh In On Rapid7

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. grew its position in shares of Rapid7 by 7.6% during the 4th quarter. Vanguard Group Inc. now owns 9,273,763 shares of the technology company’s stock valued at $140,961,000 after acquiring an additional 653,498 shares during the period. First Trust Advisors LP lifted its holdings in Rapid7 by 48.3% during the fourth quarter. First Trust Advisors LP now owns 2,326,056 shares of the technology company’s stock valued at $35,356,000 after purchasing an additional 758,009 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Rapid7 by 1.6% in the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,170,876 shares of the technology company’s stock valued at $40,716,000 after purchasing an additional 34,438 shares during the period. Geode Capital Management LLC grew its position in shares of Rapid7 by 5.7% in the fourth quarter. Geode Capital Management LLC now owns 1,462,653 shares of the technology company’s stock valued at $22,236,000 after purchasing an additional 78,448 shares during the period. Finally, Marshall Wace LLP increased its stake in shares of Rapid7 by 23.3% during the fourth quarter. Marshall Wace LLP now owns 1,404,686 shares of the technology company’s stock worth $21,351,000 after purchasing an additional 265,413 shares in the last quarter. Institutional investors and hedge funds own 95.66% of the company’s stock.

Rapid7 Stock Up 24.2%

The company has a debt-to-equity ratio of 1.69, a current ratio of 0.78 and a quick ratio of 0.78. The business’s 50 day moving average price is $9.24 and its 200 day moving average price is $7.95. The firm has a market cap of $963.62 million, a PE ratio of 41.20 and a beta of 0.97.

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.