Rapid7 (NASDAQ:RPD) Releases 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.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. UBS Group reissued a “neutral” rating and set a $9.00 price objective on shares of Rapid7 in a report on Wednesday. Piper Sandler restated a “neutral” rating and issued a $10.00 price objective on shares of Rapid7 in a research report on Wednesday. Truist Financial reduced their price objective on shares of Rapid7 from $14.00 to $8.00 and set a “hold” rating on the stock in a research report on Wednesday. Jefferies Financial Group set a $9.00 price target on shares of Rapid7 in a research report on Wednesday. Finally, Barclays cut shares of Rapid7 from an “equal weight” rating to an “underweight” rating and decreased their target price for the stock from $18.00 to $15.00 in a report on Monday, January 5th. Two investment analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average price target of $14.08.

Rapid7 Price Performance

Shares of NASDAQ:RPD traded down $3.09 during trading on Wednesday, reaching $7.31. 2,978,018 shares of the company’s stock traded hands, compared to its average volume of 1,292,359. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 7.01. The company has a 50-day simple moving average of $14.00 and a 200-day simple moving average of $16.95. The firm has a market cap of $478.33 million, a PE ratio of 21.44 and a beta of 0.79. Rapid7 has a fifty-two week low of $7.38 and a fifty-two week high of $37.75.

Rapid7 (NASDAQ:RPD) last posted its quarterly earnings results on Tuesday, February 10th. The technology company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.40 by $0.04. The business had revenue of $217.39 million during the quarter, compared to the consensus estimate of $215.17 million. Rapid7 had a net margin of 2.61% and a return on equity of 67.30%. The company’s quarterly revenue was up .5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $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. As a group, analysts predict that Rapid7 will post 0.35 earnings per share for the current year.

Insider Buying and Selling at Rapid7

In related news, Director Jana Partners Management, Lp bought 41,545 shares of the business’s stock in a transaction dated Friday, November 28th. The shares were acquired at an average price of $15.71 per share, for a total transaction of $652,671.95. Following the purchase, the director owned 6,760,149 shares in the company, valued at $106,201,940.79. This trade represents a 0.62% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Thomas E. Schodorf acquired 6,300 shares of Rapid7 stock in a transaction dated Wednesday, November 26th. The shares were acquired at an average price of $15.70 per share, with a total value of $98,910.00. Following the completion of the transaction, the director owned 34,440 shares of the company’s stock, valued at approximately $540,708. This trade represents a 22.39% increase in their position. The SEC filing for this purchase provides additional information. In the last 90 days, insiders bought 67,345 shares of company stock valued at $1,025,202. Company 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 — Rapid7 reported $0.44 EPS vs. $0.40 estimate and revenue of ~$217M vs. ~$215M; full‑year 2025 revenue of $860M and ARR of $840M with strong operating cash flow and $130M free cash flow, supporting financial resilience. Rapid7 Announces Fourth-Quarter and Full-Year 2025 Financial Results
• Positive Sentiment: Full‑year non‑GAAP EPS guidance topped consensus — FY2026 non‑GAAP EPS guided to $1.50–$1.60 versus street ~$1.45, indicating management sees longer‑term margin improvement despite near‑term revenue pressure. Rapid7 outlines $835M–$843M 2026 revenue guidance
• Positive Sentiment: Product and partner momentum — new MDR for Microsoft, partnership with ARMO, industry recognitions (Gartner Leader) and 300+ patents bolster product competitiveness in AI‑driven security. These help underpin longer‑term ARR stability. Business highlights and partnerships
• Neutral Sentiment: Company PR / channel engagement — Rapid7 announced its 2026 Partner of the Year winners (marketing/partner momentum but limited immediate financial impact). Partner of the Year Awards
• Negative Sentiment: Q1 revenue and EPS guidance missed estimates — Q12026 revenue guided to $207–$209M (street ~$213M) and EPS $0.29–$0.32 vs. consensus ~$0.34, signaling expected near‑term softness and triggering multiple downgrades/target cuts. Guidance and Q1 outlook Stock reaction coverage
• Negative Sentiment: Analyst downgrades and price‑target cuts magnified downside — UBS, Scotiabank, Truist, Mizuho and others cut targets (many to $8–$12) or kept hold/neutral ratings; the wave of revisions reduces near‑term buy‑side conviction. UBS note Scotiabank cut Truist cut

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Headlands Technologies LLC purchased a new stake in shares of Rapid7 during the 2nd quarter valued at $44,000. Parallel Advisors LLC raised its stake in Rapid7 by 81.6% during the 4th quarter. Parallel Advisors LLC now owns 3,036 shares of the technology company’s stock valued at $46,000 after purchasing an additional 1,364 shares during the period. Los Angeles Capital Management LLC bought a new position in shares of Rapid7 during the 4th quarter valued at approximately $71,000. Tower Research Capital LLC TRC lifted its position in Rapid7 by 547.2% in the second quarter. Tower Research Capital LLC TRC now owns 8,530 shares of the technology company’s stock worth $197,000 after buying an additional 7,212 shares during the last quarter. Finally, Prudential Financial Inc. boosted its stake in shares of Rapid7 by 8.8% during the second quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company’s stock valued at $197,000 after purchasing an additional 690 shares during the period. 95.66% of the stock is owned by institutional investors and hedge funds.

Rapid7 Company Profile

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.