Rapid7 (NASDAQ:RPD) Issues FY 2026 Earnings Guidance

Rapid7 (NASDAQ:RPD) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 1.500-1.600 for the period, compared to the consensus estimate of 1.450. The company issued revenue guidance of $835.0 million-$843.0 million, compared to the consensus revenue estimate of $869.7 million. Rapid7 also updated its Q1 2026 guidance to 0.290-0.320 EPS.

Rapid7 Stock Down 3.0%

Shares of RPD stock traded down $0.23 during trading hours on Thursday, reaching $7.16. The company had a trading volume of 899,583 shares, compared to its average volume of 1,408,437. The company has a market cap of $468.51 million, a price-to-earnings ratio of 19.88 and a beta of 0.79. The company has a debt-to-equity ratio of 7.01, a current ratio of 1.19 and a quick ratio of 1.19. Rapid7 has a 12 month low of $7.16 and a 12 month high of $36.45. The business has a fifty day simple moving average of $13.83 and a 200-day simple moving average of $16.88.

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

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on RPD. Barclays decreased their price target on Rapid7 from $15.00 to $8.00 and set an “underweight” rating for the company in a research report on Thursday. Zacks Research downgraded shares of Rapid7 from a “strong-buy” rating to a “hold” rating in a report on Tuesday, January 27th. Stephens lowered their price target on shares of Rapid7 from $19.00 to $12.00 and set an “equal weight” rating on the stock in a report on Wednesday. JPMorgan Chase & Co. dropped their price target on Rapid7 from $22.00 to $20.00 and set a “neutral” rating on the stock in a research report on Wednesday, November 5th. Finally, Truist Financial decreased their price objective on Rapid7 from $14.00 to $8.00 and set a “hold” rating for the company in a report on Wednesday. Two research analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and an average price target of $12.71.

Insider Transactions at Rapid7

In other news, CEO Corey E. Thomas purchased 14,500 shares of the business’s stock in a transaction on Monday, November 24th. The stock was purchased at an average cost of $13.82 per share, with a total value of $200,390.00. Following the acquisition, the chief executive officer directly owned 595,066 shares in the company, valued at approximately $8,223,812.12. This trade represents a 2.50% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Jana Partners Management, Lp purchased 41,545 shares of the firm’s stock in a transaction dated Friday, November 28th. The stock was purchased at an average cost of $15.71 per share, for a total transaction of $652,671.95. Following the acquisition, the director owned 6,760,149 shares of the company’s stock, valued at approximately $106,201,940.79. This trade represents a 0.62% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 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.

Rapid7 News Roundup

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 Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in 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 acquiring an additional 34,438 shares during the last quarter. First Trust Advisors LP boosted its holdings in shares of Rapid7 by 1.6% in the 3rd quarter. First Trust Advisors LP now owns 1,568,047 shares of the technology company’s stock worth $29,401,000 after purchasing an additional 24,277 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Rapid7 by 5.7% during the 4th 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 last quarter. Jacobs Levy Equity Management Inc. increased its position in shares of Rapid7 by 12.0% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 1,144,175 shares of the technology company’s stock valued at $21,453,000 after purchasing an additional 122,217 shares during the last quarter. Finally, Marshall Wace LLP raised its holdings in shares of Rapid7 by 60.9% during the 3rd quarter. Marshall Wace LLP now owns 1,139,273 shares of the technology company’s stock valued at $21,361,000 after buying an additional 431,195 shares in the last quarter. 95.66% of the stock is currently owned by hedge funds and other institutional investors.

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.