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

Shares of Rapid7, Inc. (NASDAQ:RPD) gapped up prior to trading on Tuesday following a better than expected earnings announcement. 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.

The technology company reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.35 by $0.09. The business had revenue of $210.88 million for the quarter, compared to the consensus estimate of $208.23 million. Rapid7 had a return on equity of 34.35% and a net margin of 2.61%.The business’s quarterly revenue was down 1.5% compared to the same quarter last year. During the same quarter last year, the business posted $0.58 earnings per share. Rapid7 has set its Q3 2026 guidance at 0.440-0.470 EPS.

Key Headlines 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

Wall Street Analysts Forecast Growth

Several research firms recently commented on RPD. Mizuho increased their price target on Rapid7 from $8.00 to $11.00 and gave the company a “neutral” rating in a report on Wednesday, July 15th. Raymond James Financial set a $8.00 price target on Rapid7 in a report on Wednesday, May 6th. Weiss Ratings reissued a “sell (d)” rating on shares of Rapid7 in a report on Wednesday, June 24th. Jefferies Financial Group reiterated a “hold” rating and issued a $12.00 target price on shares of Rapid7 in a report on Tuesday. Finally, Morgan Stanley lowered shares of Rapid7 from an “equal weight” rating to an “underweight” rating and set a $9.00 price target on the stock. in a research report on Tuesday, July 21st. Seventeen equities research analysts have rated the stock with a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Reduce” and an average price target of $10.32.

Institutional Inflows and Outflows

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

Rapid7 Price Performance

The stock has a market capitalization of $963.62 million, a price-to-earnings ratio of 41.20 and a beta of 0.97. The company has a debt-to-equity ratio of 1.69, a quick ratio of 0.78 and a current ratio of 0.78. The company has a 50 day moving average of $9.24 and a 200 day moving average of $7.95.

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.