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 guidance of 1.500-1.600 for the period, compared to the consensus earnings per share 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.

Analysts Set New Price Targets

RPD has been the topic of several analyst reports. Mizuho lowered their price objective on Rapid7 from $20.00 to $16.00 and set a “neutral” rating on the stock in a research report on Wednesday, January 21st. Canaccord Genuity Group cut their target price on shares of Rapid7 from $32.00 to $27.00 and set a “buy” rating for the company in a research report on Wednesday, November 5th. Morgan Stanley restated an “outperform” rating and issued a $18.00 price target on shares of Rapid7 in a research report on Thursday, December 18th. Wall Street Zen downgraded shares of Rapid7 from a “buy” rating to a “hold” rating in a research report on Sunday, January 11th. Finally, Royal Bank Of Canada lowered their price target on Rapid7 from $19.00 to $16.00 and set a “sector perform” rating on the stock in a report on Monday, January 5th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, fourteen have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $19.53.

Rapid7 Stock Down 3.4%

NASDAQ:RPD traded down $0.37 during mid-day trading on Tuesday, hitting $10.39. 3,174,723 shares of the company’s stock traded hands, compared to its average volume of 1,226,360. Rapid7 has a twelve month low of $10.20 and a twelve month high of $38.47. The company has a fifty day moving average of $14.11 and a 200 day moving average of $17.03. The company has a debt-to-equity ratio of 7.01, a quick ratio of 1.19 and a current ratio of 1.19. The company has a market capitalization of $680.34 million, a P/E ratio of 30.56 and a beta of 0.79.

Rapid7 (NASDAQ:RPD) last issued its earnings results on Tuesday, February 10th. The technology company reported $0.44 EPS for the quarter, beating analysts’ consensus estimates of $0.40 by $0.04. The firm had revenue of $217.39 million for the quarter, compared to analyst estimates of $215.17 million. Rapid7 had a return on equity of 67.30% and a net margin of 2.61%.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, analysts forecast that Rapid7 will post 0.35 EPS for the current year.

Insiders Place Their Bets

In other news, Director Jana Partners Management, Lp acquired 41,545 shares of the company’s stock in a transaction on Friday, November 28th. The shares were bought at an average price of $15.71 per share, with a total value of $652,671.95. Following the completion of the acquisition, 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 legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Marc Evan Brown acquired 3,000 shares of the company’s stock in a transaction on Tuesday, November 25th. The stock was acquired at an average price of $15.21 per share, for a total transaction of $45,630.00. Following the completion of the purchase, the director owned 51,882 shares of the company’s stock, valued at $789,125.22. This trade represents a 6.14% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders have acquired 67,345 shares of company stock worth $1,025,202. Corporate 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: reported $0.44 EPS vs. $0.40 expected and revenue roughly $217M, edging past estimates—evidence of near?term operational resilience. Rapid7 (RPD) Surpasses Q4 Earnings and Revenue Estimates
• Positive Sentiment: Solid cash generation and ARR: full?year 2025 revenue $860M (+2% YoY), ARR $840M (stable), and free cash flow ~$130M — supports financial flexibility for growth or M&A. Rapid7 Reports Financial Results for 2025, Highlights Growth in ARR and Revenue
• Neutral Sentiment: Product and market wins: company highlighted partnerships (Microsoft MDR, ARMO), product launches and industry recognitions (Gartner leader) — positive strategic indicators but longer?term in impact. Rapid7 Announces Fourth Quarter and Full-Year 2025 Financial Results
• Negative Sentiment: Cautious guidance — Q1 revenue ($207–$209M) and EPS ($0.29–$0.32) both miss consensus, and full?year revenue guidance ($835–$843M) is well below analysts’ ~ $869.7M estimate; this gap is the primary driver of today’s negative sentiment. Rapid7 Announces Fourth Quarter and Full-Year 2025 Financial Results
• Negative Sentiment: ARR flat year?over?year ($840M) and Q1 guidance anticipates a modest ARR decline (~$830M) — raises questions about growth momentum in a competitive cybersecurity market. Rapid7 Reports Financial Results for 2025, Highlights Growth in ARR and Revenue
• Negative Sentiment: Market technicals and balance sheet flags: heavy intraday volume (well above average) and the stock trading near its 52?week low amplify downside; debt/equity appears elevated (noted leverage), which may concern some investors. Rapid7 Stock Page

Institutional Trading of Rapid7

Several large investors have recently added to or reduced their stakes in RPD. Headlands Technologies LLC purchased a new position in shares of Rapid7 in the second quarter worth approximately $44,000. Tower Research Capital LLC TRC boosted its holdings 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 purchasing an additional 7,212 shares in the last quarter. Prudential Financial Inc. raised its stake 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 acquiring an additional 690 shares in the last quarter. Inceptionr LLC bought a new position in shares of Rapid7 in the third quarter valued at approximately $217,000. Finally, Cresset Asset Management LLC bought a new position in Rapid7 in the 3rd quarter worth $224,000. 95.66% of the stock is currently owned by institutional investors and hedge funds.

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.