Rapid7 (NASDAQ:RPD) Releases Q3 2026 Earnings Guidance

Rapid7 (NASDAQ:RPD) issued an update on its third quarter 2026 earnings guidance on Monday. The company provided earnings per share guidance of 0.440-0.470 for the period, compared to the consensus EPS estimate of 0.380. The company issued revenue guidance of $208.0 million-$210.0 million, compared to the consensus revenue estimate of $210.5 million.

Rapid7 Trading Up 15.2%

NASDAQ RPD opened at $13.38 on Wednesday. The stock has a market capitalization of $894.19 million, a P/E ratio of 43.16 and a beta of 0.97. Rapid7 has a 52-week low of $4.97 and a 52-week high of $21.78. The firm has a 50-day moving average price of $9.34 and a 200 day moving average price of $7.96. The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 1.69.

Rapid7 (NASDAQ:RPD) last announced its quarterly earnings data on Monday, August 10th. The technology company reported $0.44 EPS for the quarter, beating analysts’ consensus estimates of $0.35 by $0.09. Rapid7 had a net margin of 2.35% and a return on equity of 29.93%. The firm had revenue of $210.88 million during the quarter, compared to the consensus estimate of $208.23 million. During the same quarter last year, the firm earned $0.58 earnings per share. The firm’s revenue was down 1.5% compared to the same quarter last year. Rapid7 has set its Q3 2026 guidance at 0.440-0.470 EPS. Equities research analysts expect that Rapid7 will post 0.63 EPS for the current year.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the company. Truist Financial upped their price objective on Rapid7 from $6.00 to $10.00 and gave the stock a “hold” rating in a report on Tuesday, July 21st. Barclays upped their price target on shares of Rapid7 from $6.50 to $12.00 and gave the stock an “underweight” rating in a research note on Tuesday. Scotiabank raised their price objective on shares of Rapid7 from $7.00 to $10.15 and gave the company a “sector perform” rating in a research note on Tuesday. Stifel Nicolaus increased their target price on shares of Rapid7 from $7.00 to $13.00 and gave the company a “hold” rating in a report on Tuesday. Finally, DA Davidson lifted their price target on shares of Rapid7 from $5.25 to $9.00 and gave the company an “underperform” rating in a research report on Tuesday. One research analyst has rated the stock with a Buy rating, seventeen have given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Reduce” and an average price target of $11.61.

Key Rapid7 News

Here are the key news stories impacting Rapid7 this week:

• Positive Sentiment: Q2 earnings beat estimates: Rapid7 reported adjusted earnings of $0.44 per share, exceeding the $0.35 consensus estimate, while revenue of $210.88 million topped expectations of $208.23 million. The results helped drive the stock higher. Rapid7 Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Raised quarterly profit outlook: Rapid7 guided to third-quarter adjusted EPS of $0.44-$0.47, above the $0.38 analyst consensus. The improved profitability outlook supports the bullish reaction despite a relatively modest revenue forecast. Rapid7 Analysts Boost Their Forecasts Following Better-Than-Expected Q2 Earnings
• Positive Sentiment: Analysts lifted price targets: JPMorgan, Stephens and Robert W. Baird raised their targets to $12, $12 and $10, respectively, following the earnings report. The revisions suggest improved confidence in Rapid7’s execution, even though the firms retained neutral or equal-weight ratings. Rapid7 Analyst Price Target Updates
• Neutral Sentiment: Cash position remains a support: Rapid7 ended the quarter with $425.6 million in cash and equivalents, while operating cash flow was $37.0 million. Strong liquidity may provide flexibility as the company restructures and concentrates on core security offerings.
• Negative Sentiment: Growth and profitability remain pressured: Revenue declined approximately 1.5% year over year, EPS fell from $0.58 in the prior-year quarter, and third-quarter revenue guidance of $208 million-$210 million was slightly below the $210.5 million consensus. Analysts’ targets also remain below the current share price, signaling valuation concerns after the rally. Rapid7 Q2 Results and Outlook

Hedge Funds Weigh In On Rapid7

Several institutional investors and hedge funds have recently modified their holdings of the company. Prudential Financial Inc. boosted its holdings in Rapid7 by 8.8% during the second quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company’s stock worth $197,000 after buying an additional 690 shares in the last quarter. Parallel Advisors LLC grew its position in Rapid7 by 81.6% in the fourth quarter. Parallel Advisors LLC now owns 3,036 shares of the technology company’s stock worth $46,000 after buying an additional 1,364 shares during the last quarter. Headlands Technologies LLC bought a new position in shares of Rapid7 in the second quarter valued at $44,000. Swiss National Bank increased its holdings in shares of Rapid7 by 1.8% in the third quarter. Swiss National Bank now owns 112,000 shares of the technology company’s stock valued at $2,100,000 after buying an additional 2,000 shares in the last quarter. Finally, Russell Investments Group Ltd. lifted its position in shares of Rapid7 by 1.8% during the 4th quarter. Russell Investments Group Ltd. now owns 124,134 shares of the technology company’s stock valued at $1,887,000 after acquiring an additional 2,150 shares during the last quarter. Hedge funds and other institutional investors own 95.66% of the company’s stock.

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.