Rapid7 Price Target Cut to $9, Fiscal 2026 Revenue Guidance at $835–843M
Scotiabank cut its price target on Rapid7 to $9 from $18 while maintaining a Sector Perform rating, joining Truist and UBS in lowering expectations after a mixed Q4 report. Rapid7 posted Q4 revenue of $217 million and guided fiscal 2026 revenue to $835–843 million, below the $869.95 million consensus.
1. Multiple Analyst Downgrades
Scotiabank trimmed its price target on Rapid7 from $18 to $9 and kept a Sector Perform rating, citing the need for proof of lasting revenue and earnings growth. Truist cut its price target to $8 from $14 with a Hold rating, and UBS downgraded to Neutral, reducing its target to $9 from $25 following what it deemed a disappointing fourth-quarter.
2. Q4 Performance and Guidance Miss
Rapid7 reported fourth-quarter revenue of $217 million, slightly above the $215.17 million consensus, but guided fiscal 2026 revenue to $835–843 million, below the $869.95 million consensus estimate. The guidance reflects cautious expectations after a projected 2% year-over-year revenue decline in its Detection and Response segment.
3. Strategic Focus on AI Security
CEO Corey Thomas highlighted that Rapid7 exited 2025 ahead of ARR, revenue, and profitability targets, emphasizing its AI-driven security operations approach. The company plans to prioritize innovation and execution in 2026 to reaccelerate growth and return to sustainable financial performance.