Rapid7, Inc. (RPD) · Nov 4, 2026 · Earnings
Beat — Non-GAAP diluted EPS $0.60 vs ~$0.46 consensus
Rapid7’s Q3 earnings beat consensus and the company raised full-year 2026 guidance, though ARR declined 3% as its turnaround remains incomplete.
Rapid7 is in a multi-quarter turnaround: after cutting roughly 12% of its workforce, it is concentrating spending on its core security platform, MDR, Exposure Management and an AI-first operating model. That reset was already known from the prior quarter; the new information is that execution is running ahead of the reduced plan.
| Metric | Q3 2026 | Q3 2025 | Consensus / prior guide |
|---|---|---|---|
| Revenue (Income Statement) | $212.4M (-2.6%) | $218.0M | ~$209.1M |
| Non-GAAP diluted EPS (Non-GAAP reconciliation) | $0.60 | $0.57 | ~$0.46 |
| ARR (Guidance table) | $812M (-3%) | $824M | |
| FY26 revenue guide (Guidance table) | $841–843M | $837–841M | |
| FY26 non-GAAP operating income guide (Guidance table) | $140–142M | $129–133M | |
| FY26 non-GAAP diluted EPS guide (Guidance table) | $1.94–1.96 | $1.78–1.83M |
The quarter beat materially on profitability, not growth. Revenue of $212.4 million topped the published consensus of about $209.1 million, while non-GAAP diluted EPS of $0.60 exceeded roughly $0.46. Non-GAAP operating income was $46.2 million, well above the company’s prior Q3 guide of $34–36 million. The improvement came alongside lower sales and marketing and research spending, while restructuring charges still weighed on GAAP results.
Management converted the quarter’s outperformance into a higher full-year target. Full-year revenue guidance moved up only modestly, but the operating-income range rose by $11 million at the midpoint and the EPS range by roughly $0.15 at the midpoint. That indicates the restructuring is producing more cost leverage than previously assumed, even though the top-line outlook remains a contraction rather than a return to growth.
The core demand problem is not solved. ARR was approximately $812 million, down 3% year over year and essentially flat with the prior quarter’s guided level. Product-subscription revenue also declined year over year, and professional-services revenue fell sharply. So the filing validates stabilization and cash discipline, not durable demand acceleration. 〔0〕
The AI strategy is still an investment thesis, not an established growth engine. Rapid7 is putting its cost savings behind Rapid7 Intelligence, AI agents and Autonomous SOC, with hundreds of customers using Kenzo-powered capabilities, but the filing provides no quantified ARR or revenue contribution from those products. Management itself frames the result cautiously: “one quarter of stability is just a start.” 〔1〕
Bottom line: This is a clear execution beat and a meaningful guidance upgrade, making the turnaround look more controlled than expected. It improves the business story, but falling ARR means Rapid7 has not yet demonstrated a return to durable growth.
Q4 results and 2027 outlook, early 2027
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