Cybersecurity Stocks Q1 Recap: Benchmarking Rapid7 (NASDAQ:RPD)
Cybersecurity Stocks Q1 Recap: Benchmarking Rapid7 (NASDAQ:RPD)
Publish Date: 2026-06-12 14:21:00
Source Domain: finance.yahoo.com
Using an unordered list, summarize the following article with between 4 and 8 key points. The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Rapid7 (NASDAQ:RPD) and the rest of the cybersecurity stocks fared in Q1. Cybersecurity continues to be one of the fastest-growing segments within software for good reason. Almost every company is slowly finding itself becoming a technology company and facing rising cybersecurity risks. Businesses are accelerating adoption of cloud-based software, moving data and applications into the cloud to save costs while improving performance. This migration has opened them to a multitude of new threats, like employees accessing data via their smartphone while on an open network, or logging into a web-based interface from a laptop in a new location. The 9 cybersecurity stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was in line. Thankfully, share prices of the companies have been resilient as they are up 5.6% on average since the latest earnings results. Rapid7 (NASDAQ:RPD) With its name inspired by the need for quick responses to cyber threats, Rapid7 (NASDAQ:RPD) provides cybersecurity software and services that help organizations detect vulnerabilities, monitor threats, and respond to security incidents. Rapid7 reported revenues of $209.7 million, flat year on year. This print exceeded analysts’ expectations by 0.8%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations. “As frontier models reshape the cybersecurity landscape, Rapid7’s AI SOC and preemptive security infrastructure are more essential than ever,” said Corey Thomas, CEO of Rapid7. Rapid7 Total Revenue Rapid7 scored the highest full-year guidance raise but had the slowest revenue growth of the whole group. Unsurprisingly, the stock is up 9.9% since reporting and currently trades at $7.34. Read our full report on Rapid7 here, it’s free. Best Q1: Palo Alto Networks (NASDAQ:PANW) Founded in 2005 by security visionary Nir Zuk who sought to reimagine firewall technology, Palo Alto Networks (NASDAQ:PANW) provides AI-powered cybersecurity platforms that protect organizations’ networks, clouds, and endpoints from sophisticated threats. Palo Alto Networks reported revenues of $3.00 billion, up 31.1% year on year, outperforming analysts’ expectations by 2%. The business had a very strong quarter with an impressive beat of analysts’ billings and EBITDA estimates. Story Continues Palo Alto Networks Total Revenue Palo Alto Networks pulled off the fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 6.2% since reporting. It currently trades at $278.70. Is now the time to buy Palo Alto Networks? Access our full analysis of the earnings results here, it’s free. Weakest Q1: SentinelOne (NYSE:S) Built on the principle of “fighting machine with machine,” SentinelOne (NYSE:S) provides an AI-powered cybersecurity platform that autonomously prevents, detects, and responds to threats across endpoints, cloud workloads, and identity systems. SentinelOne reported revenues of $276.7 million, up 20.8% year on year, in line with analysts’ expectations. It was a slower quarter as it posted EPS guidance for next quarter missing analysts’ expectations and a significant miss of analysts’ billings estimates. SentinelOne delivered the weakest performance against analyst estimates in the group. The company added 35 enterprise customers paying more than $100,000 annually to reach a total of 1,702. As expected, the stock is down 18% since the results and currently trades at $14.77. Read our full analysis of SentinelOne’s results here. CrowdStrike (NASDAQ:CRWD) Known for detecting the massive SolarWinds hack in 2020 that compromised numerous government agencies, CrowdStrike (NASDAQ:CRWD) provides cloud-based cybersecurity solutions that protect endpoints, cloud workloads, identity, and data through its Falcon platform. CrowdStrike reported revenues of $1.39 billion, up 25.6% year on year. This print beat analysts’ expectations by 1.7%. Aside from that, it was a satisfactory quarter as it also recorded a solid beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates. The stock is down 7.1% since reporting and currently trades at $694.47. Read our full, actionable report on CrowdStrike here, it’s free. Okta (NASDAQ:OKTA) Named after the meteorological measurement for cloud cover, Okta (NASDAQ:OKTA) provides cloud-based identity management solutions that help organizations securely connect their employees, partners, and customers to the right applications and services. Okta reported revenues of $765 million, up 11.2% year on year. This number topped analysts’ expectations by 1.7%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ EBITDA and billings estimates. Okta had the weakest full-year guidance update among its peers. The stock is up 23.5% since reporting and currently trades at $117. Read our full, actionable report on Okta here, it’s free. Market Update Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.
