Rackspace Technology, Inc. (RXT)
NASDAQ:RXT
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RXT Stock Chart & Stats
$1.47
$0.03(1.31%)
At close: 4:00 PM EST
$1.47
$0.03(1.31%)
Day’s Range― - ―
52-Week Range$0.39 - $7.65
Previous CloseN/A
Volume333.43K
Average Volume (3M)33.54M
Market Cap
$1.36B
Enterprise Value$4.42B
Total Cash (Recent Filing)$93.60M
Total Debt (Recent Filing)$3.23B
Price to Earnings (P/E)―
Beta3.53
Next Earnings
Aug 11, 2026EPS Estimate
-0.05Next Dividend Ex-DateN/A
Dividend YieldN/A
Share Statistics
EPS (TTM)-0.61
Shares Outstanding249,222,500
10 Day Avg. Volume16,531,406
30 Day Avg. Volume33,539,190
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)-0.19
Price to Sales (P/S)0.09
P/FCF Ratio2.56
Enterprise Value/Market Cap3.26
Enterprise Value/Revenue1.64
Enterprise Value/Gross Profit13.14
Enterprise Value/Ebitda12.39
Forecast
1Y Price Target
$4.33Price Target Upside194.78% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)-0.16
Revenue Forecast (FY)$2.65B
Bulls Say, Bears Say
Bulls Say
Services & Revenue MomentumGrowth in Public Cloud and services revenue reflects durable demand for managed cloud engagements and a shift toward higher-value, recurring services. That recurring services mix supports more predictable revenue and contract-led retention, enhancing long-term cash conversion and customer stickiness even as execution continues.
Strategic Partnerships & Product RoadmapExpanding alliances (AMD, Palantir, Uniphore, Broadcom/VCF9) create a differentiated enterprise AI and governed-cloud stack and broaden GTM channels. These partnerships can structurally extend service offerings, accelerate large-account wins, and position the company in higher-growth, higher-value enterprise AI and sovereign-cloud markets.
Improving Cash Generation And Active DeleveragingPositive TTM operating cash flow and free cash flow demonstrate the services model can generate cash despite accounting losses. Active debt repurchases and lower absolute debt improve interest burden and leverage flexibility, making the balance-sheet repair path credible over the medium term if cash generation is sustained.
Bears Say
Negative Stockholders' EquityA sustained negative equity position materially limits financial flexibility and can constrain access to capital or favorable financing terms. Even with lower reported debt, negative equity raises investor and counterparty concerns and increases the company's vulnerability to revenue shocks or refinancing needs over the next 6–24 months.
Compressed Gross Margins And Ongoing LossesGross margins sit well below historical levels (previously ~22–31%), indicating weaker pricing power or higher delivery costs. Persistent negative net and EBIT margins mean profitability remains fragile; margin compression limits the durability of operating leverage and makes sustained positive net income dependent on structural cost or pricing improvements.
Execution & Timing Risk From AMD MOU And Weak Near-term Cash FlowThe AMD agreement remains a nonbinding MOU with financing and supply/timing uncertainty, so anticipated AI capacity and revenue upside are not guaranteed. Coupled with weak near-term cash flow metrics, this raises execution risk: the company may struggle to fund and scale promised capabilities without steady, improving cash generation.
Rackspace Technology News
RXT FAQ
What was Rackspace Technology, Inc.’s price range in the past 12 months?
Rackspace Technology, Inc. lowest stock price was $0.39 and its highest was $7.65 in the past 12 months.
What is Rackspace Technology, Inc.’s market cap?
Rackspace Technology, Inc.’s market cap is $1.36B.
When is Rackspace Technology, Inc.’s upcoming earnings report date?
Rackspace Technology, Inc.’s upcoming earnings report date is Aug 11, 2026 which is in 58 days.
How were Rackspace Technology, Inc.’s earnings last quarter?
Rackspace Technology, Inc. released its earnings results on May 07, 2026. The company reported -$0.06 earnings per share for the quarter, missing the consensus estimate of -$0.032 by -$0.028.
Is Rackspace Technology, Inc. overvalued?
According to Wall Street analysts Rackspace Technology, Inc.’s price is currently Undervalued.
Does Rackspace Technology, Inc. pay dividends?
Rackspace Technology, Inc. does not currently pay dividends.
What is Rackspace Technology, Inc.’s EPS estimate?
Rackspace Technology, Inc.’s EPS estimate is -0.05.
How many shares outstanding does Rackspace Technology, Inc. have?
Rackspace Technology, Inc. has 249,222,500 shares outstanding.
What happened to Rackspace Technology, Inc.’s price movement after its last earnings report?
Rackspace Technology, Inc. reported an EPS of -$0.06 in its last earnings report, missing expectations of -$0.032. Following the earnings report the stock price went up 55.066%.
Which hedge fund is a major shareholder of Rackspace Technology, Inc.?
Currently, no hedge funds are holding shares in RXT
What is the TipRanks Smart Score and how is it calculated?
Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology
Rackspace Technology Stock Smart Score
Outperform
1
2
3
4
5
6
7
8
9
10
Analyst Consensus
Hold
Average Price Target:
$4.33 (194.78% Upside)
$4.33 (194.78% Upside)
Blogger Sentiment
Bullish
RXT Sentiment 70%
Sector Average ―
Sector Average ―
Hedge Fund Trend
Decreased
By 57.0K Shares
Last Quarter.
Last Quarter.
Crowd Wisdom
Very Positive
Last 7 Days ▲ 5.2%
Last 30 Days ▲ 34.1%
Last 30 Days ▲ 34.1%
News Sentiment
Very Bullish
Bullish news 99%
Bearish news 0%
Bearish news 0%
Technicals
SMA
Positive
20 days / 200 days
Momentum
300.00%
12-Months-Change
Fundamentals
Return on Equity
12.31%
Trailing 12-Months
Asset Growth
-6.77%
Trailing 12-Months
Company Description
Rackspace Technology, Inc.
Rackspace Technology, Inc. is a global provider specializing in multi-cloud technology services. The company organizes its business into two primary divisions: Multicloud Services and Apps & Cross Platform. Through its Multicloud Services division, Rackspace offers comprehensive managed services for both public and private cloud environments. These services empower clients to identify, oversee, and fine-tune their ideal infrastructure, platforms, and associated services. This segment also delivers expert professional assistance for architecting and deploying multi-cloud strategies and modern cloud-native applications. The Apps & Cross Platform segment encompasses managed application services, along with extensive managed security offerings. These security services span threat identification and mitigation, proactive prevention, prompt incident response, adherence to governance standards, risk management, compliance support across diverse cloud ecosystems, and robust privacy and data protection, including granular access controls and reporting. Furthermore, this segment provides specialized data services and professional expertise for the development and deployment of application, security, and data solutions. Established in 1998, Rackspace Technology, Inc. maintains its corporate headquarters in San Antonio, Texas.
RXT Company Deck
RXT Earnings Call
Q1 2026
0:00 / 0:00
Earnings Call Sentiment|Neutral
The call conveyed a balance of strategic progress and execution momentum alongside near-term financial pressures. Highlights include multi-pronged partnerships (AMD, Palantir, Uniphore), notable customer and sovereign wins, Public Cloud growth (+7% YoY) and a 20% increase in non-GAAP operating profit. Lowlights include gross margin compression (-160 bps overall), a 6% YoY decline in Private Cloud revenue driven by timing, weak operating and free cash flow (operating cash flow $5M; FCF -$9M), and that the AMD collaboration remains a nonbinding MOU with financing and timing risks. Management reaffirmed full-year guidance and is actively deleveraging, but the financial trade-offs and execution/timing risks keep the tone mixed.View all RXT earnings summariesRXT Stock 12 Month Forecast
Average Price Target
$4.33
▲(194.78% Upside)
Technical Analysis
Ownership Overview
7.98% Insiders
4.54% Mutual Funds
52.94% Other Institutional Investors
28.69% Public Companies and
Individual Investors