Rackspace Technology (RXT)
NASDAQ:RXT
Earnings Data
Report Date
May 12, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
-0.03Last Year’s EPS
-0.06Same Quarter Last Year
Based on 3 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a constructive strategic pivot and operational progress with several key positives: Q4 revenue beat, strong public cloud services growth, improving operating profitability and healthy cash generation. Management outlined a clear platform-engineering strategy, meaningful partnerships (notably Palantir) and a roadmap to scale high-value enterprise AI and private cloud engagements. Offsetting this optimism are short-term challenges: a private cloud Q4 revenue miss due to a delayed health care ramp, YoY gross margin declines driven by mix and lower private cloud revenue, and near-term revenue cadence variability driven by large deal timing and a planned transition of a low-margin government contract. Overall, the positive execution, improved margins sequentially, strong guidance for operating profit expansion and strategic momentum slightly outweigh the operational and margin headwinds, supporting a favorable outlook.Company Guidance
Beat Guidance and Strong Q4 Revenue Performance
Total company GAAP revenue of $683 million in Q4 exceeded guidance across most metrics; public cloud revenue of $442 million was above guided range and drove outperformance.
Robust Services Growth in Public Cloud
Public cloud services revenue grew 28% year-over-year in Q4 and public cloud full-year services revenue grew 6% YoY, demonstrating momentum in higher-value managed offerings.
Profitability and Margin Momentum
Non-GAAP operating profit of $41 million in Q4 (non-GAAP operating margin 6%), up 120 basis points sequentially; adjusted EBITDA of $81 million for the quarter; non-GAAP loss per share was $(0.01), beating guided loss of $(0.03)-(0.05).
Healthy Cash Generation and Liquidity
Ended the year with $397 million in total liquidity and $106 million in cash on hand; Q4 cash flow from operations was $60 million and free cash flow was $56 million; FY cash flow from operations $151 million and FCF $91 million.
Positive 2026 Financial Outlook for Profitability
2026 guidance calls for GAAP revenue of $2.6B-$2.7B and significant profitability expansion: non-GAAP operating profit of $160M-$170M (approx. +31% at midpoint) and adjusted EBITDA of $305M-$315M (+12% at midpoint); free cash flow guidance of $90M-$110M.
Strategic Shift to Platform Engineering and Palantir Partnership
Company is building a platform-engineering model with forward-deployed engineers; 30 Palantir-trained engineers today with a plan to scale to over 250 in the next 12 months and a rapidly growing joint Palantir pipeline.
Meaningful Enterprise and Regulated Industry Wins
Closed multiyear engagements including a top European retail/commercial bank, a mission-critical migration for a global online trading platform, AI-enabled digital platform hosting, and multiple large public cloud managed-service wins across media, aviation and banking.
New Product and Platform Enhancements
Expanded private cloud platform capabilities with Oracle PeopleTools support, launched RackConnect Global Internet on Partner Fabric, and introduced Rackspace Managed Cloud Database Operations and streamlined enterprise/AI deployment options.
RXT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
RXT Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 26, 2026 | $1.35 | $2.28 | +68.89% |
Nov 06, 2025 | $1.46 | $1.24 | -15.07% |
Aug 07, 2025 | $1.27 | $1.21 | -4.72% |
May 08, 2025 | $1.44 | $1.25 | -12.85% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Rackspace Technology (RXT) report earnings?
Rackspace Technology (RXT) is schdueled to report earning on May 12, 2026, After Close (Confirmed).
What is Rackspace Technology (RXT) earnings time?
Rackspace Technology (RXT) earnings time is at May 12, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is RXT EPS forecast?
RXT EPS forecast for the fiscal quarter 2026 (Q1) is -0.03.