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RXT Stock Chart & Stats
$3.94
-$0.08(-1.99%)
At close: 4:00 PM EDT
$3.94
-$0.08(-1.99%)
Day’s Range― - ―
52-Week Range$0.39 - $8.60
Previous CloseN/A
Volume6.48M
Average Volume (3M)20.01M
Market Cap
$1.05B
Enterprise Value$3.38K
Total Cash (Recent Filing)$93.60M
Total Debt (Recent Filing)$3.23B
Price to Earnings (P/E)―
Beta3.72
Next Earnings
Aug 11, 2026EPS Estimate
-0.09Next Dividend Ex-DateN/A
Dividend YieldN/A
Share Statistics
EPS (TTM)-0.61
Shares Outstanding253,908,600
10 Day Avg. Volume11,704,590
30 Day Avg. Volume20,007,882
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$4.90Price Target Upside24.37% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)-0.17
Revenue Forecast (FY)$2.55B
Bulls Say, Bears Say
Bulls Say
Positive Cash GenerationSustained positive TTM operating cash flow (~$144M) and FCF (~$77M) show the services model can produce real cash even while GAAP losses persist. Durable cash generation supports liquidity, deleveraging, reinvestment in AI infrastructure, and reduces dependence on near-term external equity.
Strategic AI PartnershipsA definitive AMD deal plus Palantir and Uniphore collaborations create an integrated governed AI stack and joint GTM. This strengthens Rackspace’s competitive positioning for regulated enterprise AI, enabling a differentiated, accountable operator model that can command higher-margin, sticky services over the long term.
Revenue & Services MomentumMaterial revenue rebound and double‑digit services growth with a 20% rise in non‑GAAP operating profit indicate demand for managed, higher‑value engagements. A larger recurring managed services mix provides revenue durability and expansion opportunities across existing enterprise accounts, supporting medium‑term cash and margin improvement.
Bears Say
Negative Equity & LeverageDeep negative shareholders' equity (~-$1.22B) is a structural constraint on financial flexibility, increasing creditor and refinancing risk. Even with lower nominal debt, negative equity raises the cost of capital, limits balance‑sheet capacity for large AI capex, and makes the firm more vulnerable to macro or execution shocks.
Compressed Gross MarginsMaterial gross‑margin compression to ~18–19% reflects pricing pressure or higher delivery costs versus historical levels. Persistently lower gross margins reduce operating leverage, limit the ability to fund reinvestment without eroding profits, and make sustainable margin recovery harder as scale increases.
Financing Dilution & Transition RiskThe $250M ATM plus a $150M revenue outlook reduction highlight near‑term tradeoffs in the pivot to AI. ATM availability creates dilution risk; exiting lower‑margin legacy services and large capex for AI capacity raise execution and financing demands. Delays or higher costs could slow the targeted high‑margin revenue ramp.
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 $8.60 in the past 12 months.
What is Rackspace Technology, Inc.’s market cap?
Rackspace Technology, Inc.’s market cap is $1.05B.
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 8 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 -0.09.
How many shares outstanding does Rackspace Technology, Inc. have?
Rackspace Technology, Inc. has 253,908,600 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
Neutral
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10
Analyst Consensus
Hold
Average Price Target:
$4.90 (24.37% Upside)
$4.90 (24.37% Upside)
Blogger Sentiment
Bullish
RXT Sentiment 63%
Sector Average ―
Sector Average ―
Hedge Fund Trend
Decreased
By 57.0K Shares
Last Quarter.
Last Quarter.
Crowd Wisdom
Very Positive
Last 7 Days ▼ 2.7%
Last 30 Days ▲ 7.5%
Last 30 Days ▲ 7.5%
Technicals
SMA
Positive
20 days / 200 days
Momentum
191.32%
12-Months-Change
Fundamentals
Return on Equity
―
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
$4.90
▲(24.37% Upside)
Technical Analysis
Ownership Overview
7.58% Insiders
4.48% Mutual Funds
0.10% Other Institutional Investors
82.56% Public Companies and
Individual Investors