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Rackspace Technology (RXT) Stock Price & Analysis

RXT Stock Chart & Stats

$2.62-$0.37(-12.37%)
At close: 4:00 PM EDT
$3$4$53 Aug17 Aug31 Aug14 Sep28 Sep12 Oct26 Oct
Day’s Range
$2.55 - $2.83
52-Week Range
$0.39 - $8.60
Previous Close
$2.99
Volume
6.48M
Average Volume (3M)
4.78M
Market Cap
$667.77M
Enterprise Value
$4.83B
Total Cash (Recent Filing)
$110.60M
Total Debt (Recent Filing)
$3.30B
Price to Earnings (P/E)
―
Beta
4.03
Next Earnings
Nov 09, 2026 (Est.)
EPS Estimate
-0.08
Next Dividend Ex-Date
N/A
Dividend Yield
N/A

Bulls Say, Bears Say

Bulls Say

Recurring Managed Services Model

Recurring managed-services contracts provide a foundation of ongoing revenue through monitoring, support, security, and optimization. This model can deepen customer relationships, create renewal and expansion opportunities, and produce more durable revenue than project-only consulting work.

Enterprise AI Growth Platform

The production RackAI platform and AMD-backed infrastructure plan create a defined path into enterprise AI services. Management’s 30 MW target and projected 50%+ EBITDA margins could materially improve the business mix if deployment, customer adoption, and financing milestones are delivered.

Positive Cash Flow And EBITDA Outlook

Despite revenue-mix pressure, management expects positive full-year free cash flow and higher adjusted EBITDA. If achieved, improving operating earnings and cash generation would support ongoing investment, strengthen internal funding capacity, and provide evidence that restructuring is improving financial performance.

Bears Say

Highly Stressed Balance Sheet

Negative equity and substantial debt reduce financial flexibility and leave the company more exposed to refinancing and solvency pressures. The decline in total assets further limits balance-sheet support, making future investment and strategic execution more dependent on cash generation or external financing.

Persistent Losses And Margin Compression

Rackspace remains unprofitable despite narrowing losses, while flat revenue and lower gross margins indicate limited operating leverage. Continued pricing or mix pressure could constrain earnings recovery, reduce resources available for investment, and make the company’s improvement targets harder to sustain.

Revenue Decline And AI Financing Risk

The planned exit from low-margin Public Cloud work is expected to reduce near-term revenue, while the AI opportunity requires significant capital before its projected benefits arrive. Execution delays, long lead times, or constrained financing could therefore extend the transition and pressure liquidity.

Rackspace Technology News

RXT FAQ

What was Rackspace Technology’s price range in the past 12 months?
Rackspace Technology lowest stock price was $0.39 and its highest was $8.60 in the past 12 months.
What is Rackspace Technology’s market cap?
Rackspace Technology’s market cap is $667.77M.
When is Rackspace Technology’s upcoming earnings report date?
Rackspace Technology’s next earnings report is estimated for Nov 09, 2026 (not yet confirmed), which is in 7 days.
How were Rackspace Technology’s earnings last quarter?
Rackspace Technology released its earnings results on Aug 11, 2026. The company reported -$0.08 earnings per share for the quarter, beating the consensus estimate of -$0.09 by $0.01.
Is Rackspace Technology overvalued?
According to Wall Street analysts Rackspace Technology’s price is currently Undervalued.
Does Rackspace Technology pay dividends?
Rackspace Technology does not currently pay dividends.
What is Rackspace Technology’s EPS estimate?
Rackspace Technology’s EPS estimate is -0.08.
How many shares outstanding does Rackspace Technology have?
Rackspace Technology has 254,872,850 shares outstanding.
What happened to Rackspace Technology’s price movement after its last earnings report?
Rackspace Technology reported an EPS of -$0.08 in its last earnings report, beating expectations of -$0.09. Following the earnings report the stock price went up 6.667%.
Which hedge fund is a major shareholder of Rackspace Technology?
Hedge funds hold Rackspace Technology shares: the largest hedge-fund position in Rackspace Technology is 71,886,308 shares, and hedge funds increased their holdings by 4.0M shares last quarter.
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