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RXT Stock Chart & Stats
$3.40
-$0.08(-1.99%)
At close: 4:00 PM EDT
$3.40
-$0.08(-1.99%)
Day’s Range― - ―
52-Week Range$0.39 - $8.60
Previous CloseN/A
Volume6.48M
Average Volume (3M)7.32M
Market Cap
$851.28M
Enterprise Value$4.83K
Total Cash (Recent Filing)$110.60M
Total Debt (Recent Filing)$3.30B
Price to Earnings (P/E)―
Beta3.91
Next Earnings
Nov 11, 2026EPS Estimate
-0.08Next Dividend Ex-DateN/A
Dividend YieldN/A
Share Statistics
EPS (TTM)-0.65
Shares Outstanding254,872,850
10 Day Avg. Volume7,105,564
30 Day Avg. Volume7,317,238
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
$4.77Price Target Upside40.20% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)-0.25
Revenue Forecast (FY)$2.50B
Bulls Say, Bears Say
Bulls Say
Enterprise AI Platform ExpansionThe AMD partnership and production RackAI platform expand Rackspace beyond traditional cloud operations into governed enterprise AI infrastructure. This creates a differentiated, higher-value service opportunity, particularly in regulated environments, with potential for recurring platform and managed-service revenue.
Recurring Managed-services ModelRecurring managed-services contracts can provide a durable revenue base because customers rely on Rackspace for monitoring, support, security, reliability, and optimization over time. These relationships also create opportunities to renew, expand workloads, and attach project-based modernization services.
Positive Cash-flow And EBITDA OutlookExpected positive full-year free cash flow and higher adjusted EBITDA indicate that management is targeting improved operating leverage despite a difficult revenue transition. If achieved, stronger cash generation would support reinvestment in AI and help reduce dependence on external financing.
Bears Say
Highly Stressed Balance SheetNegative equity combined with substantial debt materially restricts Rackspace’s financial flexibility. Elevated leverage can increase refinancing and solvency pressure, constrain investment choices, and make the planned AI expansion more dependent on successful financing and cash-flow improvement.
Revenue Contraction During Portfolio ExitThe deliberate exit from lower-margin Public Cloud and related offerings is reducing near-term revenue scale while the replacement AI business is still being built. This transition raises execution risk because growth and operating leverage must emerge before the displaced volume is fully replaced.
Persistent Unprofitability And Margin PressureRackspace remains unprofitable despite narrowing losses, and lower gross margins indicate ongoing pricing, mix, or cost pressure. Continued margin weakness can limit internal funding for strategic investments and make the company more vulnerable if revenue declines persist during its business-model transition.
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 $851.28M.
When is Rackspace Technology’s upcoming earnings report date?
Rackspace Technology’s upcoming earnings report date is Nov 11, 2026 which is in 54 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?
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
1
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3
4
5
6
7
8
9
10
Analyst Consensus
Hold
Average Price Target:
$4.77 (40.20% Upside)
$4.77 (40.20% Upside)
Blogger Sentiment
Neutral
RXT Sentiment 50%
Sector Average 61%
Sector Average 61%
Hedge Fund Trend
Increased
By 3.6M Shares
Last Quarter.
Last Quarter.
Insider Transactions
Sold Shares
Worth $207.3K over
the Last 3 Months
the Last 3 Months
Crowd Wisdom
Very Negative
Last 7 Days ▼ 1.1%
Last 30 Days ▼ 4.9%
Last 30 Days ▼ 4.9%
Technicals
SMA
Positive
20 days / 200 days
Momentum
157.77%
12-Months-Change
Fundamentals
Return on Equity
―
Trailing 12-Months
Asset Growth
-5.17%
Trailing 12-Months
Learn more about TipRanks Smart Score
Company Description
Rackspace Technology
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
Q2 2026
0:00 / 0:00
Earnings Call Sentiment|Neutral
The call balanced tangible near-term challenges with a clear strategic pivot toward high‑margin enterprise AI and several promising milestones. Near-term metrics include modest revenue growth in Q2 (+1% YoY) but compressed gross margins (down 120 bps), negative H1 free cash flow, and a full‑year revenue decline guide (‑7% midpoint) driven by an intentional exit of low‑margin Public Cloud business (Public Cloud guide down ~13% midpoint). Offsetting these headwinds are substantive strategic positives: production launch of RackAI, a definitive AMD partnership targeting a 30 MW AI footprint with projected $450M–$600M annual revenue at scale and 50%+ AI EBITDA margins, accelerating Palantir traction, notable customer wins in regulated industries, improved adjusted EBITDA guidance (+5% at midpoint), and an expectation of positive full‑year free cash flow ($50M–$70M). Given the meaningful strategic upside but material near‑term financial headwinds and execution/financing risks, the call reflects a balanced, transitional outlook.View all RXT earnings summariesRXT Stock 12 Month Forecast
Average Price Target
$4.77
▲(40.20% Upside)
Technical Analysis
Ownership Overview
6.73% Insiders
4.46% Mutual Funds
60.28% Other Institutional Investors
22.77% Public Companies and Individual Investors