Rackspace Technology (RXT) Stock Overview
Operates as a hybrid cloud and artificial intelligence solutions company in the United States, the United Kingdom, and internationally. More details
| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 0/6 |
| Past Performance | 0/6 |
| Financial Health | 2/6 |
| Dividends | 0/6 |
Rewards
Risk Analysis
RXT Community Fair Values
Create NarrativeSee what 17 others think this stock is worth. Follow their fair value or set your own to get alerts.
Analyst Price Targets
Rackspace Technology, Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$4.69 |
| 52 Week High | US$6.00 |
| 52 Week Low | US$0.39 |
| Beta | 2.24 |
| 1 Month Change | 255.30% |
| 3 Month Change | 968.34% |
| 1 Year Change | 260.77% |
| 3 Year Change | 334.26% |
| 5 Year Change | -76.37% |
| Change since IPO | -71.39% |
Recent News & Updates
Recent updates
Narrative Update • May 01
RXT: Q4 Outperformance And FY26 Outlook Will Support Renewed Upside Potential
Narrative update Analysts have lifted Rackspace Technology's blended price target to $2.50, citing better than expected Q4 results, progress in the business, and FY26 guidance that aligns with prior expectations, along with recent target moves from $1.75 to $2.50 and from $1.30 to $2.00. Analyst Commentary Recent research highlights a more constructive tone around Rackspace Technology, with bullish analysts pointing to better than expected Q4 results and FY26 guidance that aligns with earlier expectations.
Narrative Update • Apr 16
RXT: Progress On FY26 Plan Will Support Repriced Upside Potential
Rackspace Technology's analyst fair value estimate has shifted from $1.40 to $2.00, as analysts point to recent price target moves to $2.00 and $2.50, supported by Q4 results that came in better than expected and FY26 guidance that was largely in line with expectations. Analyst Commentary Recent Street research around Rackspace Technology reflects cautiously constructive views, with higher price targets balanced by awareness of execution and growth risks.Seeking Alpha • Apr 15
Rackspace Technology: Right Strategy, Uncertain Execution
Summary Rackspace Technology faces structural challenges in the multi-cloud services market, with weak margins, limited pricing power, and stagnant revenue since its 2020 IPO. The company is attempting a high-risk turnaround by exiting low-margin contracts, improving its service mix, and targeting higher-value platform engineering and advisory work. Profitability hinges on a combination of revenue growth, improved service mix, and significant fixed cost reduction; current guidance suggests breakeven remains elusive at projected 2026 revenues. My reverse-engineered valuation shows the market price already bakes in margin improvement and cost discipline, but there is no track record of execution yet. Read the full article on Seeking AlphaNarrative Update • Apr 02
RXT: Q4 Execution And FY26 Guidance Will Support Constructive Upside Potential
Analysts have raised Rackspace Technology's price target to a range of $2 to $2.50, up from $1.30 to $1.75, citing better-than-expected Q4 results and progress toward guidance that aligns with FY26 expectations. Analyst Commentary Recent price target moves point to improving sentiment around Rackspace Technology, with bullish analysts reacting to Q4 results and guidance that align with FY26 expectations.
Narrative Update • Mar 19
RXT: Q4 Execution And Cyber Recovery Progress Will Support Higher Equity Value
Narrative Update: Rackspace Technology Analyst Price Target Shift Analysts have adjusted the implied fair value range for Rackspace Technology, with the average price target moving from about $1.63 to roughly $2.17, supported by recent target revisions to $2 and $2.50 that reference better than expected Q4 results and guidance that aligns with existing expectations. Analyst Commentary Recent price target revisions suggest analysts are reassessing Rackspace Technology's risk and reward profile after Q4 results and updated guidance, with views split between cautious optimism and lingering concerns about execution and growth visibility.Narrative Update • Mar 04
RXT: Cloud Progress And FY26 Outlook Will Shape Measured Upside Potential
Analysts have raised their price target on Rackspace Technology to $2.50 from $1.75, citing better than expected Q4 results, progress in the business, and FY26 guidance that aligned with their expectations. Analyst Commentary Bullish analysts are pointing to the recent reset in expectations and fresh guidance as reasons to revisit Rackspace Technology with a more constructive view on the shares.Narrative Update • Feb 18
RXT: Cloud Migrations Will Drive Future Upside Narrative Conviction
Narrative Update: Rackspace Technology Analyst Price Target Shift Analysts have modestly adjusted their $1.75 price target on Rackspace Technology, citing updated assumptions for revenue growth, profit margins and future P/E that reflect a slightly lower discount rate and a more refined outlook for the business. What's in the News Niterra EMEA GmbH selected Rackspace Technology to support a rapid migration to Google Cloud as part of its "Google first" IT strategy, focusing on unifying its global server environment on a single cloud platform (Key Developments).Narrative Update • Feb 04
RXT: AI Services And Cloud Migrations Will Drive Future Upside Potential
Analysts have maintained their price target on Rackspace Technology at US$1.75 per share, reflecting only minor model tweaks to revenue growth, profit margin and future P/E assumptions without a material change in their overall valuation view. What's in the News Niterra EMEA GmbH selected Rackspace Technology to support a rapid migration to Google Cloud as part of its "Google first" IT strategy, consolidating three on premises data centers in Dubai, Johannesburg and Frankfurt into a single cloud platform (Client announcement).Narrative Update • Jan 21
RXT: AI Services And Cloud Migrations Will Support Future Upside Potential
Analysts have nudged their price target for Rackspace Technology slightly higher, citing modest tweaks to long term revenue growth, profit margin and future P/E assumptions that together support a refined fair value estimate of US$1.75 per share. What's in the News Niterra EMEA GmbH selected Rackspace Technology to support a rapid migration to Google Cloud, including consolidating three on premises data centers in Dubai, Johannesburg and Frankfurt into a single cloud platform (Client announcement).Narrative Update • Jan 06
RXT: AI And Cloud Migrations Will Support Stronger Future Earnings Potential
Analysts have nudged their price target on Rackspace Technology slightly higher to reflect small updates to projected revenue growth, profit margin, and future P/E assumptions. This has resulted in a modest increase in their assessed per share value to about US$1.75.Narrative Update • Dec 14
RXT: AI And Cloud Wins Will Support Stronger Future Earnings Potential
Analysts have modestly raised their price target on Rackspace Technology, citing slightly stronger projected revenue growth and a lower expected future P/E multiple as key supports for their updated fair value estimate, which is moving from 1.75 dollars to 2.00 dollars despite a marginally higher discount rate. What's in the News NiterraEMEA GmbH selected Rackspace Technology to lead a rapid migration to Google Cloud, consolidating three global data centers and moving its entire SAP environment in just two months with no operational disruption (client announcement).Analysis Article • Oct 28
A Look At The Intrinsic Value Of Rackspace Technology, Inc. (NASDAQ:RXT)
Key Insights The projected fair value for Rackspace Technology is US$1.67 based on 2 Stage Free Cash Flow to Equity...Analysis Article • Sep 19
Rackspace Technology, Inc. (NASDAQ:RXT) Shares Fly 30% But Investors Aren't Buying For Growth
Rackspace Technology, Inc. ( NASDAQ:RXT ) shareholders would be excited to see that the share price has had a great...Narrative Update • Aug 08
Managed Cloud And Cybersecurity With AI Will Foster Future Value
The consensus price target for Rackspace Technology has increased from $1.59 to $1.78, driven by improved revenue growth forecasts and a higher expected future P/E multiple. What's in the News Rackspace issued Q3 2025 revenue guidance of $660–$674 million.Analysis Article • Jun 19
Insufficient Growth At Rackspace Technology, Inc. (NASDAQ:RXT) Hampers Share Price
Rackspace Technology, Inc.'s ( NASDAQ:RXT ) price-to-sales (or "P/S") ratio of 0.1x might make it look like a strong...
New Narrative • Mar 27
Private Cloud And AI Adoption Will Open Future Markets
Record-breaking sales bookings in private cloud and focus on high-growth sectors could lead to sustainable recurring revenue and improved profitability.Analysis Article • Feb 07
Rackspace Technology, Inc.'s (NASDAQ:RXT) Price Is Right But Growth Is Lacking After Shares Rocket 27%
Rackspace Technology, Inc. ( NASDAQ:RXT ) shareholders would be excited to see that the share price has had a great...Seeking Alpha • Jan 28
Rackspace Technology: Too Much Risk, Too Little Reward
Summary Rackspace Technology (RXT) faces significant financial challenges, including high debt levels and declining revenues, making it a risky investment despite its partnerships and AI innovations. The company's debt burden severely restricts its ability to invest in growth, with over half of its operational cash flow going towards debt servicing. RXT's competitive position is weak due to intense competition in the cloud services market and a shrinking target market for cloud transitions. Despite some potential for growth in the overall cloud market, RXT's current financial instability and lack of profitability make it an unattractive investment. Read the full article on Seeking AlphaAnalysis Article • Oct 09
Rackspace Technology, Inc.'s (NASDAQ:RXT) Share Price Is Matching Sentiment Around Its Revenues
Rackspace Technology, Inc.'s ( NASDAQ:RXT ) price-to-sales (or "P/S") ratio of 0.2x might make it look like a strong...Analysis Article • Apr 24
What Does Rackspace Technology, Inc.'s (NASDAQ:RXT) Share Price Indicate?
While Rackspace Technology, Inc. ( NASDAQ:RXT ) might not have the largest market cap around , it saw a decent share...Analysis Article • Mar 09
Improved Revenues Required Before Rackspace Technology, Inc. (NASDAQ:RXT) Stock's 28% Jump Looks Justified
Rackspace Technology, Inc. ( NASDAQ:RXT ) shareholders have had their patience rewarded with a 28% share price jump in...Shareholder Returns
| RXT | US IT | US Market | |
|---|---|---|---|
| 7D | 133.3% | -5.0% | 2.6% |
| 1Y | 260.8% | -8.3% | 26.2% |
Return vs Industry: RXT exceeded the US IT industry which returned -8.3% over the past year.
Return vs Market: RXT exceeded the US Market which returned 26.2% over the past year.
Price Volatility
| RXT volatility | |
|---|---|
| RXT Average Weekly Movement | 74.8% |
| IT Industry Average Movement | 10.7% |
| Market Average Movement | 7.2% |
| 10% most volatile stocks in US Market | 16.1% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: RXT's share price has been volatile over the past 3 months compared to the US market.
Volatility Over Time: RXT's weekly volatility has increased from 39% to 75% over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1998 | 5,000 | Gajen Kandiah | www.rackspace.com |
Rackspace Technology, Inc. operates as a hybrid cloud and artificial intelligence solutions company in the United States, the United Kingdom, and internationally. It operates through two segments, Public Cloud and Private Cloud. The company offers programmatic infrastructure, including hardware and services for datacenter compute, network, storage, and data protection; cloud operating systems; platform-as-a-service; private cloud solutions; and private cloud services, such as managed, professional, elastic engineering, and security services, as well as an email platform for customers and carriers.
Rackspace Technology, Inc. Fundamentals Summary
| RXT fundamental statistics | |
|---|---|
| Market cap | US$1.37b |
| Earnings (TTM) | -US$146.00m |
| Revenue (TTM) | US$2.70b |
0.4x
P/S Ratio-8.0x
P/E RatioIs RXT overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| RXT income statement (TTM) | |
|---|---|
| Revenue | US$2.70b |
| Cost of Revenue | US$2.19b |
| Gross Profit | US$508.70m |
| Other Expenses | US$654.70m |
| Earnings | -US$146.00m |
Last Reported Earnings
Mar 31, 2026
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.59 |
| Gross Margin | 18.85% |
| Net Profit Margin | -5.41% |
| Debt/Equity Ratio | -226.6% |
How did RXT perform over the long term?
See historical performance and comparisonCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/05/11 17:07 |
| End of Day Share Price | 2026/05/11 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Rackspace Technology, Inc. is covered by 10 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Ramsey El-Assal | Barclays |
| Keith Bachman | BMO Capital Markets Equity Research |
| Ashwin Shirvaikar | Citigroup Inc |