Rackspace Technology (NASDAQ:RXT) Announces FY 2026 Earnings Guidance

Key Points

• Rackspace guided to FY 2026 revenue of $2.5 billion–$2.6 billion, versus the $2.5 billion analyst consensus. Its projected loss per share of $0.25–$0.30 brackets the consensus loss of $0.27.
• Third-quarter results beat estimates: Rackspace reported a loss of $0.06 per share versus an expected $0.08 loss, and revenue of $609.1 million versus estimates of $574.0 million.
• Analyst sentiment remained cautious, with MarketBeat reporting an average “Reduce” rating and a $4 consensus price target; two cited analysts rated the stock Hold or Sell.

Rackspace Technology (NASDAQ:RXT - Get Free Report) issued an update on its FY 2026 earnings guidance on Tuesday. The company provided earnings per share guidance of -0.300--0.250 for the period, compared to the consensus estimate of -0.270. The company issued revenue guidance of $2.5 billion-$2.6 billion, compared to the consensus revenue estimate of $2.5 billion.

Wall Street Analysts Forecast Growth

RXT has been the subject of several analyst reports. Wall Street Zen cut Rackspace Technology from a "hold" rating to a "sell" rating in a report on Saturday, August 15th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Rackspace Technology in a report on Friday, August 28th. One analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Rackspace Technology presently has an average rating of "Reduce" and a consensus target price of $4.00.

Rackspace Technology Price Performance

NASDAQ:RXT opened at $2.72 on Tuesday. The firm has a market cap of $693.25 million, a price-to-earnings ratio of -4.18 and a beta of 3.29. The company has a 50 day moving average price of $3.31 and a 200-day moving average price of $3.25. Rackspace Technology has a 1-year low of $0.39 and a 1-year high of $8.60.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last posted its earnings results on Monday, November 9th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.08) by $0.02. The firm had revenue of $609.10 million during the quarter, compared to analyst estimates of $573.96 million. On average, sell-side analysts anticipate that Rackspace Technology will post -0.28 earnings per share for the current fiscal year.

Insider Activity

In other Rackspace Technology news, CEO Gajakarnan Kandiah sold 498,728 shares of Rackspace Technology stock in a transaction on Friday, September 4th. The shares were sold at an average price of $3.21, for a total value of $1,600,916.88. Following the completion of the transaction, the chief executive officer owned 3,684,955 shares of the company's stock, valued at approximately $11,828,705.55. The trade was a 11.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Dharmendra Sinha sold 107,002 shares of the company's stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $2.95, for a total transaction of $315,655.90. Following the completion of the transaction, the executive vice president owned 3,263,429 shares of the company's stock, valued at approximately $9,627,115.55. This trade represents a 3.17% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 714,141 shares of company stock worth $2,299,799 over the last three months. Corporate insiders own 2.30% of the company's stock.

Key Stories Impacting Rackspace Technology

Here are the key news stories impacting Rackspace Technology this week:

• Positive Sentiment: Rackspace reported a third-quarter loss of $0.06 per share, better than analysts’ expected $0.08 loss, while revenue of $609.1 million exceeded the $573.96 million estimate. The results could support investor optimism about execution. Rackspace Technology Reports Third Quarter 2026 Results
• Positive Sentiment: The company raised its FY 2026 earnings guidance and forecast revenue of $2.5 billion to $2.6 billion, versus the $2.5 billion consensus estimate. Its EPS guidance of a $0.30–$0.25 loss brackets the $0.27-loss consensus, making the update favorable overall but not uniformly above expectations. Rackspace Technology Raises Earnings Guidance for Fiscal Year 2026
• Positive Sentiment: Rackspace and Together AI announced an initial agreement to provide enterprise AI inference on NVIDIA GB300 NVL72 infrastructure operated by Rackspace, adding to its AI-related commercial pipeline. No deal value or expected revenue was provided. Rackspace and Together AI Announce Strategic Agreement
• Positive Sentiment: Blacksmith signed a multi-year agreement for dedicated AMD-powered compute and about 2 MW of storage capacity in Northern Virginia, expected to begin deploying in early 2027. The contract offers potential longer-term demand, though its financial contribution is unspecified. Blacksmith Taps Rackspace to Accelerate Software Deployments

About Rackspace Technology

Rackspace Technology, Inc is a technology services company that helps businesses design, build, operate and optimize information technology environments across public, private and hybrid clouds. Its offerings are intended to support organizations at various stages of cloud adoption, from migration and modernization to ongoing management and optimization.

The company provides managed cloud services for major cloud platforms, including Amazon Web Services, Microsoft Azure and Google Cloud.

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