Rackspace Technology (NASDAQ:RXT) Releases Q2 2026 Earnings Guidance

Key Points

• Rackspace Technology issued second-quarter 2026 guidance calling for EPS of -$0.11 to -$0.08 and revenue of $641 million to $649 million, both below Wall Street expectations.
• The company also updated its FY 2026 guidance, following a prior quarter in which it reported a smaller-than-expected loss but revenue above analyst estimates.
• Shares fell 2.7% after the guidance update, while analysts currently have a consensus rating of “Reduce” with an average price target of $2.70.

Rackspace Technology (NASDAQ:RXT - Get Free Report) issued an update on its second quarter 2026 earnings guidance on Thursday morning. The company provided EPS guidance of -0.110--0.080 for the period, compared to the consensus estimate of -0.030. The company issued revenue guidance of $641.0 million-$649.0 million, compared to the consensus revenue estimate of $657.1 million. Rackspace Technology also updated its FY 2026 guidance to EPS.

Rackspace Technology Stock Down 2.7%

Shares of NASDAQ RXT opened at $6.58 on Thursday. The firm's fifty day moving average is $5.29 and its 200 day moving average is $2.63. Rackspace Technology has a 52 week low of $0.39 and a 52 week high of $8.60. The company has a market cap of $1.64 billion, a price-to-earnings ratio of -10.79 and a beta of 2.99.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.03). The business had revenue of $678.10 million for the quarter, compared to analyst estimates of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200--0.150 EPS.

Analyst Ratings Changes

A number of research firms have weighed in on RXT. Royal Bank Of Canada upped their target price on Rackspace Technology from $2.50 to $4.00 and gave the stock a "sector perform" rating in a report on Wednesday, June 17th. Weiss Ratings reissued a "sell (d-)" rating on shares of Rackspace Technology in a research report on Tuesday, June 2nd. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average price target of $2.70.

Insider Activity at Rackspace Technology

In related news, CFO Mark A. Marino sold 48,099 shares of the company's stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $5.56, for a total transaction of $267,430.44. Following the completion of the sale, the chief financial officer owned 3,370,431 shares in the company, valued at approximately $18,739,596.36. This represents a 1.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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. 2.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Rackspace Technology

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Creative Planning lifted its position in shares of Rackspace Technology by 114.2% during the 2nd quarter. Creative Planning now owns 25,715 shares of the company's stock valued at $33,000 after buying an additional 13,708 shares in the last quarter. Jump Financial LLC purchased a new position in shares of Rackspace Technology in the fourth quarter valued at about $34,000. Engineers Gate Manager LP boosted its stake in shares of Rackspace Technology by 47.1% in the second quarter. Engineers Gate Manager LP now owns 34,777 shares of the company's stock worth $45,000 after acquiring an additional 11,141 shares during the period. Steward Partners Investment Advisory LLC lifted its holdings in Rackspace Technology by 3,385.4% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 64,828 shares of the company's stock worth $63,000 after purchasing an additional 62,968 shares in the last quarter. Finally, XTX Topco Ltd boosted its stake in Rackspace Technology by 62.8% in the 2nd quarter. XTX Topco Ltd now owns 57,682 shares of the company's stock worth $74,000 after purchasing an additional 22,243 shares during the period. 82.48% of the stock is currently owned by hedge funds and other institutional investors.

About Rackspace Technology

Rackspace Technology NASDAQ: RXT is a leading provider of managed multi-cloud solutions and services, specializing in the deployment, management and optimization of public and private cloud environments. The company helps organizations design and operate applications across platforms such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud and its own private cloud infrastructure. Rackspace's core offerings include cloud migration, application modernization, data protection, security services and 24x7x365 operational support.

Beyond cloud hosting, Rackspace offers a range of professional services designed to accelerate digital transformation initiatives.

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