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

Key Points

• FY2026 guidance: Rackspace issued EPS guidance of -0.200 to -0.150, below the consensus of -0.110, and revenue guidance of $2.6B–$2.7B, roughly in line with the $2.6B consensus.
• Recent quarter beat expectations, reporting ($0.01) EPS vs. ($0.04) expected and $682.8M revenue vs. $672.6M expected, while analysts on average forecast about -0.18 EPS for the fiscal year.
• Market and sentiment snapshot: RXT trades near $2.27 with a $565.7M market cap and a 52-week range of $0.39–$2.74; the stock carries an average analyst rating of "Reduce" (avg. price target $1.93) and has seen notable insider selling (502,440 shares in the past 90 days).

Rackspace Technology (NASDAQ:RXT - Get Free Report) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share guidance of -0.200--0.150 for the period, compared to the consensus earnings per share estimate of -0.110. The company issued revenue guidance of $2.6 billion-$2.7 billion, compared to the consensus revenue estimate of $2.6 billion.

Rackspace Technology Price Performance

Shares of NASDAQ RXT opened at $2.27 on Thursday. Rackspace Technology has a one year low of $0.39 and a one year high of $2.74. The firm has a market cap of $565.73 million, a price-to-earnings ratio of -2.39 and a beta of 2.23. The stock's fifty day moving average price is $1.57 and its two-hundred day moving average price is $1.23.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.04) by $0.03. The business had revenue of $682.80 million during the quarter, compared to the consensus estimate of $672.56 million. Rackspace Technology has set its FY 2026 guidance at -0.200--0.15 EPS. On average, equities analysts anticipate that Rackspace Technology will post -0.18 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

RXT has been the topic of a number of recent research reports. Royal Bank Of Canada raised their price objective on Rackspace Technology from $1.75 to $2.50 and gave the stock a "sector perform" rating in a research note on Friday, February 27th. Weiss Ratings reissued a "sell (d-)" rating on shares of Rackspace Technology in a report on Thursday, January 22nd. Four equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Reduce" and an average price target of $1.93.

Insider Buying and Selling at Rackspace Technology

In other Rackspace Technology news, CFO Mark A. Marino sold 14,058 shares of the business's stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total transaction of $25,444.98. Following the completion of the transaction, the chief financial officer owned 2,158,874 shares of the company's stock, valued at approximately $3,907,561.94. The trade was a 0.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of the stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total transaction of $340,502.63. Following the completion of the transaction, the executive vice president directly owned 2,276,057 shares of the company's stock, valued at $4,119,663.17. This trade represents a 7.63% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 502,440 shares of company stock valued at $867,173. 2.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Engineers Gate Manager LP grew its position in Rackspace Technology by 47.1% during the 2nd 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 last quarter. Alliancebernstein L.P. raised its position in Rackspace Technology by 4.0% in the third quarter. Alliancebernstein L.P. now owns 290,750 shares of the company's stock valued at $410,000 after purchasing an additional 11,300 shares during the last quarter. Creative Planning boosted its stake in shares of Rackspace Technology by 114.2% during the second quarter. Creative Planning now owns 25,715 shares of the company's stock valued at $33,000 after purchasing an additional 13,708 shares in the last quarter. XTX Topco Ltd grew its holdings in shares of Rackspace Technology by 62.8% during the second 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 last quarter. Finally, BNP Paribas Financial Markets increased its stake in shares of Rackspace Technology by 25.4% in the second quarter. BNP Paribas Financial Markets now owns 119,493 shares of the company's stock valued at $153,000 after buying an additional 24,173 shares during the period. 82.48% of the stock is currently owned by institutional investors and hedge funds.

Rackspace Technology Company Profile

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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