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

Rackspace Technology (NASDAQ:RXT) updated its FY 2026 earnings guidance on Thursday. The company provided EPS guidance of -0.200–0.150 for the period, compared to the consensus EPS 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 Stock Up 56.4%

RXT traded up $1.98 during trading on Friday, hitting $5.50. The company had a trading volume of 151,627,549 shares, compared to its average volume of 23,086,412. The company has a market capitalization of $1.37 billion, a PE ratio of -5.79 and a beta of 2.23. Rackspace Technology has a one year low of $0.39 and a one year high of $6.00. The firm’s 50-day moving average price is $1.61 and its 200 day moving average price is $1.24.

Rackspace Technology (NASDAQ:RXT) last released its 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 during the quarter, compared to analysts’ expectations of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. Sell-side analysts forecast that Rackspace Technology will post -0.18 earnings per share for the current year.

Wall Street Analysts Forecast Growth

RXT has been the subject of a number of research reports. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a report on Thursday, January 22nd. Royal Bank Of Canada upped their price target on Rackspace Technology from $1.75 to $2.50 and gave the stock a “sector perform” rating in a research report on Friday, February 27th. Four equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Reduce” and an average price target of $1.93.

Insider Activity

In other news, EVP Dharmendra Kumar Sinha sold 188,123 shares of the stock in a transaction dated Wednesday, March 18th. The shares were 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 in the company, valued at $4,119,663.17. This represents a 7.63% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Mark A. Marino sold 14,058 shares of the firm’s stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $1.81, for a total value 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 $3,907,561.94. The trade was a 0.65% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 502,440 shares of company stock worth $867,173 over the last three months. Insiders own 2.90% of the company’s stock.

Rackspace Technology News Roundup

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

• Positive Sentiment: Rackspace announced a memorandum of understanding with AMD to build an Enterprise AI Cloud for regulated and sovereign workloads, a partnership that could strengthen its position in enterprise AI infrastructure and drive future revenue growth. Rackspace Technology and AMD Sign Memorandum of Understanding to Establish New Category of Governed Enterprise AI Infrastructure
• Positive Sentiment: The company reported first-quarter revenue of $678 million, which topped expectations and was up 2% year over year, suggesting demand remains stable despite ongoing profitability challenges. Rackspace Technology Reports First Quarter 2026 Results
• Positive Sentiment: Trading interest surged, with unusually large call option activity indicating that some investors are betting on further upside in RXT shares.
• Neutral Sentiment: Rackspace’s earnings per share came in at a loss of $0.06, worse than the consensus loss of $0.03, which tempers enthusiasm around the quarter. Rackspace Technology earnings report and conference call
• Neutral Sentiment: Management’s FY2026 guidance calls for adjusted EPS of -$0.20 to -$0.15 and revenue of $2.6 billion to $2.7 billion, which was roughly in line on sales but still points to continued losses. Rackspace Technology Reports First Quarter 2026 Results
• Negative Sentiment: Private cloud revenue declined 6% year over year, showing that some parts of the business remain under pressure even as public cloud improved. Rackspace Technology Reports First Quarter 2026 Results

Institutional Investors Weigh In On Rackspace Technology

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Janus Henderson Group PLC boosted its holdings in shares of Rackspace Technology by 70.7% in the 4th quarter. Janus Henderson Group PLC now owns 1,050,353 shares of the company’s stock valued at $1,020,000 after buying an additional 435,113 shares during the last quarter. Bridgeway Capital Management LLC increased its holdings in Rackspace Technology by 34.6% during the fourth quarter. Bridgeway Capital Management LLC now owns 350,000 shares of the company’s stock worth $340,000 after buying an additional 90,000 shares during the last quarter. Jump Financial LLC bought a new stake in Rackspace Technology during the fourth quarter worth $34,000. Wells Fargo & Company MN raised its position in Rackspace Technology by 13.4% during the fourth quarter. Wells Fargo & Company MN now owns 244,939 shares of the company’s stock worth $238,000 after acquiring an additional 28,885 shares in the last quarter. Finally, Federated Hermes Inc. lifted its stake in Rackspace Technology by 4.4% in the fourth quarter. Federated Hermes Inc. now owns 719,747 shares of the company’s stock valued at $699,000 after acquiring an additional 30,024 shares during the last quarter. Institutional investors own 82.48% of the company’s stock.

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.