Rackspace Technology (NASDAQ:RXT) Shares Down 9.2% – Here’s Why

Rackspace Technology, Inc. (NASDAQ:RXT) shares were down 9.2% during mid-day trading on Wednesday . The stock traded as low as $2.17 and last traded at $2.2250. Approximately 4,403,095 shares were traded during trading, a decline of 77% from the average daily volume of 19,531,855 shares. The stock had previously closed at $2.45.

More Rackspace Technology News

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

Wall Street Analysts Forecast Growth

Several equities analysts have commented on RXT shares. 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 objective on shares of Rackspace Technology from $1.75 to $2.50 and gave the stock a “sector perform” rating in a report on Friday, February 27th. Four investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Reduce” and a consensus price target of $1.93.

Rackspace Technology Price Performance

The firm has a 50-day moving average price of $1.61 and a two-hundred day moving average price of $1.24.

Rackspace Technology (NASDAQ:RXT) last released its earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.03) by ($0.03). The company had revenue of $678.10 million for the quarter, compared to analysts’ expectations of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. On average, sell-side analysts anticipate that Rackspace Technology, Inc. will post -0.18 EPS for the current fiscal year.

Insider Activity

In other Rackspace Technology news, CFO Mark A. Marino sold 14,058 shares of the firm’s stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total value of $25,444.98. Following the completion of the sale, the chief financial officer owned 2,158,874 shares in the company, valued at approximately $3,907,561.94. This trade represents a 0.65% decrease in their position. 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 Rackspace Technology stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total value of $340,502.63. Following the sale, the executive vice president directly owned 2,276,057 shares in the company, valued at $4,119,663.17. The trade was a 7.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 502,440 shares of company stock valued at $867,173. 2.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Rackspace Technology

A number of hedge funds have recently made changes to their positions in RXT. Savant Capital LLC acquired a new position in Rackspace Technology in the third quarter worth about $33,000. R Squared Ltd boosted its holdings in Rackspace Technology by 74.3% during the third quarter. R Squared Ltd now owns 25,127 shares of the company’s stock valued at $35,000 after purchasing an additional 10,707 shares in the last quarter. Creative Planning grew its stake in shares of Rackspace Technology by 114.2% in the 2nd quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after purchasing an additional 13,708 shares during the period. Abel Hall LLC acquired a new position in shares of Rackspace Technology in the 1st quarter worth approximately $30,000. Finally, Engineers Gate Manager LP lifted its position in shares of 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 buying an additional 11,141 shares during the period. Institutional investors and hedge funds 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.