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

Rackspace Technology (NASDAQ:RXT) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of -0.200–0.15 for the period, compared to the consensus EPS estimate of -0.030. The company issued revenue guidance of $2.6 billion-$2.7 billion, compared to the consensus revenue estimate of $2.7 billion.

Wall Street Analyst Weigh In

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 research report on Thursday, January 22nd. Royal Bank Of Canada decreased their target price on Rackspace Technology from $2.00 to $1.75 and set a “sector perform” rating on the stock in a research report on Monday, November 10th. Four equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Rackspace Technology has an average rating of “Reduce” and an average target price of $1.51.

Rackspace Technology Price Performance

Rackspace Technology stock traded up $0.93 during mid-day trading on Thursday, hitting $2.28. The company’s stock had a trading volume of 95,295,955 shares, compared to its average volume of 28,949,621. Rackspace Technology has a 52-week low of $0.39 and a 52-week high of $2.67. The company has a market cap of $554.17 million, a PE ratio of -2.16 and a beta of 2.18. The firm’s 50 day moving average is $0.88 and its 200 day moving average is $1.16.

Insider Buying and Selling

In related news, CFO Mark A. Marino sold 234,683 shares of the business’s stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $1.63, for a total value of $382,533.29. Following the completion of the sale, the chief financial officer directly owned 2,193,115 shares in the company, valued at approximately $3,574,777.45. The trade was a 9.67% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Dharmendra Kumar Sinha sold 59,322 shares of the stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $1.01, for a total value of $59,915.22. Following the transaction, the executive vice president owned 2,509,573 shares in the company, valued at approximately $2,534,668.73. This trade represents a 2.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 385,156 shares of company stock valued at $537,246 over the last quarter. Corporate insiders own 2.90% of the company’s stock.

Institutional Investors Weigh In On Rackspace Technology

Hedge funds and other institutional investors have recently modified their holdings of the stock. AQR Capital Management LLC grew its position in Rackspace Technology by 228.6% in the first quarter. AQR Capital Management LLC now owns 264,565 shares of the company’s stock valued at $447,000 after acquiring an additional 184,058 shares during the period. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Rackspace Technology in the 1st quarter valued at $113,000. Geode Capital Management LLC grew its holdings in shares of Rackspace Technology by 17.9% in the 2nd quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock worth $2,643,000 after purchasing an additional 313,636 shares during the last quarter. Creative Planning increased 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 worth $33,000 after purchasing an additional 13,708 shares in the last quarter. Finally, JPMorgan Chase & Co. lifted its holdings in Rackspace Technology by 25.5% during the 2nd quarter. JPMorgan Chase & Co. now owns 1,437,879 shares of the company’s stock valued at $1,840,000 after purchasing an additional 292,249 shares during the last quarter. 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.