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

Rackspace Technology (NASDAQ:RXT) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of -0.300–0.250 for the period, compared to the consensus estimate of -0.270. The company issued revenue guidance of $2.5 billion-$2.6 billion, compared to the consensus revenue estimate of $2.5 billion.

Analyst Ratings Changes

A number of research firms have recently commented on RXT. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a research note on Friday, August 28th. Wall Street Zen downgraded shares of Rackspace Technology from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Reduce” and an average price target of $4.00.

Rackspace Technology Price Performance

Shares of RXT opened at $2.68 on Wednesday. Rackspace Technology has a 1 year low of $0.39 and a 1 year high of $8.60. The stock’s fifty day moving average price is $3.30 and its two-hundred day moving average price is $3.26. The firm has a market cap of $683.05 million, a PE ratio of -4.62 and a beta of 3.29.

Rackspace Technology (NASDAQ:RXT) last posted its quarterly earnings results on Monday, November 9th. The company reported ($0.06) earnings per share for the quarter, topping the consensus estimate of ($0.08) by $0.02. The firm had revenue of $609.10 million for the quarter, compared to the consensus estimate of $573.96 million. Sell-side analysts anticipate that Rackspace Technology will post -0.28 earnings per share for the current fiscal year.

Insider Buying and Selling at Rackspace Technology

In other news, CEO Gajakarnan Kandiah sold 498,728 shares of the business’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $3.21, for a total value of $1,600,916.88. Following the sale, the chief executive officer owned 3,684,955 shares of the company’s stock, valued at $11,828,705.55. The trade was a 11.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at 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. Also, EVP Dharmendra Sinha sold 107,002 shares of the company’s stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $2.95, for a total transaction of $315,655.90. Following the sale, the executive vice president owned 3,263,429 shares in the company, valued at $9,627,115.55. The trade was a 3.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. Insiders have sold 714,141 shares of company stock worth $2,299,799 over the last ninety days. Company insiders own 2.30% of the company’s stock.

Key Headlines Impacting Rackspace Technology

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

• Positive Sentiment: Q3 results beat analyst expectations: Rackspace reported revenue of $609.1 million, above the roughly $574 million consensus, and a loss of $0.06 per share versus the expected $0.08 loss. The revenue and earnings beat may support investor sentiment. Rackspace Technology Reports Third Quarter 2026 Results
• Positive Sentiment: Enterprise AI infrastructure deal: Rackspace and Together AI agreed to support enterprise AI inference using NVIDIA GB300 NVL72 infrastructure operated by Rackspace, offering a potential foothold in AI workloads. Rackspace and Together AI Announce Strategic Agreement
• Positive Sentiment: Multi-year Blacksmith agreement: Rackspace will provide dedicated AMD EPYC computing and storage capacity in Northern Virginia, totaling about 2 megawatts. Deployment is expected to start in early 2027, adding a long-term customer commitment. Blacksmith Taps Rackspace to Accelerate Software Deployments
• Neutral Sentiment: FY 2026 outlook updated: Rackspace guided to revenue of $2.5 billion–$2.6 billion, compared with a $2.5 billion consensus estimate. Its EPS outlook of a $0.25–$0.30 loss brackets the consensus estimate of a $0.27 loss, leaving the earnings outlook broadly in line despite the higher revenue range. Rackspace Technology Raises Earnings Guidance for Fiscal 2026

Rackspace Technology Company Profile

Rackspace Technology, Inc. (NASDAQ: RXT) provides multicloud technology services to businesses and public-sector organizations. Its offerings include cloud strategy and migration, infrastructure management, application modernization, data services, and cybersecurity. The company helps customers operate workloads across public cloud platforms, including Amazon Web Services, Microsoft Azure, and Google Cloud, as well as private and hybrid cloud environments. Its services include consulting and ongoing support tailored to customers’ technology needs.