Rackspace Technology (NASDAQ:RXT) Issues Q2 2026 Earnings Guidance

Rackspace Technology (NASDAQ:RXT) updated its second quarter 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of -0.110–0.080 for the period, compared to the consensus earnings per share estimate of -0.030. The company issued revenue guidance of $641.0 million-$649.0 million, compared to the consensus revenue estimate of $657.1 million. Rackspace Technology also updated its FY 2026 guidance to EPS.

Rackspace Technology Trading Down 2.7%

Shares of Rackspace Technology stock opened at $6.58 on Thursday. The firm has a market cap of $1.64 billion, a PE ratio of -10.79 and a beta of 2.99. Rackspace Technology has a 12 month low of $0.39 and a 12 month high of $8.60. The stock has a 50 day moving average of $5.29 and a 200 day moving average of $2.63.

Rackspace Technology (NASDAQ:RXT) last posted its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates 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.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the company. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a research report on Tuesday, June 2nd. Royal Bank Of Canada increased their target price on shares of Rackspace Technology from $2.50 to $4.00 and gave the company a “sector perform” rating in a research note on Wednesday, June 17th. Two investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Reduce” and a consensus price target of $2.70.

Insider Buying and Selling at Rackspace Technology

In related news, CFO Mark A. Marino sold 48,099 shares of the company’s stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $5.56, for a total value of $267,430.44. Following the completion of the sale, the chief financial officer directly owned 3,370,431 shares of the company’s stock, valued at $18,739,596.36. This represents a 1.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through 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. 2.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the stock. Two Sigma Investments LP raised its holdings in Rackspace Technology by 368.4% in the third quarter. Two Sigma Investments LP now owns 673,689 shares of the company’s stock worth $950,000 after purchasing an additional 529,862 shares in the last quarter. Janus Henderson Group PLC increased its position in shares of Rackspace Technology by 70.7% during the fourth quarter. Janus Henderson Group PLC now owns 1,050,353 shares of the company’s stock worth $1,020,000 after purchasing an additional 435,113 shares in the last quarter. Vanguard Group Inc. lifted its holdings in shares of Rackspace Technology by 6.1% during the 3rd quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company’s stock valued at $8,867,000 after purchasing an additional 359,087 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Rackspace Technology by 17.9% during the 2nd quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock valued at $2,643,000 after purchasing an additional 313,636 shares during the last quarter. Finally, JPMorgan Chase & Co. boosted its position in shares of Rackspace Technology by 25.5% in the 2nd quarter. JPMorgan Chase & Co. now owns 1,437,879 shares of the company’s stock worth $1,840,000 after purchasing an additional 292,249 shares in the last quarter. 82.48% of the stock is owned by institutional investors.

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.