Rackspace Technology (NASDAQ:RXT) Issues 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.

Analysts Set New Price Targets

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

Rackspace Technology Stock Performance

Shares of Rackspace Technology stock opened at $2.72 on Tuesday. The firm has a market capitalization of $693.25 million, a price-to-earnings ratio of -4.18 and a beta of 3.29. Rackspace Technology has a fifty-two week low of $0.39 and a fifty-two week high of $8.60. The stock has a 50 day moving average of $3.31 and a 200 day moving average of $3.25.

Rackspace Technology (NASDAQ:RXT) last posted its earnings results on Monday, November 9th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.08) by $0.02. The business had revenue of $609.10 million for the quarter, compared to analyst estimates of $573.96 million. Analysts forecast that Rackspace Technology will post -0.28 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Gajakarnan Kandiah sold 498,728 shares of the business’s stock in a transaction dated 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 directly owned 3,684,955 shares in the company, valued at approximately $11,828,705.55. The trade was a 11.92% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 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 business’s stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $2.95, for a total transaction of $315,655.90. Following the completion of the sale, the executive vice president owned 3,263,429 shares in the company, valued at approximately $9,627,115.55. This trade represents a 3.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. In the last quarter, insiders have sold 714,141 shares of company stock valued at $2,299,799. 2.30% of the stock is owned by company insiders.

Rackspace Technology News Summary

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

• Positive Sentiment: Rackspace reported a third-quarter loss of $0.06 per share, better than analysts’ expected $0.08 loss, while revenue of $609.1 million exceeded the $573.96 million estimate. The results could support investor optimism about execution. Rackspace Technology Reports Third Quarter 2026 Results
• Positive Sentiment: The company raised its FY 2026 earnings guidance and forecast revenue of $2.5 billion to $2.6 billion, versus the $2.5 billion consensus estimate. Its EPS guidance of a $0.30–$0.25 loss brackets the $0.27-loss consensus, making the update favorable overall but not uniformly above expectations. Rackspace Technology Raises Earnings Guidance for Fiscal Year 2026
• Positive Sentiment: Rackspace and Together AI announced an initial agreement to provide enterprise AI inference on NVIDIA GB300 NVL72 infrastructure operated by Rackspace, adding to its AI-related commercial pipeline. No deal value or expected revenue was provided. Rackspace and Together AI Announce Strategic Agreement
• Positive Sentiment: Blacksmith signed a multi-year agreement for dedicated AMD-powered compute and about 2 MW of storage capacity in Northern Virginia, expected to begin deploying in early 2027. The contract offers potential longer-term demand, though its financial contribution is unspecified. Blacksmith Taps Rackspace to Accelerate Software Deployments

About Rackspace Technology

Rackspace Technology, Inc is a technology services company that helps businesses design, build, operate and optimize information technology environments across public, private and hybrid clouds. Its offerings are intended to support organizations at various stages of cloud adoption, from migration and modernization to ongoing management and optimization.

The company provides managed cloud services for major cloud platforms, including Amazon Web Services, Microsoft Azure and Google Cloud.