Rackspace Technology, Inc.
- Open
- 6.54
- Day high
- 6.94
- Day low
- 6.29
- Prev close
- 6.53
- Volume
- 8.7M
- Mkt cap
- $1.7B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- -1.4
- P/S
- 0.6
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$1.3M over the last 3 months (0 open-market buys, 4 sales)
- 🏛Institutions accumulating (13F)
Rackspace Technology, Inc. (RXT) is a Technology company listed on NASDAQ. The stock is up 410% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 4 sales (SEC Form 4).
Rackspace Technology, Inc. (RXT) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
RXT earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $-0.03 | $-0.06 | -86.5% | $678M | +2.6% |
| Feb 26, 2026 | $-0.04 | $-0.13 | -234.8% | $683M | +1.5% |
| Nov 6, 2025 | $-0.03 | $-0.05 | -73.1% | $671M | -0.2% |
| Aug 7, 2025 | $-0.05 | $-0.06 | -20.0% | $666M | -0.1% |
| May 8, 2025 | $-0.08 | $-0.06 | +25.0% | $665M | +1.1% |
| Feb 20, 2025 | $-0.04 | $-0.02 | +50.0% | $686M | +1.6% |
| Aug 8, 2024 | $-0.11 | $-0.08 | +27.3% | $685M | +1.7% |
| May 15, 2024 | $-0.13 | $-0.11 | +15.4% | $691M | +1.0% |
| Mar 12, 2024 | $-0.02 | $-0.03 | -22.1% | $720M | +0.7% |
| Feb 22, 2023 | $0.06 | $0.06 | +0.0% | $787M | +1.4% |
| Nov 9, 2022 | $0.09 | $0.10 | +11.1% | $788M | +1.9% |
| Feb 22, 2022 | $0.24 | $0.25 | +4.2% | $777M | +0.8% |
RXT insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 22, 2026 | Garber Mitchell Alandirector | Grant | 37,950 | — |
| Jun 22, 2026 | BENJAMIN JEFFREY Ddirector | Grant | 71,156 | — |
| Jun 22, 2026 | Roberts Anthony C.director | Tax | 35,472 | $7.22 |
| Jun 22, 2026 | Roberts Anthony C.director | Grant | 37,950 | — |
| Jun 22, 2026 | Scott Anthonydirector | Grant | 37,950 | — |
| Jun 4, 2026 | TEAL-GUESS KELLIEofficer: Chief Human Resources Officer | Sell | 33,966 | $5.56 |
| Jun 4, 2026 | Kandiah Gajakarnan Vibushanandirector, officer: Chief Executive Officer | Tax | 8,059 | $5.92 |
| Jun 4, 2026 | Marino Mark A.officer: Chief Financial Officer | Grant | 806,451 | — |
| Jun 4, 2026 | Marino Mark A.officer: Chief Financial Officer | Sell | 48,099 | $5.56 |
| Jun 4, 2026 | SINHA DHARMENDRA KUMARofficer: EVP, President, Public Cloud | Grant | 1,142,473 | — |
| Jun 4, 2026 | SINHA DHARMENDRA KUMARofficer: EVP, President, Public Cloud | Sell | 48,099 | $5.56 |
| Jun 4, 2026 | Kandiah Gajakarnan Vibushanandirector, officer: Chief Executive Officer | Grant | 200,000 | — |
| Jun 4, 2026 | TEAL-GUESS KELLIEofficer: Chief Human Resources Officer | Grant | 443,548 | — |
| May 18, 2026 | TEAL-GUESS KELLIEofficer: Chief Human Resources Officer | Sell | 113,232 | $5.12 |
| Mar 18, 2026 | Marino Mark A.officer: Chief Financial Officer | Sell | 14,058 | $1.81 |
Source: RXT SEC Form 4 filings, latest Jun 22, 2026. For informational purposes only — not investment advice.
See the full RXT insider & 13F page →Rackspace Technology, Inc. company profile
Overview
Rackspace Technology, Inc. (NASDAQ:RXT) is a multi-cloud technology services company founded in 1998 and headquartered in San Antonio, Texas. The company went public in August 2020 following a period as a private entity. Rackspace has evolved from its origins as a web hosting provider into a comprehensive cloud services company that helps enterprises navigate the complexities of modern cloud infrastructure. The company has undergone significant operational restructuring in recent years while positioning itself as a hybrid cloud and artificial intelligence solutions provider serving customers worldwide.
Business
Rackspace Technology operates in the cloud services industry, providing managed cloud infrastructure and professional services to help businesses deploy, manage, and optimize their cloud computing environments. The cloud services industry emerged as businesses began migrating from traditional on-premises data centers to cloud-based infrastructure, which offers greater scalability, flexibility, and cost efficiency. Cloud computing allows companies to access computing resources like servers, storage, and applications over the internet rather than maintaining physical hardware. The company operates through two primary business segments. The Multicloud Services segment represents the majority of revenue and provides public and private cloud managed services. This includes managing customers' cloud infrastructure across multiple cloud platforms like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform, as well as maintaining private cloud environments. The segment also offers professional services for designing and building multi-cloud solutions and cloud-native applications. The Apps & Cross Platform segment focuses on managed applications, security services, and data services. This includes managing specific software applications for customers, providing cybersecurity threat detection and response services, and offering data management and analytics capabilities across multiple cloud platforms. Within these segments, Rackspace has identified key vertical markets including healthcare, financial services, government and sovereign cloud services, and energy sectors. The company has been particularly focused on growing its healthcare cloud business, which grew 34% year-over-year in 2024, and its sovereign cloud services for government clients, which surged 59% in the same period. These specialized services often require enhanced security, compliance, and data residency requirements that command premium pricing.
Revenue model
Rackspace generates revenue primarily through recurring managed services contracts and professional services engagements. The managed services model involves customers paying monthly or annual fees for Rackspace to operate and maintain their cloud infrastructure, applications, and security systems. This creates predictable, recurring revenue streams that typically span multi-year contract terms. Professional services revenue comes from one-time consulting and implementation projects where Rackspace designs, builds, and deploys cloud solutions for customers. The company's customers are primarily mid-market and enterprise businesses across various industries that lack the internal expertise or resources to manage complex cloud environments themselves. These organizations pay Rackspace to handle the technical complexities of cloud infrastructure so they can focus on their core business operations. Revenue is also generated through partnerships with major cloud providers like AWS, Microsoft, and Google, where Rackspace receives partner incentives and reseller margins for driving customer adoption of these platforms. Several factors influence Rackspace's profitability margins. Positive factors include the shift toward higher-value services like AI and data analytics, which command premium pricing compared to basic infrastructure management. The company's focus on specialized verticals like healthcare and government also supports better margins due to compliance and security requirements. However, margin pressures come from intense competition in the commodity cloud services market, customer demands for cost optimization during economic uncertainty, and the need for continuous investment in new technologies and certifications. The company has been selectively walking away from low-margin infrastructure deals to improve overall profitability, though this impacts near-term revenue growth.
Competitive moat
Rackspace's competitive moat is relatively narrow and primarily based on operational expertise and customer relationships rather than proprietary technology or significant barriers to entry. The company's main defensive position comes from its deep technical expertise in managing complex multi-cloud environments and its established relationships with major cloud providers like AWS, Microsoft, and Google. These partnerships provide Rackspace with preferential pricing, technical support, and co-marketing opportunities that smaller competitors may not access. The company has developed specialized knowledge in regulated industries like healthcare and government, where compliance requirements and security standards create some switching costs for customers. Once Rackspace has implemented and certified systems for these sensitive workloads, customers face significant effort and risk in transitioning to alternative providers. The company's FAIR (Foundry for AI by Rackspace) initiative represents an attempt to build expertise in the emerging artificial intelligence services market, though this remains early-stage. However, Rackspace faces substantial competitive threats that limit its moat strength. The major cloud providers themselves (AWS, Microsoft Azure, Google Cloud) offer competing managed services and have significantly greater resources to invest in new capabilities. Large consulting firms like Accenture and IBM also compete for enterprise cloud services contracts. Additionally, the commoditization of basic cloud infrastructure services continues to pressure margins and differentiation. The company's financial constraints have limited its ability to invest in research and development compared to better-capitalized competitors, making it challenging to maintain technological leadership in rapidly evolving areas like AI and machine learning.
Risks & safety
Rackspace faces significant financial stress with limited margin of safety, though recent debt restructuring has provided some breathing room. • Liquidity and Solvency Risk: The company maintains $128 million in cash but has negative shareholders' equity of approximately $1 billion. Current ratio of 0.79 indicates potential short-term liquidity challenges, with current liabilities exceeding current assets. • Debt Burden: Total liabilities of $4.04 billion significantly exceed total assets of $3.05 billion. However, the company completed major debt refinancing in 2023, reducing total debt by over $800 million and receiving $275 million in new cash infusion. • Cash Flow: Operating cash flow of $13 million and free cash flow of $4 million in Q1 2025 are positive but minimal. Full year 2024 showed negative free cash flow of $71 million, indicating ongoing cash generation challenges. • Valuation Metrics: Trading at extremely low multiples due to financial distress - negative P/E ratios due to losses, negative EV/EBITDA when EBITDA is negative. Current price of $1.30 represents significant decline from historical levels. • Other Considerations: Revenue declining 4% year-over-year with continued pressure on margins. The company is in active turnaround mode with management expecting stabilization in second half of 2025.
Recent development
Over the past few years, Rackspace has undergone a comprehensive operational turnaround focused on three strategic priorities: stabilizing operations, repositioning as a hybrid cloud and AI solutions company, and improving its capital structure. The company completed a major debt refinancing in 2023 that reduced total debt by over $800 million and provided $275 million in new cash, addressing immediate liquidity concerns. Strategically, Rackspace has pivoted toward higher-value services and specialized vertical markets. The company launched its FAIR (Foundry for AI by Rackspace) initiative to capitalize on the artificial intelligence opportunity, securing over 50 AI customers with nearly 200 opportunities in the pipeline. While AI currently represents less than 2% of revenue, management expects this to grow to 5% or more in coming years. The company has also invested heavily in healthcare and sovereign cloud services, with healthcare revenue growing 34% year-over-year and sovereign revenue surging 59% in 2024. On the product development front, Rackspace has launched numerous new offerings including OpenStack Flex for private cloud, Edge Security services, enhanced managed cloud operations for databases, and AI-optimized platforms with GPU-as-a-Service capabilities. The company has strengthened its partnerships with major cloud providers, becoming recognized as a leader in the AWS Ecosystem Partners program and expanding its Google Cloud Center of Excellence to 250 certified resources. These developments represent Rackspace's attempt to differentiate itself through specialized expertise rather than competing solely on commodity infrastructure services.
RXT company profile · for informational purposes only — not investment advice.
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