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

Rackspace Technology (NASDAQ:RXT) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of -0.200–0.150 for the period, compared to the consensus estimate of -0.110. The company issued revenue guidance of $2.6 billion-$2.7 billion, compared to the consensus revenue estimate of $2.6 billion.

Analyst Upgrades and Downgrades

RXT has been the topic of a number of recent research reports. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a report on Thursday, January 22nd. Royal Bank Of Canada increased their price objective on Rackspace Technology from $1.75 to $2.50 and gave the company a “sector perform” rating in a report on Friday, February 27th. Four investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Reduce” and a consensus target price of $1.93.

Rackspace Technology Stock Performance

Shares of NASDAQ RXT opened at $2.27 on Thursday. The company’s 50 day moving average price is $1.57 and its 200-day moving average price is $1.23. Rackspace Technology has a 52-week low of $0.39 and a 52-week high of $2.74. The company has a market capitalization of $565.73 million, a P/E ratio of -2.39 and a beta of 2.23.

Rackspace Technology (NASDAQ:RXT) last announced its earnings results on Thursday, February 26th. The company reported ($0.01) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.04) by $0.03. The firm had revenue of $682.80 million for the quarter, compared to the consensus estimate of $672.56 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.15 EPS. Analysts forecast that Rackspace Technology will post -0.18 earnings per share for the current year.

Insider Transactions at Rackspace Technology

In related news, EVP Dharmendra Kumar Sinha sold 188,123 shares of the company’s stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total transaction of $340,502.63. Following the sale, the executive vice president owned 2,276,057 shares in the company, valued at $4,119,663.17. This represents a 7.63% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Mark A. Marino sold 234,683 shares of the firm’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 sale, the chief financial officer directly owned 2,193,115 shares of the company’s stock, valued at $3,574,777.45. This represents a 9.67% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 502,440 shares of company stock worth $867,173 over the last three months. 2.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On Rackspace Technology

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Wells Fargo & Company MN boosted its position in shares of Rackspace Technology by 13.4% during the 4th quarter. Wells Fargo & Company MN now owns 244,939 shares of the company’s stock worth $238,000 after purchasing an additional 28,885 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its stake in Rackspace Technology by 46,034.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 279,115 shares of the company’s stock worth $271,000 after buying an additional 278,510 shares during the period. Verition Fund Management LLC bought a new position in Rackspace Technology in the third quarter worth approximately $151,000. Alliancebernstein L.P. grew its stake in Rackspace Technology by 4.0% in the third quarter. Alliancebernstein L.P. now owns 290,750 shares of the company’s stock valued at $410,000 after acquiring an additional 11,300 shares during the period. Finally, Bridgeway Capital Management LLC acquired a new stake in Rackspace Technology in the third quarter valued at approximately $367,000. 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.