Rackspace Technology (NASDAQ:RXT – Get Free Report) issued its quarterly earnings results on Thursday. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.03), Zacks reports. The business had revenue of $678.10 million during the quarter, compared to analyst estimates of $660.83 million. Rackspace Technology updated its FY 2026 guidance to -0.200–0.150 EPS.
Here are the key takeaways from Rackspace Technology’s conference call:
- AMD MoU announced to integrate Instinct GPUs, EPYC CPUs and ROCm into a fully managed, governed enterprise AI stack (definitive agreement expected near term), creating a managed alternative to commodity GPU rental.
- Palantir partnership and FDE model is accelerating sales and deployment — first joint deal closed in 41 days and a customer case reduced quoting time by 94%, with the model expanding into EMEA and being used internally.
- Public Cloud momentum — Q1 public cloud revenue was $443M, up 7% YoY, with services revenue up 10%, and Rackspace positioning to operate production inference and governed AI workloads.
- Private Cloud revenue timing — Q1 Private Cloud revenue was $235M, down 6% YoY due to timing of a large healthcare onboarding, though segment operating margin improved and management reaffirmed full?year guidance.
- Capital and cash flow — company repurchased ~$96M of debt and emphasizes deleveraging ahead of 2028 maturities, but ended Q1 with $94M cash, $295M total liquidity and free cash flow of -$9M.
Rackspace Technology Trading Up 56.4%
RXT traded up $1.98 during trading on Friday, hitting $5.50. 151,627,549 shares of the company traded hands, compared to its average volume of 23,086,412. The company has a market cap of $1.37 billion, a PE ratio of -5.79 and a beta of 2.23. The stock’s 50-day simple moving average is $1.61 and its two-hundred day simple moving average is $1.24. Rackspace Technology has a 1 year low of $0.39 and a 1 year high of $6.00.
Trending Headlines about Rackspace Technology
- Positive Sentiment: Rackspace announced a memorandum of understanding with AMD to build an Enterprise AI Cloud for regulated and sovereign workloads, a partnership that could strengthen its position in enterprise AI infrastructure and drive future revenue growth. Rackspace Technology and AMD Sign Memorandum of Understanding to Establish New Category of Governed Enterprise AI Infrastructure
- Positive Sentiment: The company reported first-quarter revenue of $678 million, which topped expectations and was up 2% year over year, suggesting demand remains stable despite ongoing profitability challenges. Rackspace Technology Reports First Quarter 2026 Results
- Positive Sentiment: Trading interest surged, with unusually large call option activity indicating that some investors are betting on further upside in RXT shares.
- Neutral Sentiment: Rackspace’s earnings per share came in at a loss of $0.06, worse than the consensus loss of $0.03, which tempers enthusiasm around the quarter. Rackspace Technology earnings report and conference call
- Neutral Sentiment: Management’s FY2026 guidance calls for adjusted EPS of -$0.20 to -$0.15 and revenue of $2.6 billion to $2.7 billion, which was roughly in line on sales but still points to continued losses. Rackspace Technology Reports First Quarter 2026 Results
- Negative Sentiment: Private cloud revenue declined 6% year over year, showing that some parts of the business remain under pressure even as public cloud improved. Rackspace Technology Reports First Quarter 2026 Results
Insider Buying and Selling at Rackspace Technology
In other Rackspace Technology news, CFO Mark A. Marino sold 14,058 shares of the business’s stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $1.81, for a total value of $25,444.98. Following the sale, the chief financial officer owned 2,158,874 shares in the company, valued at $3,907,561.94. The trade was a 0.65% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of the stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $1.81, for a total transaction of $340,502.63. Following the transaction, the executive vice president directly owned 2,276,057 shares of the company’s stock, valued at $4,119,663.17. This trade represents a 7.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 502,440 shares of company stock worth $867,173. Corporate insiders own 2.90% of the company’s stock.
Hedge Funds Weigh In On Rackspace Technology
Several institutional investors have recently added to or reduced their stakes in RXT. Janus Henderson Group PLC increased its stake in Rackspace Technology by 70.7% in the 4th quarter. Janus Henderson Group PLC now owns 1,050,353 shares of the company’s stock worth $1,020,000 after acquiring an additional 435,113 shares during the last quarter. Bridgeway Capital Management LLC boosted its position in shares of Rackspace Technology by 34.6% during the 4th quarter. Bridgeway Capital Management LLC now owns 350,000 shares of the company’s stock valued at $340,000 after acquiring an additional 90,000 shares during the last quarter. Jump Financial LLC bought a new position in shares of Rackspace Technology during the 4th quarter valued at approximately $34,000. Wells Fargo & Company MN grew its holdings in shares of Rackspace Technology by 13.4% in the fourth quarter. Wells Fargo & Company MN now owns 244,939 shares of the company’s stock valued at $238,000 after purchasing an additional 28,885 shares in the last quarter. Finally, Federated Hermes Inc. grew its holdings in shares of Rackspace Technology by 4.4% in the fourth quarter. Federated Hermes Inc. now owns 719,747 shares of the company’s stock valued at $699,000 after purchasing an additional 30,024 shares in the last quarter. Hedge funds and other institutional investors own 82.48% of the company’s stock.
Analyst Ratings Changes
A number of equities analysts have recently weighed in on RXT shares. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research note on Thursday, January 22nd. Royal Bank Of Canada lifted their target price on Rackspace Technology from $1.75 to $2.50 and gave the company a “sector perform” rating in a research note on Friday, February 27th. Four analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average price target of $1.93.
Check Out Our Latest Research Report on RXT
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.
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