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

Rackspace Technology (NASDAQ:RXT) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of -0.300–0.250 for the period, compared to the consensus EPS 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.

Rackspace Technology Trading Up 8.5%

NASDAQ:RXT opened at $2.95 on Tuesday. Rackspace Technology has a 1-year low of $0.39 and a 1-year high of $8.60. The firm has a market capitalization of $752.38 million, a price-to-earnings ratio of -4.38 and a beta of 3.29. The business’s 50-day moving average price is $3.31 and its two-hundred day moving average price is $3.25.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings data 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 company had revenue of $609.10 million for the quarter, compared to the consensus estimate of $573.96 million. Sell-side analysts predict that Rackspace Technology will post -0.28 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on RXT shares. Weiss Ratings restated 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 research report on Saturday, August 15th. One analyst has rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and a consensus target price of $4.00.

Insider Buying and Selling at Rackspace Technology

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 transaction of $1,600,916.88. Following the sale, the chief executive officer owned 3,684,955 shares of the company’s stock, valued at $11,828,705.55. The trade was a 11.92% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at 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, CFO Mark Marino sold 51,373 shares of the firm’s stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $2.95, for a total transaction of $151,550.35. Following the sale, the chief financial officer directly owned 2,865,853 shares of the company’s stock, valued at $8,454,266.35. This trade represents a 1.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 90 days, insiders sold 714,141 shares of company stock valued at $2,299,799. Insiders own 2.30% of the company’s stock.

Trending Headlines about Rackspace Technology

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

Rackspace Technology Company Profile

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.