Rackspace Technology (NASDAQ:RXT) Releases Q2 2026 Earnings Guidance

Posted by George Bondi on Jul 10th, 2026

Rackspace Technology (NASDAQ:RXT – Get Free Report) updated its second quarter 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of -0.110–0.080 for the period, compared to the consensus EPS estimate of -0.030. The company issued revenue guidance of $641.0 million-$649.0 million, compared to the consensus revenue estimate of $657.1 million. Rackspace Technology also updated its FY 2026 guidance to EPS.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on RXT. Royal Bank Of Canada raised their price objective on Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a report on Wednesday, June 17th. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a report on Tuesday, June 2nd. Two equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Reduce” and an average price target of $2.70.

Check Out Our Latest Research Report on Rackspace Technology

Rackspace Technology Stock Performance

Rackspace Technology stock opened at $4.37 on Friday. The firm has a market capitalization of $1.09 billion, a PE ratio of -7.16 and a beta of 2.99. Rackspace Technology has a one year low of $0.39 and a one year high of $8.60. The stock’s 50 day moving average price is $5.34 and its 200 day moving average price is $2.65.

Rackspace Technology (NASDAQ:RXT – Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.03). The firm had revenue of $678.10 million for the quarter, compared to the consensus estimate of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS.

Insiders Place Their Bets

In other news, CFO Mark A. Marino sold 48,099 shares of the firm’s stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $5.56, for a total transaction of $267,430.44. Following the completion of the sale, the chief financial officer directly owned 3,370,431 shares in the company, valued at $18,739,596.36. This trade represents a 1.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 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. 2.30% of the stock is currently owned by insiders.

Rackspace Technology News Summary

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

Positive Sentiment: Rackspace announced new AI partnerships, including a definitive operating framework with Palantir, and said it is accelerating its enterprise AI growth strategy. Management highlighted these deals as a path to stronger growth in 2027 and beyond. Rackspace Technology Launches Operating Framework with Palantir for Regulated Enterprises to Accelerate Enterprise AI in Production
Positive Sentiment: Some market commentary argued Rackspace may be undervalued after a return to year-over-year revenue growth in Q1 and higher operating profit, with AI partnerships improving its long-term narrative. Rackspace: Worth Buying The Dip As AI Partnerships Turn Growth Trajectory Around
Neutral Sentiment: Unusually heavy call-option buying suggests some traders are positioning for a rebound, but this does not change the company’s fundamentals on its own.
Neutral Sentiment: Rackspace also discussed its enterprise AI strategy in a strategic update and transcript, reinforcing that management is leaning into AI as its core growth theme. Rackspace Technology, Inc. (RXT) Discusses Enterprise AI Strategy and Strategic Update Transcript
Negative Sentiment: The biggest headwind is the company’s weaker-than-expected FY26 and Q2 guidance, which points to slower near-term revenue and earnings than analysts had modeled. Rackspace Technology Announces Plans to Accelerate Enterprise AI Growth Vector; Provides Preliminary 2Q26 Results and Updates FY26 Outlook
Negative Sentiment: The company’s planned stock offering and the related investigation into its guidance cut are adding investor uncertainty and likely contributing to selling pressure. Rackspace Technology Investigation Notice: SueWallSt Notifies Investors of a Pending Investigation Into Rackspace Technology (RXT)

Hedge Funds Weigh In On Rackspace Technology

A number of institutional investors have recently made changes to their positions in RXT. Two Sigma Investments LP grew its position in shares of Rackspace Technology by 368.4% during the third quarter. Two Sigma Investments LP now owns 673,689 shares of the company’s stock worth $950,000 after buying an additional 529,862 shares in the last quarter. Janus Henderson Group PLC grew its holdings in Rackspace Technology by 70.7% during 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 in the last quarter. Vanguard Group Inc. increased its position in shares of Rackspace Technology by 6.1% in the 3rd quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company’s stock worth $8,867,000 after purchasing an additional 359,087 shares during the last quarter. Geode Capital Management LLC lifted its position in shares of Rackspace Technology by 17.9% during the second quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock worth $2,643,000 after purchasing an additional 313,636 shares during the last quarter. Finally, JPMorgan Chase & Co. grew its stake in Rackspace Technology by 25.5% in the second quarter. JPMorgan Chase & Co. now owns 1,437,879 shares of the company’s stock worth $1,840,000 after purchasing an additional 292,249 shares in the last quarter. 82.48% of the stock is owned by institutional investors and hedge funds.

About Rackspace Technology

(Get Free Report)

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.