(RXT) Rackspace Technology - Overview

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US7501021056

Stock:

Total Rating 45
Risk 39
Buy Signal 2.07
Software - Infrastructure -1.7
Application Software +3.0
Market Cap: 409m
Avg Trading Vol: 1.82M USD
ATR: 15.92%
Peers RS (IBD): 96.89
Risk 5d forecast
Volatility 204%
Relative Tail Risk -9.15%
Reward TTM
Sharpe Ratio 0.31
Alpha -85.32
Character TTM
Beta 2.442
Beta Downside 1.537
Drawdowns 3y
Max DD 86.50%
CAGR/Max DD -0.19

EPS (Earnings per Share)

EPS (Earnings per Share) of RXT over the last years for every Quarter: "2020-12": 0.26, "2021-03": 0.23, "2021-06": 0.24, "2021-09": 0.25, "2021-12": 0.25, "2022-03": 0.22, "2022-06": 0.17, "2022-09": 0.1, "2022-12": 0.06, "2023-03": -0.02, "2023-06": -0.06, "2023-09": -0.04, "2023-12": -0.03, "2024-03": -0.11, "2024-06": -0.08, "2024-09": -0.04, "2024-12": -0.02, "2025-03": -0.06, "2025-06": -0.06, "2025-09": -0.05, "2025-12": 0,
EPS CAGR: -24.69%
EPS Trend: -69.1%
Last SUE: 2.76
Qual. Beats: 1

Revenue

Revenue of RXT over the last years for every Quarter: 2020-12: 716.2, 2021-03: 725.9, 2021-06: 743.8, 2021-09: 762.5, 2021-12: 777.3, 2022-03: 775.5, 2022-06: 772.2, 2022-09: 787.6, 2022-12: 787, 2023-03: 758.7, 2023-06: 746.3, 2023-09: 732.4, 2023-12: 719.7, 2024-03: 690.8, 2024-06: 684.9, 2024-09: 675.8, 2024-12: 685.6, 2025-03: 665.4, 2025-06: 666.3, 2025-09: 671.2, 2025-12: null,
Rev. CAGR: -3.84%
Rev. Trend: -95.3%
Last SUE: 0.16
Qual. Beats: 0

Description: RXT Rackspace Technology

Rackspace Technology, Inc. operates as a cloud and artificial intelligence solutions company in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. The company operates in two segments, Public Cloud and Private Cloud. It offers programmatic infrastructure, including hardware and services for compute, network, storage, and data protection services; cloud operating systems; platform-as-a-service; private cloud solutions; and private cloud services, such as managed services, professional services, elastic engineering services, and security services, as well as an email platform for customers and carriers. The company also provides cloud platform, which provides platform-related services comprising cloud strategy and architecture, platform and infrastructure migrations, and modern cloud infrastructure; cloud apps that build and manage applications within a cloud technology stack; cloud security that provides fully-integrated security solutions in security threat assessment and prevention, proactive threat detection and response, rapid remediation, governance, risk and compliance assistance across multiple cloud platforms, and privacy and data protection services, including detailed access restrictions and reporting; and cloud data, which helps accelerate the adoption of modern data solutions enabling business transformation. Rackspace Technology, Inc. was founded in 1998 and is headquartered in San Antonio, Texas.

Piotroski VR‑10 (Strict, 0-10) 4.5

Net Income: -249.1m TTM > 0 and > 6% of Revenue
FCF/TA: 0.02 > 0.02 and ΔFCF/TA 4.56 > 1.0
NWC/Revenue: -8.38% < 20% (prev -4.34%; Δ -4.04% < -1%)
CFO/TA 0.05 > 3% & CFO 146.0m > Net Income -249.1m
Net Debt (3.18b) to EBITDA (164.5m): 19.32 < 3
Current Ratio: 0.71 > 1.5 & < 3
Outstanding Shares: last quarter (240.4m) vs 12m ago 6.18% < -2%
Gross Margin: 19.26% > 18% (prev 0.20%; Δ 1906 % > 0.5%)
Asset Turnover: 89.75% > 50% (prev 88.09%; Δ 1.66% > 0%)
Interest Coverage Ratio: -1.63 > 6 (EBITDA TTM 164.5m / Interest Expense TTM 91.2m)

Altman Z'' -6.30

A: -0.08 (Total Current Assets 540.9m - Total Current Liabilities 766.2m) / Total Assets 2.85b
B: -1.36 (Retained Earnings -3.88b / Total Assets 2.85b)
C: -0.05 (EBIT TTM -149.1m / Avg Total Assets 3.00b)
D: -0.96 (Book Value of Equity -3.86b / Total Liabilities 4.03b)
Altman-Z'' Score: -6.30 = D

Beneish M -3.23

DSRI: 0.91 (Receivables 273.9m/311.8m, Revenue 2.69b/2.77b)
GMI: 1.04 (GM 19.26% / 20.06%)
AQI: 1.01 (AQ_t 0.56 / AQ_t-1 0.55)
SGI: 0.97 (Revenue 2.69b / 2.77b)
TATA: -0.14 (NI -249.1m - CFO 146.0m) / TA 2.85b)
Beneish M-Score: -3.23 (Cap -4..+1) = AA

What is the price of RXT shares?

As of February 27, 2026, the stock is trading at USD 1.35 with a total of 20,427,657 shares traded.
Over the past week, the price has changed by +86.12%, over one month by +199.21%, over three months by +121.36% and over the past year by -12.98%.

Is RXT a buy, sell or hold?

Rackspace Technology has received a consensus analysts rating of 3.00. Therefor, it is recommend to hold RXT.
  • StrongBuy: 0
  • Buy: 1
  • Hold: 4
  • Sell: 1
  • StrongSell: 0

What are the forecasts/targets for the RXT price?

Issuer Target Up/Down from current
Wallstreet Target Price 1.5 9.6%
Analysts Target Price 1.5 9.6%

RXT Fundamental Data Overview February 27, 2026

P/E Forward = 96.1538
P/S = 0.1522
P/B = 0.8119
P/EG = 3.8583
Revenue TTM = 2.69b USD
EBIT TTM = -149.1m USD
EBITDA TTM = 164.5m USD
Long Term Debt = 2.74b USD (from longTermDebt, last quarter)
Short Term Debt = 136.8m USD (from shortTermDebt, last quarter)
Debt = 3.28b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 3.18b USD (from netDebt column, last quarter)
Enterprise Value = 3.59b USD (409.2m + Debt 3.28b - CCE 99.5m)
Interest Coverage Ratio = -1.63 (Ebit TTM -149.1m / Interest Expense TTM 91.2m)
EV/FCF = 51.99x (Enterprise Value 3.59b / FCF TTM 69.0m)
FCF Yield = 1.92% (FCF TTM 69.0m / Enterprise Value 3.59b)
FCF Margin = 2.57% (FCF TTM 69.0m / Revenue TTM 2.69b)
Net Margin = -9.27% (Net Income TTM -249.1m / Revenue TTM 2.69b)
Gross Margin = 19.26% ((Revenue TTM 2.69b - Cost of Revenue TTM 2.17b) / Revenue TTM)
Gross Margin QoQ = 19.35% (prev 19.39%)
Tobins Q-Ratio = 1.26 (Enterprise Value 3.59b / Total Assets 2.85b)
Interest Expense / Debt = 0.65% (Interest Expense 21.2m / Debt 3.28b)
Taxrate = 21.0% (US default 21%)
NOPAT = -117.8m (EBIT -149.1m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 0.71 (Total Current Assets 540.9m / Total Current Liabilities 766.2m)
Debt / Equity = -2.76 (negative equity) (Debt 3.28b / totalStockholderEquity, last quarter -1.19b)
Debt / EBITDA = 19.32 (Net Debt 3.18b / EBITDA 164.5m)
Debt / FCF = 46.06 (Net Debt 3.18b / FCF TTM 69.0m)
Total Stockholder Equity = -1.10b (last 4 quarters mean from totalStockholderEquity)
RoA = -8.32% (Net Income -249.1m / Total Assets 2.85b)
RoE = 22.73% (negative equity) (Net Income TTM -249.1m / Total Stockholder Equity -1.10b)
RoCE = -9.06% (EBIT -149.1m / Capital Employed (Equity -1.10b + L.T.Debt 2.74b))
RoIC = -6.97% (negative operating profit) (NOPAT -117.8m / Invested Capital 1.69b)
WACC = 2.11% (E(409.2m)/V(3.69b) * Re(14.91%) + D(3.28b)/V(3.69b) * Rd(0.65%) * (1-Tc(0.21)))
Discount Rate = 14.91% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 4.63%
[DCF] Terminal Value 80.82% ; FCFF base≈69.0m ; Y1≈45.3m ; Y5≈20.7m
[DCF] Fair Price = N/A (negative equity: EV 658.5m - Net Debt 3.18b = -2.52b; debt exceeds intrinsic value)
EPS Correlation: -69.10 | EPS CAGR: -24.69% | SUE: 2.76 | # QB: 1
Revenue Correlation: -95.28 | Revenue CAGR: -3.84% | SUE: 0.16 | # QB: 0
EPS next Quarter (2026-03-31): EPS=-0.03 | Chg7d=+0.000 | Chg30d=+0.004 | Revisions Net=+0 | Analysts=2
EPS next Year (2026-12-31): EPS=-0.03 | Chg7d=+0.000 | Chg30d=+0.000 | Revisions Net=+0 | Growth EPS=+83.9% | Growth Revenue=+1.6%

Additional Sources for RXT Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Fund Manager Positions: Dataroma | Stockcircle