RXT

Company Overview — What Does Rackspace Technology, Inc. Do?

Rackspace Technology, Inc. operates as a multi cloud technology services company worldwide. It operates through Multicloud Services and Apps & Cross Platform segments. The company's Multicloud Services segment provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; and professional services related to designing and building multi cloud solutions and cloud-native applications. Its Apps & Cross Platform segment includes managed applications; managed security services in the areas of security threat assessment and prevention, threat detection and response, rapid remediation, governance, and risk and compliance assistance across multiple cloud platforms, as well as privacy and data protection services, including detailed access restrictions and reporting; data services; and professional services related to designing and implementing application, security, and data services. Rackspace Technology, Inc. was founded in 1998 and is headquartered in San Antonio, Texas. Rackspace Technology, Inc. (RXT) is classified as a micro-cap stock in the Technology sector, specifically within the Computer Software industry. The company is led by CEO Amar M. Maletira and employs approximately 6,600 people. With a market capitalization of $240M, RXT is one of the notable companies in the Technology sector.

Rackspace Technology, Inc. (RXT) Stock Rating — Avoid (April 2026)

As of April 2026, Rackspace Technology, Inc. receives a Avoid rating with a composite score of 33.0/100 and 1 out of 5 stars from the Blank Capital Research quantitative model.RXT ranks #4,049 out of 4,446 stocks in our coverage universe. Within the Technology sector, Rackspace Technology, Inc. ranks #508 of 584 stocks, placing it in the lower half of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

RXT Stock Price and 52-Week Range

Rackspace Technology, Inc. (RXT) currently trades at $1.33. The stock gained $0.45 (50.5%) in the most recent trading session. The 52-week high for RXT is $2.74, which means the stock is currently trading -51.5% from its annual peak. The 52-week low is $0.39, putting the stock 238.3% above its annual trough. Recent trading volume was 20.7M shares, indicating strong institutional interest and high liquidity.

Is RXT Overvalued or Undervalued? — Valuation Analysis

Rackspace Technology, Inc. (RXT) carries a value factor score of 26/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The price-to-sales ratio is 0.08x, compared to 1.06x for the average Technology stock. On an enterprise value basis, RXT trades at 1.54x EV/EBITDA, versus 12.79x for the sector.

At current multiples, Rackspace Technology, Inc. trades at a premium to most Technology peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.

Rackspace Technology, Inc. Profitability — ROE, Margins, and Quality Score

Rackspace Technology, Inc. (RXT) earns a quality factor score of 30/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 13.0%, compared to the Technology sector average of -1.4%, which is within a healthy range. Return on assets (ROA) comes in at -13.6% versus the sector average of -1.0%.

On a margin basis, Rackspace Technology, Inc. reports gross margins of 19.5%, compared to 50.9% for the sector. The operating margin is -10.1% (sector: -0.5%). Net profit margin stands at -14.1%, versus -1.5% for the average Technology stock. Revenue growth is running at -2.0% on a trailing basis, compared to 14.2% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.

RXT Debt, Balance Sheet, and Financial Health

Rackspace Technology, Inc. has a debt-to-equity ratio of -234.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 0.68x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $2.75B. Cash and equivalents stand at $100M.

RXT has a beta of 1.62, meaning it is more volatile than the broader market — a $10,000 investment in RXT would be expected to move 62.5% more than the S&P 500 on any given day. The stability factor score for Rackspace Technology, Inc. is 13/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.

Rackspace Technology, Inc. Revenue and Earnings History — Quarterly Trend

In TTM 2026, Rackspace Technology, Inc. reported revenue of $2.68B and earnings per share (EPS) of $-0.95. Net income for the quarter was $-380M. Gross margin was 19.5%. Operating income came in at $-271M.

In FY 2025, Rackspace Technology, Inc. reported revenue of $2.69B and earnings per share (EPS) of $-0.95. Net income for the quarter was $-226M. Gross margin was 18.9%. Revenue grew -1.9% year-over-year compared to FY 2024. Operating income came in at $-101M.

In Q3 2025, Rackspace Technology, Inc. reported revenue of $671M and earnings per share (EPS) of $-0.28. Net income for the quarter was $-67M. Gross margin was 19.4%. Revenue grew -0.7% year-over-year compared to Q3 2024. Operating income came in at $-34M.

In Q2 2025, Rackspace Technology, Inc. reported revenue of $666M and earnings per share (EPS) of $-0.23. Net income for the quarter was $-55M. Gross margin was 19.4%. Revenue grew -2.7% year-over-year compared to Q2 2024. Operating income came in at $-25M.

Over the past 8 quarters, Rackspace Technology, Inc. has demonstrated a growth trajectory, with revenue expanding from $685M to $2.68B. Investors analyzing RXT stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

RXT Dividend Yield and Income Analysis

Rackspace Technology, Inc. (RXT) does not currently pay a dividend. This is common among smaller companies in the Computer Software industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.

RXT Momentum and Technical Analysis Profile

Rackspace Technology, Inc. (RXT) has a momentum factor score of 43/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 46/100 reflects moderate short selling activity.

RXT vs Competitors — Technology Sector Ranking and Peer Comparison

Within the Technology sector, Rackspace Technology, Inc. (RXT) ranks #508 out of 584 stocks based on the Blank Capital composite score. This places RXT in the lower half of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.

Comparing RXT against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full RXT vs S&P 500 (SPY) comparison to assess how Rackspace Technology, Inc. stacks up against the broader market across all factor dimensions.

RXT Next Earnings Date

No upcoming earnings date has been announced for Rackspace Technology, Inc. (RXT) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy RXT? — Investment Thesis Summary

The quantitative profile for Rackspace Technology, Inc. suggests caution. The quality score of 30/100 flags below-average profitability. The value score of 26/100 indicates premium valuation. High volatility (stability score 13/100) increases portfolio risk.

In summary, Rackspace Technology, Inc. (RXT) earns a Avoid rating with a composite score of 33.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on RXT stock.

Related Resources for RXT Investors

Explore more research and tools: RXT vs S&P 500 comparison, top Technology stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare RXT head-to-head with peers: RXT vs IHS, RXT vs VRSN, RXT vs ESE.