Rackspace Technology (NASDAQ:RXT) Announces Quarterly Earnings Results

Rackspace Technology (NASDAQ:RXT) released its earnings results on Monday. The company reported ($0.08) EPS for the quarter, beating the consensus estimate of ($0.09) by $0.01, FiscalAI reports. The firm had revenue of $670.10 million during the quarter, compared to the consensus estimate of $646.00 million.

Rackspace Technology Price Performance

RXT stock traded down $0.17 during mid-day trading on Monday, reaching $4.73. The company had a trading volume of 6,406,654 shares, compared to its average volume of 21,880,053. The company has a market capitalization of $1.20 billion, a price-to-earnings ratio of -7.75 and a beta of 3.05. Rackspace Technology has a 52 week low of $0.39 and a 52 week high of $8.60. The stock has a 50 day simple moving average of $5.34 and a two-hundred day simple moving average of $3.16.

Trending Headlines about Rackspace Technology

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

• Positive Sentiment: No clearly positive company-specific catalyst was reported in the latest coverage.
• Neutral Sentiment: Rackspace is expected to report quarterly earnings on Tuesday. The results, outlook and commentary on its cloud-services business and enterprise artificial-intelligence strategy could become the next major trading catalyst. Rackspace Technology Expected to Release Quarterly Earnings
• Negative Sentiment: Several investor-rights firms announced that a securities class action has been filed against Rackspace and certain executives. The case covers investors who purchased securities from May 7 through July 8, 2026, and alleges violations of federal securities laws, including material misstatements or omissions related to the company’s enterprise-AI efforts. These are allegations, and no conclusion of wrongdoing has been established. Rackspace Technology Investors Class Action Notice
• Negative Sentiment: The notices repeatedly reference a 33% stock plunge during the proposed class period and urge affected shareholders to seek lead-plaintiff status by September 28, 2026. The litigation adds legal, financial and reputational uncertainty ahead of the earnings release. Kaplan Fox Rackspace Class Action Alert

Insider Activity

In other news, CFO Mark A. Marino sold 48,099 shares of the stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $5.56, for a total value of $267,430.44. Following the completion of the sale, the chief financial officer owned 3,370,431 shares of the company’s stock, valued at approximately $18,739,596.36. This represents a 1.41% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 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 corporate insiders.

Hedge Funds Weigh In On Rackspace Technology

Institutional investors have recently added to or reduced their stakes in the company. Creative Planning raised its position in Rackspace Technology by 114.2% during the second quarter. Creative Planning now owns 25,715 shares of the company’s stock worth $33,000 after acquiring an additional 13,708 shares in the last quarter. Jump Financial LLC acquired a new position in shares of Rackspace Technology during the 4th quarter worth about $34,000. Engineers Gate Manager LP increased its stake in shares of Rackspace Technology by 47.1% during the 2nd quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock worth $45,000 after purchasing an additional 11,141 shares during the last quarter. Steward Partners Investment Advisory LLC raised its holdings in shares of Rackspace Technology by 3,385.4% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 64,828 shares of the company’s stock valued at $63,000 after purchasing an additional 62,968 shares during the period. Finally, XTX Topco Ltd lifted its stake in Rackspace Technology by 62.8% in the 2nd quarter. XTX Topco Ltd now owns 57,682 shares of the company’s stock valued at $74,000 after purchasing an additional 22,243 shares during the last quarter. 82.48% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

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

Rackspace Technology Company Profile

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.