Rackspace Technology (NASDAQ:RXT) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

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

Rackspace Technology Stock Performance

Shares of RXT traded down $0.17 during mid-day trading on Monday, reaching $4.73. The company had a trading volume of 6,524,177 shares, compared to its average volume of 21,895,332. The company has a market capitalization of $1.20 billion, a price-to-earnings ratio of -7.75 and a beta of 3.05. The firm has a 50-day moving average price of $5.34 and a 200 day moving average price of $3.16. Rackspace Technology has a 52 week low of $0.39 and a 52 week high of $8.60.

Rackspace Technology News Summary

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

• Positive Sentiment: Rackspace reported a quarterly loss of $0.08 per share, narrowly better than the analyst consensus loss of $0.09. Revenue reached $670.1 million, exceeding estimates of $646.0 million by approximately 3.7%, suggesting better-than-expected operating performance. Rackspace Technology quarterly earnings press release
• Neutral Sentiment: Several law firms publicized the same underlying securities-fraud class action against Rackspace and certain executives. The announcements primarily seek to recruit investors and do not represent separate new lawsuits or a court finding of wrongdoing. Investors who bought shares between May 7 and July 8, 2026, are being notified of a September 28, 2026, deadline to seek lead-plaintiff status. Rosen Rackspace class-action notice
• Negative Sentiment: The litigation alleges that Rackspace made material misstatements or omissions concerning its enterprise AI efforts. The legal uncertainty may weigh on investor sentiment and could expose the company to defense costs, potential damages and reputational risk, although the ultimate merits and financial impact remain unresolved. Rackspace enterprise AI securities lawsuit notice

Insiders Place Their Bets

In other Rackspace Technology news, CFO Mark A. Marino sold 48,099 shares of Rackspace Technology stock in a transaction on 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 transaction, the chief financial officer owned 3,370,431 shares in the company, valued at approximately $18,739,596.36. The trade was a 1.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through 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 company insiders.

Institutional Investors Weigh In On Rackspace Technology

A number of institutional investors have recently modified their holdings of RXT. Wells Fargo & Company MN lifted its stake in shares of Rackspace Technology by 13.4% in the fourth quarter. Wells Fargo & Company MN now owns 244,939 shares of the company’s stock worth $238,000 after buying an additional 28,885 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its position in shares of Rackspace Technology by 46,034.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 279,115 shares of the company’s stock valued at $271,000 after acquiring an additional 278,510 shares in the last quarter. Verition Fund Management LLC purchased a new position in Rackspace Technology in the 3rd quarter worth approximately $151,000. Alliancebernstein L.P. raised its holdings in Rackspace Technology by 4.0% in the 3rd quarter. Alliancebernstein L.P. now owns 290,750 shares of the company’s stock worth $410,000 after acquiring an additional 11,300 shares during the last quarter. Finally, Bridgeway Capital Management LLC bought a new position in Rackspace Technology in the 3rd quarter valued at approximately $367,000. 82.48% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

RXT has been the subject of a number of recent analyst reports. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a report on Tuesday, June 2nd. Royal Bank Of Canada boosted their price target 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 investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and an average target price of $2.70.

About Rackspace Technology

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.