Rackspace Technology Inc RXT

Information TechnologySoftware & IT ServicesUnited States of America

Last close 2.62 USD on Nov 1, 2026, +169.9% year to date

Quant rating

Quant rating C Rank 171 of 389 in Information Technology

Growth B 118 of 389
Valuation A 41 of 389
Quality C 252 of 389
Revisions C 187 of 389
Momentum C 193 of 389

Wall Street consensus Hold (3.00)Average target 4.77 USD +81.9%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 668M
Enterprise value: 3.7B
52-week range: 0.39 – 8.60
3-year range: 0.39 – 8.60
Dividend yield: –
Beta (5 years): 3.30
Shares outstanding: 255M
Next earnings: Nov 9, 2026

About the company

Rackspace Technology, Inc. is an end-to-end hybrid, hybrid cloud, and artificial intelligence (AI) solutions company. The Company designs, builds, and operates its customers’ cloud environments across all technology platforms, irrespective of technology stack or deployment model. The Company operates through two segments. Its Public Cloud segment is a service-centric, capital-light model providing value-added cloud solutions through managed services, elastic engineering and professional services offerings for customer environments hosted on the Amazon Web Services (AWS), Microsoft Azure and Google Cloud public cloud platforms. Its Private Cloud segment is a technology-forward, capital-intensive model providing managed service offerings for customer environments hosted in one of its data centers as well as in those owned by customers or by third parties. Private Cloud product portfolio includes Programmatic Infrastructure, Cloud Operating Systems, Platform-as-a-Service, and others.

Growth and profitability

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	2,686	2,737	2,957	3,122	3,010	–
Revenue growth	−1.9%	−7.4%	−5.3%	3.7%	11.2%	−0.2%
EPS (basic, normalized)	−0.18	−0.27	−0.15	0.54	0.97	–
EPS growth	–	–	–	−44.3%	–	–
Gross margin	18.9%	19.5%	21.3%	27.4%	31.1%	23.6%
Net margin	−8.4%	−31.4%	−28.3%	−25.8%	−7.3%	−20.2%
ROE	–	–	−352.8%	−82.3%	−16.1%	−150.4%

Balance sheet, last quarter
Cash & short-term investments (mil)	111
Current ratio	0.76x
Long-term debt (mil)	3,096
Net debt (mil)	3,082
Total equity (mil)	−1,281
Net debt / equity	−2.41x
Net debt / EBITDA	11.18x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	2,686	−1.9%	1.4x	276	+10.5%	13.6x	−0.18	+33.3%	−14.6x
2026	2,503	−6.8%	1.5x	291	+5.4%	12.9x	−0.27	−50.0%	−9.7x
2027	2,623	+4.8%	1.4x	410	+41.1%	9.1x	0.14	+150.6%	19.2x
2028	2,926	+11.5%	1.3x	486	+18.6%	7.7x	0.48	+254.9%	5.4x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	2,503	0.0%	+0.2%	−5.2%	−0.27	0.0%	−47.3%	−200.0%
2027	2,623	0.0%	+0.5%	−2.0%	0.14	0.0%	−6.8%	+127.8%
2028	2,926	0.0%	+3.4%	+2.5%	0.48	0.0%	+5.4%	+94.0%

Earnings surprises EPS beat in 2 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	691	685	676	686	665	666	671	683	678	670
Sales mean (mil)	684	674	675	675	658	659	667	672	661	646
Surprise	+1.0%	+1.7%	+0.1%	+1.6%	+1.1%	+1.0%	+0.7%	+1.6%	+2.6%	+3.7%
EPS reported	−0.11	−0.08	−0.05	−0.02	−0.06	−0.06	−0.05	−0.01	−0.06	−0.08
EPS mean	−0.13	−0.11	−0.07	−0.04	−0.08	−0.05	−0.05	−0.03	−0.04	−0.09
Surprise	+17.0%	+24.8%	+32.0%	+48.5%	+25.9%	−13.2%	0.0%	+66.7%	−71.4%	+11.1%

Peer comparison Software & IT Services

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
RXT Rackspace Technology Inc	668M	11.18x	−8.4%	−0.51x	−9.7x	19.2x	12.9x	9.1x
SHOP Shopify Inc.	202.6B	−2.48x	10.7%	16.01x	83.1x	64.3x	70.8x	53.4x
ACN Accenture PLC	152.6B	−0.07x	11.3%	4.87x	17.6x	16.2x	10.1x	9.6x
SNOW Snowflake Inc.	108.0B	−0.10x	−28.4%	50.18x	139.4x	101.7x	97.1x	70.0x
NET Cloudflare, Inc.	100.0B	−1.86x	−4.7%	61.67x	219.1x	162.9x	140.5x	98.2x
TWLO Twilio Inc.	31.5B	−1.88x	0.7%	3.43x	33.7x	30.0x	23.1x	20.0x
Mean		0.80x	−3.2%	22.61x	80.5x	65.7x	59.1x	43.4x
Median		−0.98x	−2.0%	10.44x	58.4x	47.2x	46.9x	36.7x

Technical analysis

1M−30.9%
3M−31.2%
1Y+59.8%
3Y+125.9%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Rackspace Technology Inc, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	2,686	2,737	2,957	3,122	3,010	2,707
Cost of revenue	2,179	2,204	2,328	2,265	2,073	1,723
Gross profit	506	533	629	857	937	984
Selling, general & administrative expenses	568	662	724	831	878	960
Research & development	39.1	45.4	43.7	24.5	28.3	–
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	0	588	490	681	70.0	71.5
Other operating expenses	0	0	0	0	0	0
Operating income	−101	−762	−628	−679	−40.0	−46.8
Net interest income (expense)	−83.4	−99.9	−217	−219	−208	−268
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	−17.7	−19.7	−9.0	0	−1.0	2.5
Net income before taxes	−202	−882	−854	−898	−249	−312
Provision for taxes	24.0	−23.3	−16.6	−92.9	−30.8	−66.2
Minority interest	–	–	–	–	–	–
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	−226	−858	−838	−805	−218	−246
Extraordinary items	–	–	–	–	–	–
Net income	−226	−858	−838	−805	−218	−246
EBIT, normalized	−65.9	−110	−50.3	112	217	130
EBITDA, normalized	232	185	319	499	642	596
Basic EPS, normalized	−0.18	−0.27	−0.15	0.54	0.97	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Rackspace Technology Inc, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	106	144	197	228	273	105
Receivables	270	305	350	638	570	495
Total inventory	–	–	–	–	–	–
Prepaid expenses	84.4	84.9	87.4	97.3	110	124
Other current assets	57.3	84.9	104	109	37.2	34.8
Total current assets	518	619	738	1,073	990	758
Property, plant & equipment	741	736	735	766	988	1,056
Goodwill	740	736	1,452	2,155	2,707	2,761
Intangibles	698	845	1,019	1,236	1,466	1,646
Long-term investments	–	–	–	–	–	–
Note receivable	3.5	6.4	8.6	10.4	13.1	13.9
Other long-term assets	99.2	113	143	216	164	142
Total assets	2,800	3,054	4,096	5,457	6,329	6,378
Liabilities
Accounts payable	–	–	–	–	–	–
Payable/accrued	414	390	433	447	370	285
Accrued expenses	146	160	159	192	192	199
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	89.3	98.7	92.8	101	136	133
Other current liabilities	118	118	115	116	140	125
Total current liabilities	767	767	800	856	837	742
Long-term debt	3,056	3,089	3,200	3,654	3,719	3,752
Minority interest	–	–	–	–	–	–
Other liabilities	197	203	251	317	445	500
Total liabilities	4,019	4,058	4,251	4,827	5,001	4,994
Shareholders' equity
Preferred stock	0	0	0	0	0	0
Common stock	2.5	2.3	2.2	2.2	2.1	2.0
Additional paid-in capital	2,710	2,683	2,638	2,573	2,500	2,364
Retained earnings (accumulated deficit)	−3,908	−3,682	−2,824	−1,986	−1,182	−963
Treasury stock	−31.0	−31.0	−31.0	−31.0	–	–
Other equity	7.5	24.1	60.3	71.4	6.9	−18.6
Total equity	−1,220	−1,004	−154	630	1,327	1,384
Total liabilities & shareholders' equity	2,800	3,054	4,096	5,457	6,329	6,378

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Rackspace Technology Inc, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	−226	−858	−838	−805	−218	−246
Depreciation, depletion & amortization	298	295	370	388	425	466
Deferred taxes	23.7	−35.0	−41.9	−109	−41.5	−73.6
Non-cash items	119	706	659	852	238	256
Changes in working capital	−63.9	−68.7	226	−79.7	−32.1	−286
Cash from operations	151	39.9	375	247	371	117
Investing activities
Capital expenditures	−60.8	−111	−96.9	−80.4	−108	−116
Other investing cash flows	2.4	24.5	0.9	−17.5	39.4	−11.9
Cash from investing	−58.4	−86.6	−96.0	−97.9	−69.0	−128
Financing activities
Financing cash flow items	−19.4	−43.7	−19.8	−20.5	−47.4	−10.9
Cash dividends paid	–	–	–	–	–	–
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−115	40.7	−293	−166	−84.8	40.8
Cash from financing	−135	−3.0	−313	−187	−132	29.9
Foreign exchange effects	2.6	−3.0	2.2	−5.8	−2.3	2.8
Net change in cash	−39.0	−52.7	−31.7	−44.0	167	21.0
Free cash flow	90.6	−71.2	278	166	262	0.2

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.