Rackspace Technology

RXT · NASDAQ

$2.71−$0.03 (−1.09%)TodayMarket closed · Oct 20, 4:05 PM ET

Prev close $2.74

RXT analyst rating

HoldConsensus of 3 analysts over the last 12 months. 0% rate it a buy.

Strong buy0
Buy0
Hold3
Underperform0
Sell0

12-month price target · 4 analysts

Average $4.86 (+79.4% upside)

Low: $4.04
Now: $2.71
High: $5.57

Upgrades and downgrades

The latest rating actions, newest first

RXT analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
RBC Capital	Jun 17, 2026	Maintains	Sector Perform	$2.50 → $4.00	50%
RBC Capital	Feb 27, 2026	Maintains	Sector Perform	$1.75 → $2.50	45%
RBC Capital	Nov 10, 2025	Maintains	Sector Perform	$2.00 → $1.75	64%

The case for and against

Updated Feb 2, 2026

Bull case

Rackspace Technology Inc. demonstrates strong growth potential, illustrated by a 24% quarter-over-quarter and 42% year-over-year increase in Private Cloud bookings, supported by significant contract wins across diverse sectors such as healthcare, banking, financial services, and telecom. Additionally, management indicated that Free Cash Flow (FCF) in the first half of the year was affected by large one-time vendor prepayments, with expectations for improvement in the second half alongside higher adjusted EBITDA and better working capital performance. Furthermore, the upside case for the company projects an additional 150 basis points of revenue growth and a 75 basis point margin expansion by fiscal year 2026, indicating a promising financial trajectory.

Bear case

Rackspace Technology Inc. is experiencing a concerning revenue trend, with management guiding a total revenue decline of approximately 1% year-over-year at the midpoint, a reduction from the previous estimate of a 2.4% decline. The company expects a segmented decline in its Public Cloud offerings by roughly 0.3% year-over-year, while the Private Cloud segment anticipates a more significant contraction of about 3.0% year-over-year. Furthermore, projections indicate a potential decline of 150 basis points in revenue growth and a decrease of 50 basis points in operating margin by FY2026, suggesting ongoing challenges that could impact long-term financial stability.

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