Rackspace Technology, Inc. (RXT) Stock

Rackspace Technology, Inc. (RXT) is a Technology stock trading at $3.23 (as of 2026-08-20), with a market capitalization of $823.24M. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

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.

Understand Rackspace Technology, Inc.: how it makes money

Rackspace Technology provides multi cloud technology services, including managed public and private cloud services plus professional services, and also offers managed applications and managed security services, and it generates revenue from providing these managed cloud and related services to customers.

Rackspace's near term profitability is most directly tied to the operating profit mix across its Multicloud managed cloud services, with Private Cloud segment operating profit (0.09 USD_B) materially higher than Public Cloud segment operating profit (0.02 USD_B) based on the provided figures.

Business quality (Weak): The provided facts clearly define the two reportable segments and include public versus private cloud operating profit, but there is not a clean revenue split for both reportable segments, so segment-level conclusions are limited.

Bull case

  • Private Cloud operating profit is higher than Public Cloud operating profit: In the provided figures, Private Cloud Segment Operating Profit is 0.09 USD_B versus Public Cloud Segment Operating Profit of 0.02 USD_B.
  • Customer momentum indicators and deal activity are tracked: New Customer Wins (Public and Private Cloud Combined) are listed at 200, and Services Attached Deal Count on Top Deals is listed at 22.
  • AI-related commercial funnel is quantified: Foundry for Artificial Intelligence by Rackspace Wins are listed at 80, with Pipeline Opportunities listed at 235, and Financial and Artificial Intelligence Transformation Opportunities are listed at 200 with 20% in advanced stages.

Bear case

  • Profitability remains negative in the latest quarter: Operating margin is listed as -2.6% for the period ending 2026-03-31.
  • Public Cloud segment operating profit is small relative to Private Cloud: Provided figures show Public Cloud Segment Operating Profit at 0.02 USD_B, compared with Private Cloud Segment Operating Profit at 0.09 USD_B.
  • Some revenue headwinds may exist from smaller legacy exposure: Legacy OpenStack Revenue is listed at 0.03 USD_B (both standalone and within Private Cloud), indicating a smaller legacy contribution versus core revenue.
Valuation — source: SEC EDGAR (first-party)
Price$3.23
Market Cap$823.24M
EV / EBITDA51.1
Price / Sales0.30
FCF Yield5.0%
DCF Value (model)$5.86
DCF Upside vs Price81.4%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$2.69B
Net Margin-8.4%
Revenue Growth (YoY)0.6%
EPS Growth (YoY)17.4%
FCF Growth (YoY)289.5%
Financial Health — source: SEC EDGAR
Altman Z-Score-1.10 (distress)
Piotroski F-Score4/9 (moderate)
Valuation vs Sector & Industry
Sector P/E (Technology)33.9
Industry P/E (Business Services)30.0
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderApollo Management Holdings, L.P. ($127.02M)
Institutional Holders Tracked10
Congressional Trades (recent)4
Company
SectorTechnology
IndustryBusiness Services
CEOGajen Kandiah
Employees5,100
CountryUS
IPO Date2020-08-05

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RXT earnings history · RXT institutional & insider holders · RXT KPIs & operating metrics · RXT financials · RXT investor presentations & press releases · RXT SEC filings · RXT peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.