Reading the tape
NASDAQ: RXT
Rackspace Technology, Inc.
Technology · Software - Infrastructure
Market Cap
$1.36B
52w High
$6.00
52w Low
$0.39
P/E
-9.28
Volume
154.11M
Outstanding Shares
246.91M
Price vs Fundamentals
Why The Stock Is Moving
Optimism is getting priced inHigh confidence
1Y Price: 281.25%Revenue (TTM): -0.49%FCF (TTM): 49.32%P/FCF: 84th pct
What changed
The stock rose 281.25% over the last year. Revenue declined 0.49% over the trailing twelve months. Operating margin moved from -10.87% to -2.97%. Free cash flow grew 49.32% over the trailing twelve months.
What the market seems to be pricing
The stock is trading toward the richer end of its historical P/FCF range (84th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.
What would invalidate this read
Operating margin is at -2.97% — continued expansion would be needed to justify the premium. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.
Company profile
Rackspace Technology, Inc. operates as a multi cloud technology services company worldwide.
CEOGajen Kandiah
SectorTechnology
IndustrySoftware - Infrastructure
Employees5,100
IPO dateAug 5, 2020
Valuation
Forward P/E—
EV/EBITDA15.72
Enterprise value$3.41B
Stock splits
Jul 20, 2020↓ Reverse
Every 12 shares became 1
Profitability & growth
Revenue growth1.91%
Gross margin18.48%▼3.24%vs FY2024
Operating margin-2.97%▲88.71%vs FY2024
ROE18.52%▼78.33%vs FY2024
Analyst consensus
RatingHold
Target price$3.33▼39.44%
2
Buy
8
Hold
3
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Aug 6, 2026
Q3 FY26 · EPS est -$0.11 · Revenue est $661.03M
View