NASDAQ · RXT

Rackspace Technology, Inc.

Technology · Software - Infrastructure

$4.04▲ 6.32% ($0.24)at close

Pre-market$4.02▼ 0.50%8:25 AM ET

52-week

$0.39$8.60

No multiple

What the market price implies · Reverse DCF

Historical revenue grew by -2.81%/yr over the past 4 years.

Selected forecast · Base scenario

0.8%/yr · actual 10-year annualized revenue growth

Year 1 growth: 0%

Market-implied · Base operating assumptions + edited margins

Unavailable · flat 10-year annualized revenue growth

Reverse DCF solves revenue growth itself using Base operating assumptions and your edited margins. Changing forecast growth alone does not change the implied rate. This is a model-implied requirement, not an analyst forecast.

No supported revenue growth rate matches this price with these operating assumptions.

Valuation

Recommended · Revenue & margin DCF

Price used

$4.04

Estimated value / share

Unavailable

Base scenario

USD · TTM ending 2026-06-30

Enterprise value of $2.00B does not cover net debt of $2.68B, so equity value is negative and no fair value per share can be shown. The projected cash flows are positive; the shortfall is in the equity bridge, not the forecast. This engine cannot separate captive-finance or other non-operating borrowings from operating debt.

Year 1 growth 0% · Ending margin 0% · Discount rate 7.36%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 21, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 22, 2026, 12:26 PM UTC · provider

Why this method?

There is not a stable run of positive FCFF to anchor a direct cash-flow CAGR, so the model should start from revenue and margin assumptions instead.

Is FCFF positive and has it been for 3+ consecutive years? Only 1 consecutive positive FCFF years are available.

Price vs Fundamentals

Why The Stock Is Moving

Mixed / unclearLow confidence

1Y Price: 180.56%Revenue (TTM): 0.2%FCF (TTM): -23.51%P/FCF: 80th pct

What changed

The stock rose 180.56% over the last year. Revenue grew 0.2% over the trailing twelve months. Operating margin moved from -9.23% to -2.09%. Free cash flow declined 23.51% over the trailing twelve months.

What the market seems to be pricing

The stock has moved higher with no clear directional signal from operating metrics. The operating data does not yet tell a clear story — the move may reflect sentiment, sector rotation, or macro factors rather than company-specific earnings power.

What would invalidate this read

Operating margin currently stands at -2.09%. A decisive move in revenue — currently up 0.2% — would be the clearest signal to resolve the ambiguity.

Performance

Return analysis

Company profile

Rackspace Technology, Inc. is a global provider specializing in multi-cloud technology services.

CEOGajen Kandiah

SectorTechnology

IndustrySoftware - Infrastructure

Employees5,000

IPO dateAug 5, 2020

https://www.rackspace.com

Market multiples

Forward P/E—

EV/EBITDA11.83

Enterprise value$3.41B

Stock splits

Jul 20, 2020↓ Reverse

Every 12 shares became 1

-92%

Profitability & growth

Revenue growth0%

Gross margin (FY2025)13.39%▼6.1ppvs FY2024

Operating margin (FY2025)-2.55%▲30.7ppvs FY2024

ROEN/A

Analyst consensus

RatingHold

Target price$4.83▲19.55%

Buy

Hold

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

Nov 5, 2026

Q4 FY26 · EPS est -$0.08 · Revenue est $573.95M

View