Rackspace Reports Q4 Revenue of $683M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy RXT?
Reports Q4 revenue $683M vs. $686M last year. Gajen Kandiah, Chief Executive Officer, stated, "Q4 capped a year of meaningful progress and marks a clear inflection point for Rackspace. We made the structural decisions that position us to win - a sharpened focus, the right leadership team, anchor partnerships, and a platform engineering model purpose-built for enterprise AI in regulated environments. Our 2026 outlook reflects that transition taking hold. Private Cloud is expected to grow year-over-year for the first time in years, and Public Cloud services continue to expand as we deliberately shift toward higher-value enterprise engagements. Together, they form the foundation on which AI is emerging as a tangible and self-reinforcing growth vector. We do not just advise on the journey. We build it, run it, and stay accountable for outcomes. That is what makes Rackspace different, and that is exactly the partner enterprises need right now."
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Analyst Views on RXT
Wall Street analysts forecast RXT stock price to fall
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 2.220
Low
1.30
Averages
1.48
High
1.75
Current: 2.220
Low
1.30
Averages
1.48
High
1.75
About RXT
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.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Declining Revenue Trend: The company experienced a 0.4% year-over-year revenue decline, with its Private Cloud segment seeing a significant 10% drop, highlighting the need for Rackspace to reassess its business strategy to regain competitive advantage in a tough market.
- Pessimistic Future Outlook: Rackspace expects an adjusted EPS loss of 15 to 20 cents for fiscal 2026, far below the market's expectation of a one-cent profit, and forecasts revenue between $2.6 billion and $2.7 billion, which is lower than the consensus estimate of $2.719 billion, reflecting a lack of confidence in future performance.
- Weak Stock Performance: Despite a 5.39% decline in stock value over the past year, Rackspace's shares are trading 144% above the 20-day SMA and 86.7% above the 100-day SMA; however, the recent death cross indicates caution for long-term investors as the stock may face potential pullbacks.
See More
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- Active Stocks: Rackspace Technology, Inc. (RXT) traded 5,439,330 shares at $2.09, which is 149.26% above its target price of $1.4, suggesting optimistic market expectations for its future performance.
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