Rackspace Technology, Inc.(RXT)Stock Analysis
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Rank #2,066 of 2,879 stocks
Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
RXT Stock Analysis & AI Quality Score
AI stock analysis and institutional research for Rackspace Technology, Inc. (RXT), a Technology sector company. 13F Pro's AI-powered ranking engine scores RXT at 37.2/100 on a 32-signal composite quality model, placing it at rank #2,066 of 2,879 stocks — the bottom half of the AI-ranked universe. RXT scores in the top quartile across institutional flow (81.2). Areas of concern include revenue growth (20.3) and balance sheet strength (21.4), which score below median versus the broader universe. Shareholder dilution risk is elevated at 44.4/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q1 2026), Rackspace Technology, Inc. reports quarterly revenue of $678.1M, net income of $8.3M, an operating margin of -2.6%. Top institutional holders of RXT by reported 13-F value include Apollo Management Holdings, L.P., BlackRock,, VANGUARD CAPITAL MANAGEMENT, based on the most recent SEC filings. RXT trades on the Nasdaq exchange and files with the SEC under CIK 1810019. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate RXT daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Rackspace Technology, Inc. directly from SEC EDGAR. Rackspace Technology, Inc.'s 13F Pro composite quality score has ranged between 8 and 50 since 2021, currently 37.2 — a declining long-term trajectory across 56 quarterly and live scoring snapshots.
Revenue
Q1 2026
$678.1M
Net Income
Q1 2026
$8.3M
Free Cash Flow
Q1 2026
$-9.4M
Operating Margin
Q1 2026
-2.6%
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
-1.9% YoYNet Income
+73.7% YoYOperating Income
+88.9% YoYEPS (Diluted)
+75.1% YoYTotal Assets
-8.3% YoYTotal Debt
-1.5% YoYOp. Cash Flow
+279.4% YoY| Metric | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|
| Revenue | $2.69B -1.9% | $2.74B -7.4% | $2.96B -5.3% | $3.12B +15.3% | $2.71B +11.0% | $2.44B |
| Net Income | $-225.8M +73.7% | $-858.2M -2.4% | $-837.8M -4.1% | $-804.8M -227.4% | $-245.8M -140.3% | $-102.3M |
| Operating Income | $-100.7M +88.9% | $-909.1M -1.1% | $-899.4M -32.5% | $-679.0M -2849.0% | $24.7M -75.7% | $101.6M |
| EPS (Diluted) | $-0.95 +75.1% | $-3.82 +1.8% | $-3.89 -2.1% | $-3.81 -178.1% | $-1.37 -2549.9% | $-0.05 |
| Total Assets | $2.80B -8.3% | $3.05B -25.4% | $4.10B -24.9% | $5.46B -14.4% | $6.38B +1.7% | $6.27B |
| Total Debt | $2.77B -1.5% | $2.81B -2.5% | $2.89B -13.6% | $3.34B -1.9% | $3.41B -12.7% | $3.90B |
| Operating Cash Flow | $151.4M +279.4% | $39.9M -89.4% | $374.9M +52.0% | $246.7M +111.4% | $116.7M -60.2% | $292.9M |
AI Insight: RXT Financial Trends
Rackspace remains deeply loss-making with negative equity of $1.2B, though operating losses are narrowing and debt is gradually declining.
• Operating loss improved from -$54M in Q2 2024 to -$3M in Q4 2025, the best result in the dataset, before widening to -$18M in Q1 2026.
• Total debt declined steadily from $2,924M in Q2 2024 to $2,735M in Q1 2026, a reduction of $189M over eight quarters.
• Equity has deteriorated continuously from -$756M in Q2 2024 to -$1,217M in Q1 2026, reflecting persistent net losses.
• Revenue has been essentially flat, ranging from $665M to $686M across all eight quarters, with no discernible growth.
⚠ Operating cash flow collapsed to $5M in Q1 2026 from $60M in Q4 2025 — liquidity generation remains highly volatile.
⚠ Negative equity deepening to -$1,217M raises balance-sheet solvency concerns, especially with $2,735M of total debt outstanding.
⚠ Net income turned positive at $8M in Q1 2026 for the first time in the dataset — monitor whether this is a genuine inflection.
AI Insight: RXT Ratio Trends
Rackspace remains unprofitable across all periods, but Q4 2025 and Q1 2026 show the narrowest operating losses since Q2 2024.
• Operating margin improved from -25.7% in Q3 2024 to -0.5% in Q4 2025 and -2.6% in Q1 2026, signaling gradual loss reduction.
• Net profit margin turned positive at 1.2% in Q1 2026, the first positive NPM since Q2 2024's 3.6%.
• ROIC remains negative in every quarter, ranging from -36.8% in Q3 2024 to -0.9% in Q4 2025, indicating persistent capital destruction.
• ROE and D/E are unavailable across all periods, limiting assessment of leverage and shareholder return dynamics.
⚠ Q1 2026 ROIC deteriorated to -4.7% from Q4 2025's -0.9% — capital efficiency is backsliding after its best quarter.
⚠ Q3 2024's severe -25.7% operating margin and -36.8% ROIC suggest one-off charges; recurrence would be deeply damaging.
⚠ Sustained positive NPM in future quarters would confirm whether Q1 2026's 1.2% reading is a genuine inflection or noise.
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Available Research
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Top Institutional Holders of RXT
Apollo Management Holdings, L.P.
$127.0M129,609,000 shBlackRock, Inc.
$7.4M7,528,032 shVANGUARD CAPITAL MANAGEMENT LLC
$4.5M4,617,625 shAQR CAPITAL MANAGEMENT LLC
$4.4M4,537,429 shJANUS HENDERSON GROUP PLC
$2.9M2,937,670 shCANNELL CAPITAL LLC
$2.6M26,748 shVANGUARD PORTFOLIO MANAGEMENT LLC
$2.5M2,537,043 shGEODE CAPITAL MANAGEMENT, LLC
$2.4M2,454,917 shRENAISSANCE TECHNOLOGIES LLC
$2.0M2,041,600 shJANE STREET GROUP, LLC
$2.0M2,017,233 sh
| Fund | Value | Shares |
|---|---|---|
| Apollo Management Holdings, L.P. | $127.0M | 129,609,000 |
| BlackRock, Inc. | $7.4M | 7,528,032 |
| VANGUARD CAPITAL MANAGEMENT LLC | $4.5M | 4,617,625 |
| AQR CAPITAL MANAGEMENT LLC | $4.4M | 4,537,429 |
| JANUS HENDERSON GROUP PLC | $2.9M | 2,937,670 |
| CANNELL CAPITAL LLC | $2.6M | 26,748 |
| VANGUARD PORTFOLIO MANAGEMENT LLC | $2.5M | 2,537,043 |
| GEODE CAPITAL MANAGEMENT, LLC | $2.4M | 2,454,917 |
| RENAISSANCE TECHNOLOGIES LLC | $2.0M | 2,041,600 |
| JANE STREET GROUP, LLC | $2.0M | 2,017,233 |
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13F Pro's AI-powered analysis of Rackspace Technology, Inc. (RXT) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Technology sector (listed on Nasdaq). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for RXT are available on the RXT stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
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