The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 77 | — | 20.8x | Top tier | |
Growth | 30 | -0.5% | 6.1% | Bottom tier | |
Quality | 31 | -5.8% | 6.6% | Bottom tier | |
Safety | 22 | 14.4x | 0.7x | Bottom tier | |
Capital Return | 85 | — | 2.02% | Top tier | |
Momentum | 81 | 311.1% | 4.1% | Top tier | |
Sentiment | 30 | 3 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Rackspace Technology, Inc. (RXT) is a leading company in the field of data centers and cloud infrastructure, operating as an orchestrator and operator of enterprise AI systems in regulated environments. The company generates its revenue through two main operating segments: Private Cloud and Public Cloud. It offers integrated technology solutions in collaboration with strategic partners such as Broadcom, Palantir, and AMD to provide a secure infrastructure capable of meeting digital sovereignty and compliance requirements in vital sectors like healthcare and financial services.
During the first quarter of fiscal year 2026, Rackspace recorded total revenue of $678.1 million, achieving a growth of 2% year-over-year driven by the strong performance of the Public Cloud segment. Total gross profit for the quarter reached $119.1 million, and the company succeeded in achieving positive net income of $8.3 million, resulting in earnings per share of $0.03. Revenue was distributed between the Public Cloud segment, which generated $443 million (up 7% year-over-year), and the Private Cloud segment, which recorded $235 million (down 6% year-over-year due to the timing of onboarding major contracts).
In terms of operating margins, the company's non-GAAP gross profit margin was 18.3%, affected by lower fixed cost absorption in Private Cloud. However, operating margins showed a significant improvement thanks to strict discipline in operating expenses; the Private Cloud segment operating margin rose by 30 basis points to reach 24.7%, while the Public Cloud segment operating margin increased by 50 basis points to record 4.7%.
The analyst consensus rating for Rackspace Technology, Inc. (RXT) stock stands at a Hold, with a mean price target of $5.25, a high of $5.5, and a low of $5. Looking at the stock's 52-week trading range of $0.393 to $7.65, the overall valuation reflects market caution regarding the company's high debt levels and its efforts to deleverage before its major debt maturities in mid-2028.
Figures in the text are as of 2026-06-16; the live price is shown at the top of the page.
Rackspace Technology signed a non-binding memorandum of understanding with AMD aimed at deploying 30 megawatts of fully managed AI computing capabilities. This partnership includes integrating AMD Instinct GPU accelerators and AMD EPYC processors with the ROCm software platform to deliver advanced infrastructure for regulated AI. The agreement focuses on four key capabilities, including AI-dedicated cloud and inference engine to serve the healthcare, financial services, and sovereign environments.
Rackspace successfully closed its first joint deal with Palantir in just 41 days for a US-based solar tracking company. Field Deployed Engineers (FDEs) implemented an AI-enhanced workflow on the Palantir Foundry platform directly within the customer's environment. This intervention contributed to reducing the quoting cycle by 94%, prompting the customer to expand the contract to include the EMEA region.
Rackspace ended the first quarter of 2026 with total liquidity of $295 million, including $94 million in cash and the undrawn portion of its revolving credit facility. The company recorded cash flow from operating activities of $5 million, while free cash flow was negative at $9 million. The company utilized its liquidity to repurchase $96 million of debt at a significant discount to reduce interest burdens and improve its capital structure.
Automated analysis for informational purposes only — not investment advice.
Rackspace expanded its relationship with AdventHealth to manage and host more than 400 additional workloads on its private cloud, in addition to managing the Epic EHR system, which is one of the top five medical systems globally. On the sovereign front, the company was selected by BT to be the foundation for the BT Sovereign Cloud infrastructure in the UK, which is fully managed locally. The company also continues to work with the Saudi Data and AI Authority (SDAIA) on advanced national AI projects.
The Public Cloud segment generated revenue of $443 million, recording a growth of 7% year-over-year, with services growing by 10% thanks to the shift towards high-value contracts. In contrast, Private Cloud revenue declined by 6% to reach $235 million due to the timing of major deal activations in the healthcare sector. However, the Private Cloud segment maintained strong operating profitability with a margin of 24.7% thanks to strict expense discipline.