Rackspace Technology Inc (RXT) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Rackspace Technology Inc stock $2.85, price $2.53, upside +12.6%, quality 37 out of 100. Rating: undervalued. Calculated from audited financials with 3 of our 26 valuation models and 37 quality factors, updated daily.
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Rackspace Technology Inc
RXT · USThe stock costs 11% less than our calculation considers fair.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $0.4089 – $17.25 · fair‑value band $1.70 – $8.88 · the $2.53 price screens below the $2.85 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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Company profile
Rackspace Technology, Inc. operates as a hybrid cloud and artificial intelligence solutions company in the United States, the United Kingdom, and internationally. It operates through two segments, Public Cloud and Private Cloud.
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The company offers programmatic infrastructure, including hardware and services for datacenter compute, network, storage, and data protection; cloud operating systems; platform-as-a-service; private cloud solutions; and private cloud services, such as managed, professional, elastic engineering, and security services, as well as an email platform for customers and carriers.
It also provides a cloud platform that offers platform-related services, including cloud strategy and architecture, platform and infrastructure migrations, and modern cloud infrastructure; cloud apps that build and manage applications within a cloud technology stack; and cloud data, which helps accelerate the adoption of modern data solutions enabling business transformation.
In addition, the company offers cloud security that provides security solutions in security threat assessment and prevention; proactive threat detection and response; rapid remediation; governance, risk, and compliance assistance across multiple cloud platforms; and privacy and data protection services, including detailed access restrictions and reporting.
Further, it provides Rackspace AI, a portfolio of AI services and solutions to help organizations scale AI, as well as multi-cloud strategy, data and application modernization, cloud adoption, cloud-native enablement, SaaS lifecycle management, and data management services.
The company serves the financial services, government, healthcare, manufacturing, non-profit, education, SaaS and ISV, consumer goods, oil and gas, and other industries. The company was formerly known as Rackspace Corp. and changed its name to Rackspace Technology, Inc. in June 2020.
Rackspace Technology, Inc. was founded in 1998 and is headquartered in San Antonio, Texas.
Stock analysis
Rackspace Technology Inc (RXT) currently trades at $2.53, while our model-based Fair Value estimate is $2.85, implying the stock looks roughly 11% undervalued today.
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Valuation
How firm this estimate is: it rests on 3 models at a data quality of 96/100, which puts the data coverage at low.
Scenario range: $1.70 (bear) to $8.88 (bull), the price of $2.53 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 37/100 (below-average quality), in the Technology sector.
Weak Growth: Revenue is shrinking: the last year, the last three and the last five years are all negative.
Rackspace Technology Inc reported revenue of $2.7B in FY2025 versus $3.0B in FY2021, a compound −2.8%/yr. Reported net income was −$226M in FY2025.
Key figures
Market cap $691M Small · P/S ratio 0.26 · EPS (TTM) $−0.6500 · Net margin −5.9% · Return on equity −353% · Return on assets (EBIT) −13.3% (5-year average) · Operating margin −2.1% · Revenue (TTM) $2.7B.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 12 out of 100 (low confidence).
What moves the price
The share trades about 66% below its 52-week high and 519% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at −11% fair-value upside, at 13%, RXT screens cheaper than that median.
Fair Value models
All 3 models by family
Quality Score breakdown
It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.
Insider trades
In the last 6 months, 5 officers or directors sold shares worth $3.7M and none bought.
- SaleKellie Teal-GuessChief Human Resources Officer5× since Dec 1, 2025: 220,323 shares, avg. $4.22$930,611Sep 8, 202610b5-1 plan
- SaleGajakarnan Vibushanan KandiahChief Executive Officer, Director2× since Sep 2, 2026: 506,986 shares, avg. $3.21$1.6MSep 4, 202610b5-1 plan
- SaleDharmendra Kumar SinhaEVP, President, Public Cloud6× since Nov 28, 2025: 539,090 shares, avg. $2.15$1.2MSep 2, 202610b5-1 plan
- SaleMark A. MarinoChief Financial Officer5× since Feb 23, 2026: 368,396 shares, avg. $2.34$863,490Sep 2, 202610b5-1 plan
- SaleAnthony ScottDirector48,780 shares at $4.25$207,315Aug 14, 2026
Plus 6 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Source: SEC Form 4, as of Nov 6, 2026. All filings at the SEC ↗
Revenue & earnings trend
Growth Forecast
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Compare Rackspace Technology Inc with another stock
Price, fair value, quality and upside side by side.
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Infrastructure · 345 stocks
Valuation Multiplesvs Software - Infrastructure median · lower = cheaper
Strength profile in five axes (Snowflake)
PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.
Context: sector, industry, market
- Is the Information Technology sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Net margin by industry
- P/B ratio by industry
- Piotroski F-Score screener with fair value
- Undervalued stocks: US Stocks
- Valuation of the USA market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Software - Infrastructure stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value | Compare |
|---|---|---|---|---|
| Fortinet, Inc FTNT | $118.84 | $134.76 | +13% | vs RXT |
| Microsoft Corporation MSFT | $530.61 | $583.67 | +10% | vs RXT |
| Oracle Corporation ORCL | $116.10 | $111.97 | −4% | vs RXT |
| NetApp, Inc NTAP | $169.19 | $156.80 | −7% | vs RXT |
| Block, Inc XYZ | $85.48 | $76.43 | −11% | vs RXT |
| Synopsys, Inc SNPS | $450.46 | $288.23 | −36% | vs RXT |
| Zscaler, Inc ZS | $197.66 | $101.45 | −49% | vs RXT |
| Palantir Technologies Inc PLTR | $160.38 | $42.20 | −74% | vs RXT |
| CrowdStrike Holdings CRWD | $216.90 | $37.97 | −82% | vs RXT |
| Palo Alto Networks, Inc PANW | $313.84 | $39.54 | −87% | vs RXT |
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Key figures of Rackspace Technology Inc
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