
RXT Stock Forecast & Price Target
RXT Analyst Ratings
Bulls say
Rackspace Technology Inc. has demonstrated significant growth in its Private Cloud segment, with bookings increasing 24% quarter-over-quarter and 42% year-over-year, reflecting strong demand across various industries such as healthcare, banking, financial services, and telecom. The company anticipates improved free cash flow in the second half of the year due to higher adjusted EBITDA and better working capital management, following a dip caused by one-time vendor prepayments in the first half. Additionally, there is potential for further revenue growth and margin expansion in fiscal year 2026, enhancing the overall positive outlook for the company's financial performance.
Bears say
Rackspace Technology Inc. is facing challenges reflected in management's guidance, projecting a total revenue decline of approximately 1% year-over-year, which is a more pessimistic outlook compared to the previously estimated 2.4% decline. The company expects its Public Cloud segment to decline by about 0.3% and its Private Cloud segment to experience a more significant decline of 3.0% year-over-year. Furthermore, an anticipated reduction in revenue growth by 150 basis points and a decrease of 50 basis points in operating margin for FY2026 further underscores the financial headwinds facing Rackspace Technology.
This aggregate rating is based on analysts' research of Rackspace Technology, Inc. and is not a guaranteed prediction by Public.com or investment advice.
RXT Analyst Forecast & Price Prediction
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