
RXT Stock Forecast & Price Target
RXT Analyst Ratings
Bulls say
Rackspace Technology Inc. reported significant growth in Private Cloud bookings, achieving a 24% quarter-over-quarter increase and a 42% year-over-year increase, indicating strong demand across various industries including healthcare, BFSI, and telecom. Management has indicated an expectation of improved free cash flow and higher adjusted EBITDA in the second half of the year, following a challenging first half impacted by one-time vendor prepayments. Furthermore, projections for FY2026 suggest potential revenue growth and margin expansion, reflecting a positive outlook for the company's financial performance.
Bears say
Rackspace Technology is facing a challenging financial outlook, with management forecasting a total revenue decline of approximately 1% year-over-year, a notable decrease from the previously estimated decline of 2.4%. Specifically, the Public Cloud segment is expected to decrease by around 0.3% year-over-year, while the Private Cloud segment is anticipated to decline by 3.0%. Additionally, there are concerns regarding future performance, with projections indicating a potential reduction in revenue growth by 150 basis points and a decrease of 50 basis points in operating margin for FY2026 compared to baseline assumptions.
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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