What's Going On With Rackspace Stock Friday?

Rackspace Technology, Inc. (NASDAQ:RXT) shares are down during Friday’s premarket session as the company reported below consensus fiscal 2026 guidance and fourth quarter results on Thursday.

The stock’s decline comes during a mixed market day, with major indices showing a downtrend, particularly impacting technology and related sectors.

Earnings Snapshot

Rackspace Tech reported adjusted EPS loss of one cent per share, which was better than the analyst consensus estimate of loss of three cents.

The company reported sales of $683 million, which beat the analyst consensus estimate of $672.373 million.

Revenue declined 0.4% on a reported basis and 1% on a constant currency basis as Private Cloud segment saw revenues decline of 10% on a reported basis and 11% on a constant currency basis.

The company expects fiscal 2026 adjusted EPS of a loss of 20 cents to 15 cents, compared with consensus estimates of 1 cent profit. It forecasts revenue of $2.6 billion to $2.7 billion, versus the Street view of $2.719 billion.

RXT Stock: 144% Above 20-Day SMA Despite Death Cross

Over the past 12 months, Rackspace Technology has seen a decline of 5.39% in its stock value. Currently, the stock is trading significantly above its key moving averages, which typically signals bullish sentiment in the short term. For instance, it stands 144% above the 20-day SMA and 86.7% above the 100-day SMA. However, the presence of a death cross in March, where the 50-day SMA crossed below the 200-day SMA, suggests caution for long-term investors.

The technical indicators present a mixed view. The RSI is currently at 77.42, indicating that the stock is in the overbought territory, which could precede a pullback. Conversely, the MACD shows a bullish signal, with the MACD line at 24 cents above the signal line, suggesting that upward momentum might continue in the near term.

RXT Earnings: Analysts Hold with $4.11 Target

• EPS Estimate: Loss of 4 cents (Up from Loss of 6 cents)
• Revenue Estimate: $672.56 million (Up from $665.40 million)

Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $4.11. Recent analyst moves include:

• RBC Capital: Sector Perform (Lowers Target to $1.75) (Nov. 10, 2025)

RXT Underperforms Tech Sector Peers

Rackspace Technology has seen its shares decline by 5.39% over the past year, marking a noticeable underperformance when compared to its peers in the tech services field. This deviation highlights potential challenges and areas where Rackspace Technology may need to pivot or improve to regain its competitive edge.

Rackspace Technology’s year-over-year performance significantly lags behind the peer group average, which has seen an increase of 7.92%. This 13.32 percentage point gap underscores the company’s struggles in a sector that, overall, has been experiencing positive growth. This divergence indicates that Rackspace Technology faces unique challenges or is possibly lagging in areas such as innovation, market expansion, or customer acquisition.

RXT Price Action: Rackspace Technology shares were down 6.14% at $2.14 during premarket trading on Friday, according to Benzinga Pro data.

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