RXT Rackspace Technology, Inc.

BEARISH Impact: 6/10 8-K
Horizon days Filed May 7, 2026 Processed 1mo ago SEC 0001810019-26-000041
8-K Item 2.02: Earnings release
Latest settled — T+20d ⚠ clustered
RXT ▲ +48.01% at T+20d
SHORT call ✗ call lost -48.01% · α vs SPY -44.88% · entry $3.52 → $5.21
Next anchor: T+60d in 8w
Last close $4.51 (close Jun 8) · -28.13% from $3.52 entry (call sign-flipped)
Entry anchored
May 7, 08:09 AM ET
via Databento tick
T+1d
+55.97%
call -55.97% · α -55.14%
$5.49
settled 5w ago
T+5d
+63.92%
call -63.92% · α -62.42%
$5.77
settled 27d ago
T+20d
+48.01%
call -48.01% · α -44.88%
$5.21
settled 5d ago
T+60d
call — · α —
in 8w

Price Chart

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Executive Summary

Rackspace Technology reported Q1 2026 revenue of $678M (+2% YoY) and GAAP net income of $8M ($0.03 EPS), swinging from a $72M loss last year. However, Non-GAAP loss per share was $(0.06), unchanged YoY, and operating cash flow slumped to $5M from $12.6M. FY2026 guidance implies continued Non-GAAP losses, reinforcing a bearish outlook.

Key Financial Metrics

Guidance
$2,600 - $2,700 million
initiated
Gross Margin
17.6%

Actionable Insight

Monitor cash burn trajectory and private cloud stabilization; the AMD MOU is early-stage and non-binding, offering no near-term revenue. Expect continued pressure on stock until core profitability improves.

Key Facts

  • Revenue of $678M, up 2% YoY ($665M)
  • GAAP diluted EPS $0.03 vs $(0.31) last year, driven by $55.8M gain on debt extinguishment
  • Non-GAAP loss per share $(0.06), same as prior year
  • Operating cash flow $5M, down from $12.6M in Q1 2025
  • Private Cloud revenue declined 6% YoY to $235M
  • FY2026 guidance: Non-GAAP loss per share $(0.15)-$(0.20)
  • Announced non-binding MOU with AMD for governed enterprise AI infrastructure
  • Total debt $2.7B, cash $94M

Financial Impact

Non-GAAP losses persist; cash flow halved; guidance implies continued negative earnings.

revenuenon-gaap epsoperating cash flowprivate cloud revenue

Risk Factors

  • Declining Private Cloud revenue (down 6% YoY)
  • Negative Non-GAAP earnings and low operating cash flow
  • High leverage ($2.7B debt) with thin liquidity ($94M cash)
  • Restructuring and transformation costs may persist

Market Snapshot

Exchange
Nasdaq
Sector
Services-Computer Programming, Data Processing, Etc.
Analyst Consensus
0% bullish (10 analysts)

Documents Analyzed

This report is based on 4 SEC documents filed with EDGAR.

DocumentAccession Number
8-K Filing (Primary)0001810019-26-000041
Document: 0001810019-26-000041-index.html0001810019-26-000041
Document: 0001810019-26-000041.txt0001810019-26-000041
8-K Data (Synthetic)0001810019-26-000041
11 reports for RXT
Performance horizon
Filters
Rows
Reports for RXT — sortable, filterable
Type Now
Jun 5, 2026
5d ago
Insider Cluster
NEUTRAL ★ 3/10
$5.38 awaiting T+20awaiting T+20$4.51 (−16.17%)
Jun 5, 2026
5d ago
144
NEUTRAL ★ 3/10
$5.38 awaiting T+20awaiting T+20$4.51 (−16.17%)
May 7, 2026
4w ago
8-K
BEARISH ★ 6/10
$3.52 $5.21▼ −48.01%▼ −44.88%$4.51 (−28.13%)
May 7, 2026
4w ago
Press Release
MIXED ★ 5/10
$3.52 $5.21▲ +48.01%▲ +44.88%$4.51 (+28.13%)
Apr 16, 2026
7w ago
Press Release
NEUTRAL ★ 3/10
$1.47 $7.29▲ +395.92%▲ +390.55%$4.51 (+206.80%)
Apr 3, 2026
9w ago
8-K
NEUTRAL ★ 3/10
$0.9480 $2.01▲ +112.03%▲ +103.04%$4.51 (+375.74%)
Mar 18, 2026
11w ago
Press Release
NEUTRAL ★ 4/10
$1.85 $1.33▼ −28.11%▼ −34.15%$4.51 (+143.78%)
Mar 18, 2026
12w ago
Insider Cluster
NEUTRAL ★ 4/10
$1.85 $1.33▼ −28.11%▼ −34.15%$4.51 (+143.78%)
Mar 10, 2026
13w ago
Press Release
NEUTRAL ★ 4/10
$1.95 $0.9720▼ −50.15%▼ −50.00%$4.51 (+131.28%)
Mar 2, 2026
14w ago
Insider Cluster
NEUTRAL ★ 3/10
$2.22 $1.00▼ −54.95%▼ −47.02%$4.51 (+103.15%)
Showing 10 of 11

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