A securities investigation is examining whether Rackspace Technology misled investors regarding its FY2026 outlook before cutting revenue and earnings guidance on July 9, 2026.
NEW YORK, July 9, 2026 /PRNewswire/ — Rackspace Technology (NASDAQ: RXT) shares fell more than 25% intraday on July 9, 2026 after the Company cut its full-year 2026 revenue guidance by $150 million and its adjusted EBITDA guidance by $20 million. If you purchased RXT shares and suffered a loss, you are encouraged to submit your information today. You may also contact Joseph E. Levi, Esq. via email at jlevi@SueWallSt.com or by telephone at (888) SueWallSt.
On July 8, 2026, RBC Capital raised its price target on Rackspace on the strength of the Company’s Q1 2026 results. One day later, on July 9, 2026, the Company filed an 8-K reducing its FY2026 revenue outlook to a range of $2.45 billion to $2.55 billion, down from a prior range of $2.60 billion to $2.70 billion. Adjusted EBITDA guidance was lowered to $285 million to $295 million from $305 million to $315 million.
The guidance cut was disclosed alongside a $250 million at-the-market equity program and a partnership with Palantir. Trading volume surged to several times the 30-day average and the stock price abruptly declined. The investigation concerns whether Rackspace’s prior FY2026 statements were consistent with the outlook the Company ultimately delivered.
Shareholders who lost money on RXT are encouraged to click here to learn more about the case. You may also contact Joseph E. Levi, Esq. via email at jlevi@SueWallSt.com or by telephone at (888) SueWallSt.
WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States.
Frequently Asked Questions About the RXT Investigation
Q: Which statements are being investigated as potentially misleading? A: The investigation concerns whether Rackspace Technology made materially false or misleading statements regarding its FY2026 revenue and Adjusted EBITDA outlook. When the Company disclosed a $150 million revenue guidance cut and a $20 million EBITDA reduction on July 9, 2026, the stock price declined sharply.
Q: When did Rackspace Technology allegedly mislead investors? A: The investigation concerns statements made before the July 9, 2026 corrective disclosure that allegedly caused investors to purchase securities at inflated prices, including outlooks that preceded the reduced FY2026 guidance.
Q: How much did RXT stock drop? A: Shares were falling more than 25% by midday following the company’s disclosures. Investors who purchased shares at allegedly inflated prices and suffered losses may be eligible to seek recovery.
Q: What if I already sold my RXT shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought RXT and sold at a loss may still participate in the investigation.
Q: What if my RXT losses are small — is it still worth contacting a lawyer? A: Yes. There is no minimum loss amount required to participate in the investigation.
Q: What do RXT investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Contact SueWallSt, a brand of Levi & Korsinsky LLP, for a no-cost, no-obligation case evaluation at jlevi@levikorsinsky.com or (212) 363-7500. No immediate action is required to remain eligible as an absent class member.
Q: What does it cost me to participate? A: There is no upfront cost to participate. Securities investigations and any resulting actions are generally handled on a contingency basis. No upfront fees, no retainer, and no out-of-pocket costs.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@SueWallSt.com
Tel: (888) SueWallSt
Fax: (212) 363-7171
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SOURCE SueWallSt.com
