Rackspace Technology, Inc. (NASDAQ: RXT)

This investigation is for anyone who acquired securities in Rackspace Technology, Inc. (NASDAQ: RXT) prior to July 9, 2026.

The Law Offices of Howard G. Smith believes that the Company and certain of its executives violated federal law. Specifically, the Law Offices of Howard G. Smith believes that the Company misled investors regarding its financial condition. More specifically, the Law Offices of Howard G. Smith believes that the Company misled investors by failing to timely inform investors that changing its business from low-margin cloud infrastructure a high-margin AI business would negatively affect near term guidance.

On July 9, 2026, Rackspace released preliminary second quarter 2026 financial results and lowered its 2026 outlook “[t]o account for [its] transition away from certain low-margin engagements that will be redeployed to [its] enterprise AI business.” The Company now estimates revenue midpoint at $2.5B (versus prior midpoint at $2.65B) and EBITDA midpoint at $290M (versus prior midpoint at $310M). On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Rackspace Technology, Inc. (NASDAQ: RXT) prior to July 9, 2026 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.