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Rackspace Technology profit margin RXT

Gross, operating and net profit as a share of revenue over the last twelve months, from 2019.

Net margin, 12 months
−5.9%
Operating margin, 12 months
−3.3%
Net margin on a year earlier
+7.8 pts
Peer median
7.4%

Over the twelve months to Jun 30, 2026, Rackspace Technology kept −5.9% of its revenue as net profit, with an operating margin of −3.3% and a gross margin of 17.9%.

Five years earlier its net margin was −9.3%.

The median for 10 application software stocks of a similar size is 7.4%.

Profit margin over time

GrossOperatingNet

Open the interactive chart, with overlays and comparisons

Fiscal year by fiscal year

Fiscal yearNet marginOperating marginGross margin
FY2025−8.4%−3.7%18.9%
FY2024−31.4%−33.2%19.5%
FY2023−28.3%−30.4%21.3%
FY2022−25.8%−21.7%27.4%
FY2021−7.3%−0.1%31.1%
FY2020−9.1%0.9%36.4%
FY2019−4.2%4.2%41.5%

Quarter by quarter

QuarterEndedNet margin, 12 monthsChange on a yearOperating margin
Q2 FY26−5.9%+7.8 pts−3.3%
Q1 FY26−5.4%+5.3 pts−3.0%
Q4 FY25−8.4%+22.9 pts−3.7%
Q3 FY25−9.3%+18.7 pts−4.7%
Q2 FY25−13.7%+15.1 pts−9.9%
Q1 FY25−10.7%+19.3 pts−10.9%
Q4 FY24−31.4%−3.0 pts−33.2%
Q3 FY24−27.9%+7.8 pts−32.3%
Q2 FY24−28.8%+15.5 pts−34.0%
Q1 FY24−30.0%+14.4 pts−33.6%
Q4 FY23−28.3%−2.6 pts−30.4%
Q3 FY23−35.7%−14.1 pts−36.7%

Against its peers

Companies in Software - Application nearest Rackspace Technology's size, closest first, today.

CompanyProfit margin
RXTRackspace Technology−5.9%
MNTNMNTN18.0%
YEXTYext5.9%
NRDSNerdwallet7.6%
TASKTaskUs8.8%
EVEREverQuote15.2%
IBEXIBEX7.2%
CARSCars.com4.7%
OOMAOoma3.6%
HSTMHealthstream6.6%
UPWKUpwork12.9%
Peer median7.4%

Where Rackspace Technology ranks

What the profit margin tells you

Profit as a share of revenue at three levels: gross (after making the product), operating (after running the business) and net (after everything, including tax and interest).

Compare within an industry. 10% is superb for a retailer and poor for a software company.

More on Rackspace Technology

Valuation data, not investment advice. Prices as of . Reported figures come from the company's filings with the SEC.