Rackspace Technology (HAM:RT3) EBIT: €-35 Mil (TTM As of Mar. 2026)

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HAM:RT3 Rackspace Technology Inc HAM:RT3
38 GF Score
Price €3.51
GF Value €1.05
! 5 Warning Signs
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What is Rackspace Technology EBIT?

Rackspace Technology HAM:RT3 +10.03% 38 EBIT is €-35 Mil as of Mar. 2026. GuruFocus rates HAM:RT3 with a GF Score™ of 38/100 and a GF Value™ of €1.05. The stock has 5 warning signs investors should review.

Rackspace Technology's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was €30 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was €-35 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Rackspace Technology's annualized ROC % for the quarter that ended in Mar. 2026 was -2.74%. Rackspace Technology's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 18.96%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Rackspace Technology's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -0.97%.


Rackspace Technology  (HAM:RT3) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Rackspace Technology's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=-61.588 * ( 1 - 0% )/( (2245.508 + 2246.492)/ 2 )
=-61.588/2246
=-2.74 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2391.029 - 358.082 - ( 90.353 - max(0, 654.762 - 442.201+90.353))
=2245.508

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2392.071 - 362.262 - ( 80.964 - max(0, 679.544 - 462.861+80.964))
=2246.492

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Rackspace Technology's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=119.024/( ( (632.729 + max(-179.938, 0)) + (622.886 + max(-173.779, 0)) )/ 2 )
=119.024/( ( 632.729 + 622.886 )/ 2 )
=119.024/627.8075
=18.96 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(227.591 + 0 + 124.257) - (358.082 + 80.788 + 92.916)
=-179.938

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(229.917 + 0 + 151.98) - (362.262 + 112.796 + 80.618)
=-173.779

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Rackspace Technology's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=-34.761/3596.905
=-0.97 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Rackspace Technology EBIT Related Terms


Rackspace Technology EBIT Historical Data

* Premium members only.

The historical data trend for Rackspace Technology's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Rackspace Technology EBIT Chart

Rackspace Technology Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only -38.94 -650.61 -580.28 -748.24 -101.71

Rackspace Technology Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -40.61 -24.80 -32.21 -7.52 29.76

HAM:RT3 vs AEVA, TUYA, RZLV: EBIT Comparison

For the Software - Infrastructure subindustry, Rackspace Technology's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Rackspace Technology EV-to-EBIT vs Software Industry

For the Software industry and Technology sector, Rackspace Technology's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Rackspace Technology's EV-to-EBIT falls into.


HAM:RT3
38GF Score
Rackspace Technology Inc HAM:RT3
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Rackspace Technology EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €-35 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €-35 Mil mean?
Rackspace Technology (HAM:RT3) has a EBIT of €-35 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Rackspace Technology.
Is Rackspace Technology's EBIT too high?
Rackspace Technology's current EBIT is €-35 Mil. Overall, Rackspace Technology has a GF Score™ of 38/100, reflecting its overall financial health beyond just this single metric.
How does Rackspace Technology's EBIT compare to AEVA and TUYA?
Rackspace Technology's EBIT of €-35 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Software company?
A good EBIT depends on the Software industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Rackspace Technology. Rackspace Technology's current EBIT is €-35 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rackspace Technology stock overvalued right now?
Rackspace Technology (HAM:RT3) has a current EBIT of €-35 Mil. The stock's GF Value™ is €1.05, compared to a current price of €3.51 — trading 234.3% above its estimated fair value. The current EBIT is €-35 Mil. Rackspace Technology's overall GF Score™ is 38/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Rackspace Technology (HAM:RT3), the current EBIT is €-35 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Rackspace Technology (HAM:RT3) Overvalued in 2026?

Based on GuruFocus' analysis, Rackspace Technology stock appears to be overvalued. The current stock price of €3.51 is trading 234.3% above its estimated GF Value™ of €1.05.

Key valuation signals for HAM:RT3:

  • EBIT: €-35 Mil
  • GF Value™: €1.05 vs. price of €3.51 (234.3% above fair value)
  • GF Score™: 38/100 with 5 warning signs

No single metric tells the full story. See the HAM:RT3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Rackspace Technology Business Description

Other Exchanges RXT:USA
Address 19122 US Highway 281 N, Suite 128, San Antonio, TX, USA, 78258-7667
Rackspace Technology Inc is an end-to-end, hybrid, multi-cloud technology services company. It designs, builds, and operates its customers' cloud environments across all technology platforms, irrespective of technology stack or deployment model. The company's solutions include Application Services, Data, Colocation, Cloud, Managed Hosting, Professional Services, and Security and Compliance. It has two reportable segments: Private Cloud and Public Cloud. Maximum revenue is generated from the Public Cloud segment, which offers cloud solutions through managed services, elastic engineering, and professional services offerings for customer environments hosted on the AWS, Microsoft Azure, and Google Cloud public cloud platforms. Geographically, the company derives its key revenue from the U.S.
38GF Score

Get the complete analysis for HAM:RT3

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€3.51
Price
€1.05
GF Value