RXT (Rackspace Technology) Effective Interest Rate on Debt %: 3.26% (As of Mar. 2026)


RXT Rackspace Technology Inc RXT
45 GF Score
Price $5.73
GF Value $1.42
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Rackspace Technology Effective Interest Rate on Debt %?

Rackspace Technology RXT -11.86% 45 Effective Interest Rate on Debt % is 3.26% as of Mar. 2026. GuruFocus rates RXT with a GF Score™ of 45/100 and a GF Value™ of $1.42 (Significantly Overvalued). The stock has 5 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Rackspace Technology's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was $105 Mil. Rackspace Technology's average total debt for the quarter that ended in Mar. 2026 was $3,217 Mil. Therefore, Rackspace Technology's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 3.26%.


Rackspace Technology  (NAS:RXT) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Rackspace Technology Effective Interest Rate on Debt % Related Terms


Rackspace Technology Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Rackspace Technology's Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % Chart

Rackspace Technology Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only 5.15 5.33 6.13 2.94 2.53

Rackspace Technology Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % 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 2.36 2.59 2.59 2.56 3.26

RXT vs AEVA, PRGS, AI: Effective Interest Rate on Debt % Comparison

For the Software - Infrastructure subindustry, Rackspace Technology's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % vs Software Industry

For the Software industry and Technology sector, Rackspace Technology's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Rackspace Technology's Effective Interest Rate on Debt % falls into.


RXT
45GF Score
Rackspace Technology Inc RXT
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Rackspace Technology Effective Interest Rate on Debt % Calculation

Rackspace Technology's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -82.7/( (3281.9+3244.6)/ 2 )
=-1  *  -82.7/3263.25
=2.53 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=3127.3 + 154.6
=3281.9

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=3100.6 + 144
=3244.6

Rackspace Technology's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -104.8/( (3244.6+3188.4)/ 2 )
=-1  *  -104.8/3216.5
=3.26 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=3100.6 + 144
=3244.6

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=3045.2 + 143.2
=3188.4

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 3.26% mean?
Rackspace Technology (RXT) has a Effective Interest Rate on Debt % of 3.26% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Rackspace Technology and its competitors.
Is Rackspace Technology's Effective Interest Rate on Debt % too high?
Rackspace Technology's current Effective Interest Rate on Debt % is 3.26%. Overall, Rackspace Technology has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rackspace Technology's Effective Interest Rate on Debt % compare to AEVA and PRGS?
Rackspace Technology's Effective Interest Rate on Debt % of 3.26% 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 Effective Interest Rate on Debt % for a Software company?
A good Effective Interest Rate on Debt % depends on the Software industry context. However, Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Rackspace Technology and its competitors. Rackspace Technology's current Effective Interest Rate on Debt % is 3.26%. 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?
Based on GuruFocus' analysis, Rackspace Technology (RXT) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.42, compared to a current price of $5.73 — trading 303.5% above its estimated fair value. The current Effective Interest Rate on Debt % is 3.26%. Rackspace Technology's overall GF Score™ is 45/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Rackspace Technology (RXT), the current Effective Interest Rate on Debt % is 3.26% 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 (RXT) Overvalued in 2026?

Based on GuruFocus' analysis, Rackspace Technology stock appears to be overvalued. The current stock price of $5.73 is trading 303.5% above its estimated GF Value™ of $1.42. GuruFocus considers Rackspace Technology to be Significantly Overvalued.

Key valuation signals for RXT:

  • Effective Interest Rate on Debt %: 3.26%
  • GF Value™: $1.42 vs. price of $5.73 (303.5% above fair value)
  • GF Score™: 45/100 with 5 warning signs

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


Rackspace Technology Business Description

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.
45GF Score

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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$5.73
Price
$1.42
GF Value