RXT (Rackspace Technology) Moat Score: 3/10 (As of Jun. 27, 2026)


RXT Rackspace Technology Inc RXT
45 GF Score
Price $5.97
GF Value $1.42
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Rackspace Technology Moat Score?

Rackspace Technology RXT -5.97% 45 Moat Score is 3 as of Jun. 27, 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. Among 2,848 Software companies, Rackspace Technology ranks better than 84.66% on this metric.

Rackspace Technology has the Moat Score of 3, which implies that the company might have No Moat - Very weak/transient advantages.

Rackspace Technology has No Moat: Rackspace Technology Inc operates in a highly competitive cloud services market with limited market leadership and no significant customer switching costs. The company lacks strong brand strength or durable cost advantages, resulting in a very weak competitive position.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Rackspace Technology might have No Moat - Very weak/transient advantages.

Rackspace Technology  (NAS:RXT) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Rackspace Technology Moat Score Related Terms

RXT vs RDWR, GCT, TUYA: Moat Score Comparison

For the Software - Infrastructure subindustry, Rackspace Technology's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Software Industry

For the Software industry and Technology sector, Rackspace Technology's Moat Score distribution charts can be found below:

* The bar in red indicates where Rackspace Technology's Moat Score falls into.


RXT
45GF Score
Rackspace Technology Inc RXT
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 3 mean?
Rackspace Technology (RXT) has a Moat Score of 3 as of Jun. 27, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Rackspace Technology ranks #437 out of 2848 companies in the Software industry, placing it in the top 15.3%.
Is Rackspace Technology's Moat Score too high?
Rackspace Technology's current Moat Score is 3. Based on the distribution chart, Rackspace Technology ranks #437 out of 2848 companies in the Software industry, which is in the top quartile — a strong position relative to peers. 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 Moat Score compare to RDWR and GCT?
According to the Software industry distribution chart, Rackspace Technology ranks #437 out of 2848 companies for Moat Score. This places Rackspace Technology in the top 15% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Software company?
A good Moat Score depends on the Software industry context. However, Moat Score 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Rackspace Technology's current Moat Score is 3. 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 $5.97 — trading 320.1% above its estimated fair value. The current Moat Score is 3. 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 Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Rackspace Technology (RXT), the current Moat Score is 3 as of Jun. 27, 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 $5.97 is trading 320.1% above its estimated GF Value™ of $1.42. GuruFocus considers Rackspace Technology to be Significantly Overvalued.

Key valuation signals for RXT:

  • Moat Score: 3
  • GF Value™: $1.42 vs. price of $5.97 (320.1% 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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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$5.97
Price
$1.42
GF Value