The historical rank and industry rank for Rackspace Technology's Net Margin % or its related term are showing as below:
RXT'
s Net Margin % Range Over the Past 10 Years
Min: -31.35 Med: -9.08 Max: -2.79
Current: -5.41
RXT's Net Margin % is ranked worse than 66.8% of 2825
companies
in the Software industry
Industry Median: 2.54
vs RXT: -5.41
Rackspace Technology (NAS:RXT) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Rackspace Technology Net Margin % Related Terms
Rackspace Technology Net Margin % Historical Data
* Premium members only.
The historical data trend for Rackspace Technology's Net Margin % 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.
For the Software - Infrastructure subindustry, Rackspace Technology's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Software Industry
For the Software industry and Technology sector, Rackspace Technology's Net Margin % distribution charts can be found below:
* The bar in red indicates where Rackspace Technology's Net Margin % falls into.
* 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 (RXT) has a Net Margin % of 1.22% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Rackspace Technology and its competitors. According to the industry distribution chart, Rackspace Technology ranks #1887 out of 2825 companies in the Software industry, placing it in the top 66.8%.
Is Rackspace Technology's Net Margin % too high?
Rackspace Technology's current Net Margin % is 1.22%. The Software industry median Net Margin % is 2.54. Rackspace Technology's value of 1.22% is 52% below this industry median. Based on the distribution chart, Rackspace Technology ranks #1887 out of 2825 companies in the Software industry, which is below the industry midpoint. Overall, Rackspace Technology has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rackspace Technology's Net Margin % compare to RDWR and GCT?
According to the Software industry distribution chart, Rackspace Technology ranks #1887 out of 2825 companies for Net Margin %. This places Rackspace Technology in the lower half of its industry. The industry median Net Margin % is 2.54. Rackspace Technology's value of 1.22% is 52% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,825 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rackspace Technology's current Net Margin % of 1.22% is 52% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Rackspace Technology and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rackspace Technology's current Net Margin % is 1.22%. 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 $6.82 — trading 380.3% above its estimated fair value. The current Net Margin % is 1.22% and 52% below the Software industry median of 2.54. Rackspace Technology's overall GF Score™ is 47/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Rackspace Technology (RXT), the current Net Margin % is 1.22% 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 $6.82 is trading 380.3% above its estimated GF Value™ of $1.42.
GuruFocus considers Rackspace Technology to be Significantly Overvalued.
Key valuation signals for RXT:
Net Margin %: 1.22%
GF Value™: $1.42 vs. price of $6.82 (380.3% above fair value)
Industry Position: 52% below the Software median (#1887 of 2825)
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 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.
47GF Score
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Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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