Rackspace Technology returns to profitability in Q1 2026 with $8.3 million net income and signs AMD Memorandum of Understanding for enterprise AI cloud infrastructure, driving a 290.85% 30-day share price return.

Rackspace Technology reported US$8.3 million net income in Q1 2026 and signed a Memorandum of Understanding with AMD to develop governed enterprise AI cloud infrastructure.

The company trades at a Price-to-Sales ratio of 0.3x, significantly below the US IT industry average of 2.1x and peer average of 4.2x, with an estimated fair P/S of 1.3x. However, Rackspace posted a net loss of US$146.0 million on US$2,698.4 million of revenue.

A DCF fair value model points to approximately $4.32 per share compared with the current $3.52 price, implying roughly an 18.5% discount, though the analyst target sits at US$2.17 per share.