Is Rackspace Technology, Inc. RXT stock halal to invest in?

No, as of August 2026, Rackspace Technology, Inc. stock (RXT) is not currently classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening halal stocks. To qualify as halal under this standard, a company must keep non-permissible income below 5% of total revenue, keep both interest-bearing investments and interest-bearing debt below 30% of market capitalisation, and have no impermissible preference share structure. Rackspace Technology, Inc. currently does not meet the threshold for the interest-bearing debt screen. Because screenings are refreshed monthly as new financial reports are published, a non-compliant stock can regain compliant status if its financial structure changes. You can track the latest status of Rackspace Technology, Inc. and discover Shariah compliant alternatives among the halal stocks in the Tabadulat app.

How often is Rackspace Technology, Inc. RXT reviewed for Shariah compliance?

Tabadulat reviews Rackspace Technology, Inc. RXT for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for Rackspace Technology, Inc. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does Rackspace Technology, Inc. RXT pass the AAOIFI Non Permissible Income criteria?

Yes, as of August 2026, Rackspace Technology, Inc. stock (RXT) passes the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. Rackspace Technology, Inc.'s income from non-permissible sources is currently within this 5% threshold. Even permissible levels of incidental impure income should still be purified: investors donate the corresponding share of dividends to charity, as reflected in the stock's purification factor. This screen is reassessed monthly using the company's latest financial disclosures.

Does Rackspace Technology, Inc. RXT pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Rackspace Technology, Inc. stock (RXT) passes the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. This limit ensures shareholders are not materially profiting from riba (interest). Rackspace Technology, Inc.'s interest-bearing investments are currently within the 30% threshold. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does Rackspace Technology, Inc. RXT pass the AAOIFI Interest Bearing Debt criteria?

No, as of August 2026, Rackspace Technology, Inc. stock (RXT) does not pass the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. Rackspace Technology, Inc.'s interest-bearing debt currently exceeds this 30% limit, meaning the company relies on riba-based financing beyond the level AAOIFI permits for a halal investment. A company can return to compliance by reducing debt or through changes in market capitalisation, and the screen is reassessed monthly.

What is the dividend purification factor for Rackspace Technology, Inc. RXT stock?

Rackspace Technology, Inc. (RXT) is currently classified as not Shariah compliant, so no dividend purification factor applies, because purification factors are calculated only for stocks that pass the AAOIFI screens. Purification (tazkiyah) is the practice of donating to charity the small portion of dividend income that stems from incidental non-permissible sources, such as interest earned on a compliant company's cash deposits. For non-compliant stocks the issue is not purification but eligibility: under AAOIFI Shariah Standard No. 21 the stock does not currently qualify as a halal investment. If Rackspace Technology, Inc. returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does Rackspace Technology, Inc. RXT pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Rackspace Technology, Inc. stock (RXT) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. Rackspace Technology, Inc. has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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Rackspace Technology, Inc.

NASDAQ

Shariah-Compliant

Not Shariah

RXT

About

Rackspace Technology, Inc.

RXT

Rackspace Technology, Inc. is a leading provider of multicloud solutions, assisting businesses in navigating complex cloud environments to optimize workloads across multiple platforms. Its primary function is to deliver end-to-end cloud services, including infrastructure, application, and data services, all tailored to suit various business needs. Rackspace serves a broad range of industries, offering sophisticated technology solutions for sectors such as healthcare, financial services, energy, and retail. It plays a key role in enabling digital transformation by providing managed cloud solutions, consultancy, and strategic support to enterprises worldwide. Rackspace's significance in the market stems from its expertise in managing cloud technologies from major providers like AWS, Microsoft Azure, and Google Cloud Platform, helping clients enhance their IT efficiency and agility. With over two decades of experience, Rackspace has established itself as a trusted partner for organizations seeking to leverage cloud technology for digital and operational excellence.

Sector:

Technology

Industry:

Software - Infrastructure

Employees:

5100

Website:

https://www.rackspace.com

RXT

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Rackspace Technology, Inc.

About

Rackspace Technology, Inc.

RXT

Frequently asked questions

Is Rackspace Technology, Inc. RXT stock halal to invest in?

How often is Rackspace Technology, Inc. RXT reviewed for Shariah compliance?

Does Rackspace Technology, Inc. RXT pass the AAOIFI Non Permissible Income criteria?

Does Rackspace Technology, Inc. RXT pass the AAOIFI Interest Bearing Investments criteria?

Does Rackspace Technology, Inc. RXT pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Rackspace Technology, Inc. RXT stock?

Does Rackspace Technology, Inc. RXT pass the AAOIFI Preference Share screen?

Can I buy Rackspace Technology (RXT) stock on Tabadulat?

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