Yes, by today’s standards, some of the language of the Quran and even more the Hadith are considered racist. This verse is one of them
From one side Muhammad did free some slaves and did promote Bilal (former slave) as chief caller of prayer. On the other hand, Islam never banned slavery and only slaves who converted to Islam and work to earn their freedom COULD quality for freedom. Slavery was not restricted to any specific race.
On our history, Quran, and Hadith paints a very uncomfortable image. Take this verse Quran (3:106), are we judging it by our current standards? But surely Allah knows everything – could have simply replaced the words with happy and sad – not black and white. .
Quran source: https://quran.com/3/106
The Hadith is littered with racist talks like:
– The Most Hated By Allah Is A Black
The most hateful among the creation of Allah is ONE BLACK MAN among them (Khwarij). One of his hand is like the teat of a goat or the nipple of the breast. (Muslim 5:2334)
– Raisin Head
Narrated Anas bin Malik: Allah’s Apostle said, “You should listen to and obey, your ruler even if he was an ETHIOPIAN (BLACK) slave whose head looks like a raisin.” (Sahih Bukhari 9:89:256)
-Two Blacks Are The Value of One Arab
Jabir (Allah be pleased with him) reported: There came a slave and pledg- ed allegiance to Allah’s Apostle (may peace be upon him) on migration; he (the Holy Prophet) did not know that he was a slave. Then there came his master and demanded him back, whereupon Allah’s Apostle (may peace be upon him) said: Sell him to me. And he bought him for TWO BLACK SLAVES,and he did not afterwards take allegiance from anyone until he had asked him whether he was a slave (or a free man) — (Sahih Muslim 10:3901)
This is just a sample. You can read a lot more involving Black slaves, if you dare to read: https://sunnah.com/search?q=Black+slave
There are 77 hadiths on black slaves, some more disturbing than others.