Rackspace Technology, Inc. (RXT)

Rackspace Technology's stock (RXT) has declined 47.5% over the past six months. In Q1 2025, Rackspace reported results that exceeded expectations and launched Cyber Recovery Cloud in partnership with Rubrik. Q2 2025 earnings beat estimates, with improved Public Cloud profitability and continued investments in Rackspace Fabric. The company announced it would release its Q3 2025 financial results on November 6, 2025. Gajen Kandiah was named the new CEO in September 2025. Recent product launches include the FAIR Model Context Protocol Enterprise Accelerator on AWS Marketplace, a partnership with Total Wine & More, achieving AWS Automotive Competency, unveiling an enhanced Cloud Management Platform, and a strategic alliance with Sema4.ai. Analysts have scrutinized the company's growth timeline, leading to downward adjustments in revenue estimates for fiscal years 2025 and 2026.

Rackspace Technology experiences some demand seasonality, as noted in the Q1 2025 earnings call, which contributed to a projected sequential decline in revenue for Q2 2025. The broader trend indicates a shift towards higher-margin, recurring contracts for managed cloud and AI-driven services, with digital transformation and increased cloud adoption expected to fuel demand.

Rackspace Technology, Inc. (RXT) is a global provider of multi-cloud solutions, specializing in hybrid cloud and AI. The company designs, builds, and operates cloud environments for customers across various technology platforms and deployment models. Its services include multi-cloud solutions, application services, security services, private cloud and data center services, professional services, AI solutions, and an email platform.

Rackspace Technology has a global presence, serving customers in over 120 countries. It maintains offices and data centers across North America, Europe, Asia-Pacific, and other regions, including Australia, Canada, the United Kingdom, India, Dubai, Switzerland, the Netherlands, Germany, Singapore, Mexico, Toronto, and Hong Kong. Data centers are located in cities such as Amsterdam, Virginia (USA), Chicago (USA), Dallas (USA), London (UK), Frankfurt (Germany), Hong Kong (China), Kansas City (USA), New York City (USA), San Jose (USA), Shanghai (China), Queenstown (Singapore), and Sydney (Australia).

Rackspace Technology has maintained a positive brand reputation, evidenced by industry recognitions such as being a leader in ISG Provider Lens (2025 and 2024), Frost Radar Leader (2024), and PeMa Quadrant Leader (2024). The company released its 2025 Sustainability Report and received a Silver Award from the UK Armed Forces Covenant.

Rackspace Technology, Inc. (RXT) is primarily owned by institutional shareholders (70.03%), followed by Rackspace Technology insiders (20.91%), and retail investors (9.06%). Major institutional owners include Apollo Management Holdings, L.P., Vanguard Group Inc, and BlackRock, Inc. Major individual/insider owners include Abry Partners LLC, Amar Maletira, Gajakarnan Vibushanan Kandiah, Dharmendra Kumar Sinha and Mark A. Marino.