Rackspace Technology (NASDAQ:RXT) Issues Q3 2025 Earnings Guidance

Key Points

• Rackspace Technology has projected a Q3 2025 earnings per share guidance between -0.060 and -0.040, falling short of the consensus estimate of -0.020.
• The company anticipates Q3 revenue to be in the range of $660.0 million to $674.0 million, slightly above the consensus estimate of $666.9 million.
• Rackspace's recent stock performance shows a price of $1.27, with analysts maintaining a consensus "Hold" rating and an average price target of $1.63.

Rackspace Technology (NASDAQ:RXT - Get Free Report) issued an update on its third quarter 2025 earnings guidance on Thursday morning. The company provided earnings per share guidance of -0.060--0.040 for the period, compared to the consensus earnings per share estimate of -0.020. The company issued revenue guidance of $660.0 million-$674.0 million, compared to the consensus revenue estimate of $666.9 million.

Rackspace Technology Stock Performance

RXT traded up $0.05 during midday trading on Thursday, reaching $1.27. 741,446 shares of the company were exchanged, compared to its average volume of 946,346. Rackspace Technology has a one year low of $1.00 and a one year high of $3.41. The stock has a market capitalization of $301.49 million, a P/E ratio of -0.99 and a beta of 2.06. The stock's 50-day simple moving average is $1.30 and its 200 day simple moving average is $1.69.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.01). During the same quarter last year, the business earned ($0.08) earnings per share. The company's quarterly revenue was down 2.7% on a year-over-year basis.

Wall Street Analyst Weigh In

Several research analysts have weighed in on RXT shares. Raymond James Financial reaffirmed a "market perform" rating on shares of Rackspace Technology in a research report on Monday, June 2nd. Royal Bank Of Canada lowered their price target on Rackspace Technology from $3.00 to $2.00 and set a "sector perform" rating for the company in a report on Monday, May 12th. Barclays lowered their target price on Rackspace Technology from $2.00 to $1.00 and set an "underweight" rating for the company in a report on Friday, April 25th. Wall Street Zen upgraded Rackspace Technology from a "sell" rating to a "hold" rating in a research report on Friday, June 27th. Finally, UBS Group cut their target price on Rackspace Technology from $2.95 to $1.90 and set a "neutral" rating on the stock in a report on Friday, May 9th. One analyst has rated the stock with a sell rating and four have assigned a hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $1.63.

Institutional Trading of Rackspace Technology

A hedge fund recently raised its stake in Rackspace Technology stock. AQR Capital Management LLC grew its position in shares of Rackspace Technology, Inc. (NASDAQ:RXT - Free Report) by 228.6% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 264,565 shares of the company's stock after purchasing an additional 184,058 shares during the period. AQR Capital Management LLC owned about 0.11% of Rackspace Technology worth $447,000 at the end of the most recent reporting period. Institutional investors own 82.48% of the company's stock.

Rackspace Technology Company Profile

Rackspace Technology, Inc operates as a multi cloud technology services company in the Americas, Europe, the Middle East, Africa, and The Asia-Pacific region. It operates through three segments: Multicloud Services, Apps & Cross Platform, and OpenStack Public Cloud. The company provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; professional services related to designing and building multi cloud solutions and cloud-native applications; and managed hosting and colocation services.

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