Rackspace Technology (NASDAQ:RXT) Updates 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) updated its third quarter 2025 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of -0.060--0.040 for the period, compared to the consensus 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.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on RXT shares. Barclays reduced their price objective on shares of Rackspace Technology from $2.00 to $1.00 and set an "underweight" rating on the stock in a research note on Friday, April 25th. Wall Street Zen downgraded shares of Rackspace Technology from a "hold" rating to a "sell" rating in a research note on Saturday. Royal Bank Of Canada lowered their price objective 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. Raymond James Financial reissued a "market perform" rating on shares of Rackspace Technology in a report on Monday, June 2nd. Finally, UBS Group lowered their price objective on Rackspace Technology from $2.95 to $1.90 and set a "neutral" rating for the company in a report on Friday, May 9th. Two investment analysts have rated the stock with a sell rating and three have given a hold rating to the company's stock. According to data from MarketBeat.com, Rackspace Technology currently has a consensus rating of "Hold" and a consensus price target of $1.63.

Rackspace Technology Stock Performance

Shares of NASDAQ:RXT traded down $0.03 during midday trading on Monday, reaching $1.19. The company had a trading volume of 80,500 shares, compared to its average volume of 953,185. The company has a fifty day simple moving average of $1.30 and a two-hundred day simple moving average of $1.67. The firm has a market cap of $281.31 million, a price-to-earnings ratio of -0.73 and a beta of 2.06. Rackspace Technology has a 1-year low of $1.00 and a 1-year high of $3.41.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported ($0.06) earnings per share for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.01). The firm had revenue of $666.30 million during the quarter, compared to analyst estimates of $658.86 million. During the same quarter last year, the company earned ($0.08) EPS. The company's quarterly revenue was down 2.7% compared to the same quarter last year.

Institutional Investors Weigh In On Rackspace Technology

A number of hedge funds and other institutional investors have recently made changes to their positions in RXT. AQR Capital Management LLC increased its position in Rackspace Technology by 228.6% during the first quarter. AQR Capital Management LLC now owns 264,565 shares of the company's stock worth $447,000 after buying an additional 184,058 shares during the last quarter. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Rackspace Technology in the first quarter valued at about $113,000. Geode Capital Management LLC grew its holdings in Rackspace Technology by 17.9% in the 2nd quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company's stock valued at $2,643,000 after buying an additional 313,636 shares during the last quarter. Finally, Creative Planning grew its holdings in Rackspace Technology by 114.2% in the 2nd quarter. Creative Planning now owns 25,715 shares of the company's stock valued at $33,000 after buying an additional 13,708 shares during the last quarter. 82.48% of the stock is owned by hedge funds and other institutional investors.

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.