Rackspace Technology (NASDAQ:RXT) Releases Earnings Results, Beats Expectations By $0.02 EPS

Rackspace Technology (NASDAQ:RXT - Get Free Report) released its quarterly earnings data on Thursday. The company reported ($0.06) EPS for the quarter, beating analysts' consensus estimates of ($0.08) by $0.02, Zacks reports. The firm had revenue of $665.40 million during the quarter, compared to the consensus estimate of $657.98 million. Rackspace Technology's revenue was down 3.7% compared to the same quarter last year. During the same quarter last year, the business posted ($0.11) earnings per share. Rackspace Technology updated its Q2 2025 guidance to -0.060--0.040 EPS.

Rackspace Technology Trading Down 13.2 %

Shares of Rackspace Technology stock traded down $0.19 on Friday, hitting $1.25. 1,627,981 shares of the company traded hands, compared to its average volume of 928,111. Rackspace Technology has a 12-month low of $1.24 and a 12-month high of $3.41. The firm's 50-day simple moving average is $1.61 and its 200 day simple moving average is $2.21. The company has a market cap of $296.74 million, a P/E ratio of -0.32 and a beta of 2.14.

Wall Street Analysts Forecast Growth

Several brokerages have commented on RXT. UBS Group cut their price target on shares of Rackspace Technology from $2.95 to $1.90 and set a "neutral" rating for the company in a report on Friday. Barclays dropped their price objective on Rackspace Technology from $2.00 to $1.00 and set an "underweight" rating for the company in a research note on Friday, April 25th.

Insider Activity at Rackspace Technology

In related news, EVP Dharmendra Kumar Sinha sold 17,480 shares of Rackspace Technology stock in a transaction on Monday, March 3rd. The shares were sold at an average price of $2.37, for a total value of $41,427.60. Following the transaction, the executive vice president now owns 2,293,829 shares in the company, valued at $5,436,374.73. This trade represents a 0.76 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Mark A. Marino sold 202,230 shares of the business's stock in a transaction on Monday, February 24th. The stock was sold at an average price of $2.61, for a total transaction of $527,820.30. Following the completion of the sale, the chief financial officer now directly owns 1,713,126 shares of the company's stock, valued at $4,471,258.86. This represents a 10.56 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 1,154,204 shares of company stock valued at $2,384,960 over the last 90 days. 2.00% of the stock is owned by insiders.

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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