Rackspace Technology (NASDAQ:RXT) Releases Q4 2025 Earnings Guidance

Rackspace Technology (NASDAQ:RXT) updated its fourth quarter 2025 earnings guidance on Thursday. The company provided EPS guidance of -0.050–0.030 for the period, compared to the consensus EPS estimate of -0.010. The company issued revenue guidance of $664.0 million-$678.0 million, compared to the consensus revenue estimate of $676.7 million.

Rackspace Technology Price Performance

NASDAQ:RXT traded down $0.22 during trading hours on Friday, hitting $1.25. 1,287,248 shares of the company were exchanged, compared to its average volume of 977,161. Rackspace Technology has a 52-week low of $1.00 and a 52-week high of $3.41. The stock has a market capitalization of $298.00 million, a price-to-earnings ratio of -0.77 and a beta of 2.07. The company’s 50 day moving average price is $1.47 and its 200-day moving average price is $1.35.

Rackspace Technology (NASDAQ:RXT) last posted its quarterly earnings data on Thursday, November 6th. The company reported ($0.05) EPS for the quarter, hitting the consensus estimate of ($0.05). The company had revenue of $671.20 million for the quarter, compared to analyst estimates of $666.83 million. The company’s quarterly revenue was down .7% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.04) earnings per share. Rackspace Technology has set its Q4 2025 guidance at -0.050–0.030 EPS.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a research note on Wednesday, October 8th. BMO Capital Markets dropped their target price on Rackspace Technology from $1.75 to $1.40 and set a “market perform” rating on the stock in a research report on Tuesday, August 12th. Finally, Wall Street Zen upgraded shares of Rackspace Technology from a “sell” rating to a “hold” rating in a report on Saturday, September 20th. Four research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus target price of $1.58.

Insiders Place Their Bets

In other Rackspace Technology news, Director Anthony Scott sold 40,000 shares of the stock in a transaction dated Monday, September 8th. The shares were sold at an average price of $1.43, for a total value of $57,200.00. Following the completion of the transaction, the director directly owned 191,045 shares of the company’s stock, valued at approximately $273,194.35. This trade represents a 17.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Amar Maletira sold 1,780,619 shares of the company’s stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $1.35, for a total value of $2,403,835.65. Following the completion of the sale, the chief executive officer owned 4,608,619 shares in the company, valued at approximately $6,221,635.65. This represents a 27.87% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 2.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Rackspace Technology

Institutional investors and hedge funds have recently modified their holdings of the company. Engineers Gate Manager LP raised its stake in shares of Rackspace Technology by 47.1% in the 2nd quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock valued at $45,000 after acquiring an additional 11,141 shares during the period. Creative Planning increased 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 purchasing an additional 13,708 shares in the last quarter. XTX Topco Ltd raised its position in Rackspace Technology by 62.8% in the second quarter. XTX Topco Ltd now owns 57,682 shares of the company’s stock valued at $74,000 after purchasing an additional 22,243 shares during the period. BNP Paribas Financial Markets lifted its stake in shares of Rackspace Technology by 25.4% during the second quarter. BNP Paribas Financial Markets now owns 119,493 shares of the company’s stock worth $153,000 after purchasing an additional 24,173 shares in the last quarter. Finally, JPMorgan Chase & Co. boosted its position in shares of Rackspace Technology by 1.8% in the third quarter. JPMorgan Chase & Co. now owns 1,464,389 shares of the company’s stock worth $2,065,000 after buying an additional 26,510 shares during the period. Hedge funds and other institutional investors own 82.48% of the company’s stock.

About Rackspace Technology

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.