Rackspace Technology (RXT) Q2 2025

Q1 2026 Q4 2025 Q3 2025 Q2 2025

Earnings

Rackspace Technology delivered a mixed second quarter for fiscal 2025, beating on the top line while falling short on the bottom line, a split verdict that nonetheless appeared to encourage investors. Revenue of $666.30 million edged past the $658.86… Read more Rackspace Technology delivered a mixed second quarter for fiscal 2025, beating on the top line while falling short on the bottom line, a split verdict that nonetheless appeared to encourage investors. Revenue of $666.30 million edged past the $658.86 million consensus by 1.13%, though it still represented a 2.7% decline from a year ago as both the Public Cloud segment, down 2.0% to $416.60 million, and Private Cloud, off 4.0% to $249.70 million, continued to contract. The more telling story was profitability, where non-GAAP operating profit surged 34.5% year-over-year to $27.30 million, fueled largely by a 51.4% jump in Public Cloud segment operating profit and a 16.7% reduction in SG&A expenses. Against that progress, the non-GAAP EPS of -$0.06 missed the -$0.05 consensus by 10.70%. CEO Amar Maletira cited 16% bookings growth as evidence of commercial momentum, a claim reinforced by a recently announced cloud services agreement with a major academic medical institution. For Q3, management guided revenue of $660 to $674 million and non-GAAP operating profit of $30 to $32 million, suggesting the turnaround remains methodical but intact.