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Stock Market Live July 1, 2026: S&P 500 (SPY) Lower as Investors Wait on the Fed and Fresh Economic Data
Rackspace Technology

Rackspace Technology (RXT) Q4 2025 Earnings

Reported Feb 26, 2026 at 8:02 AM ET · SEC Source

Q4 25 EPS

$-0.01

BEAT +65.40%

Est. $-0.03

Q4 25 Revenue

$682.8M

BEAT +1.52%

Est. $672.6M

vs S&P Since Q4 25

+266.7%

BEATING MARKET

RXT +275.5% vs S&P +8.8%

Full Year 2025 Results

FY 25 EPS

$-0.18

FY 25 Revenue

$2.69B

Market Reaction

Did RXT Beat Earnings? Q4 2025 Results

Rackspace Technology closed Q4 2025 on a stronger-than-expected note, posting a non-GAAP loss per share of just $0.01 against a consensus estimate of $0.03, a 65.40% beat, while revenue of $682.80 million edged past the $672.56 million estimate by 1.… Read more Rackspace Technology closed Q4 2025 on a stronger-than-expected note, posting a non-GAAP loss per share of just $0.01 against a consensus estimate of $0.03, a 65.40% beat, while revenue of $682.80 million edged past the $672.56 million estimate by 1.52% and held essentially flat year-over-year, down only 0.4%. The headline numbers were underpinned by a sharp 22.9% reduction in SG&A expenses, which helped narrow the GAAP operating loss to $3.30 million from $28.80 million a year ago and lift Adjusted EBITDA to $80.70 million from $73.70 million. Beneath the surface, Public Cloud revenue grew 6% to $442.20 million, partially offsetting a 10% decline in Private Cloud to $240.60 million. A newly announced strategic partnership targeting AI deployment in regulated industries added a forward-looking dimension to the results. Looking ahead, Rackspace guided FY 2026 revenue of $2.60 billion to $2.70 billion, with Private Cloud expected to return to year-over-year growth and Non-GAAP Operating Profit expanding to $160 million to $170 million.

Key Takeaways

  • • Public Cloud revenue grew 6% year-over-year in Q4 driven by expansion in cloud services
  • • SG&A expenses decreased 22.9% year-over-year in Q4, significantly narrowing operating loss
  • • Non-GAAP Operating Profit increased 5% in Q4 to $41 million
  • • Adjusted EBITDA grew to $80.7 million in Q4 from $73.7 million a year ago
  • • Full-year operating cash flow improved to $151 million from $40 million in 2024
  • • Absence of goodwill and asset impairment charges that totaled $735 million in FY 2024
24/7 Wall St

RXT YoY Financials

Q4 2025 vs Q4 2024, source: SEC Filings

24/7 Wall St

RXT Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“Q4 capped a year of meaningful progress and marks a clear inflection point for Rackspace. We made the structural decisions that position us to win — a sharpened focus, the right leadership team, anchor partnerships, and a platform engineering model purpose-built for enterprise AI in regulated environments.”

— Gajen Kandiah, Q4 2025 Earnings Press Release

Back to RXT Stock Page