Companies /Technology

Rackspace Technology Inc

NASDAQ: RXT Software - Infrastructure
$3.29
▲ $0.28 (+9.30%) today
Markets closed · 8:21pm ET

Q4 2025 Earnings

Reported Feb 26, 2026, 8:02am ET · SEC source
$-0.01
Beat +65.40%
EPS · est. $-0.03
$682.8M
Beat +1.52%
Revenue · est. $672.6M
−47.8%
Trailing market
RXT vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
0+30%+60%Feb 26Feb 27report 8:02am ETearnings−1.4%+20.7%
0+30%+60%Feb 26Feb 27earnings−1.4%+20.7%
RXT +20.7%S&P 500 −1.4%
0+30%+60%Feb 26Feb 27report 8:02am ETearnings−1.8%+20.7%
0+30%+60%Feb 26Feb 27earnings−1.8%+20.7%
RXT +20.7%NASDAQ −1.8%
−30%0+30%Feb 25Mar 6report 8:02am ETearnings−3.3%+23.7%
−30%0+30%Feb 25Mar 6earnings−3.3%+23.7%
RXT +23.7%S&P 500 −3.3%
−30%0+30%Feb 25Mar 6report 8:02am ETearnings−2.6%+23.7%
−30%0+30%Feb 25Mar 6earnings−2.6%+23.7%
RXT +23.7%NASDAQ −2.6%
+68.89%
Day of report
−14.47%
Next session
+4.39%
One week
−56.14%
30 days

S&P 500 over the same 30 days: −8.32%.

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 1.52% 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

“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.”

Rackspace Technology CEO, on the earnings call

Forward Guidance & Outlook

For FY 2026, Rackspace guided total revenue of $2,600–$2,700 million, Private Cloud revenue of $1,025–$1,075 million (expected to grow year-over-year for the first time in years), Public Cloud revenue of $1,575–$1,625 million, Non-GAAP Operating Profit of $160–$170 million, Adjusted EBITDA of $305–$315 million, Non-GAAP Loss Per Share of ($0.15)–($0.20), Non-GAAP Other Income (Expense) of ($220)–($230) million, Non-GAAP Tax Expense Rate of 26%, and Non-GAAP Weighted Average Shares of 250–260 million.

RXT YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$200.0M$400.0M$600.0M$685.6M$682.8MRevenue$131.7M$120.4MGross Profit$-1,750,292$-3,300,000Operating Income$-23,091,590$-32,700,000Net Income
$0$200.0M$400.0M$600.0MRevenueGross ProfitOperating IncomeNet Income

RXT Revenue by Segment

Public Cloud$442.2M+6.0%
Private Cloud$240.6M−10.4%

Figures from SEC filings and company reports. Not investment advice.