Rackspace Technology, Inc. Stock Price, News & Analysis

Total Wine & More (RXT) partnered with Rackspace Technology to advance a strategic multicloud digital transformation on Oct. 15, 2025. The retailer adopted Microsoft Azure and Google Cloud for different workloads and selected Rackspace managed services for unified support.

Key solutions include Rackspace Elastic Engineering for inventory modernization and Azure backend migration, Rackspace DBA Services for ecommerce database reliability, and Rackspace Optimizer+ which helped reduce cloud costs by 20% year-to-date. Total Wine operates 284 superstores across 29 states, and the partnership aims to scale operations, improve cost efficiency, and accelerate innovation.

Rackspace Technology (NASDAQ: RXT) has achieved the Amazon Web Services (AWS) Automotive Competency, demonstrating its expertise in supporting automotive companies with cloud transformation solutions. This recognition comes after five years of intensive work with OEMs and Tier 1 suppliers globally.

The company recently showcased its capabilities by helping a major German automotive OEM modernize its shopfloor IT infrastructure on AWS, implementing an event-driven data pipeline for real-time machinery data monitoring and preparing for Industry 4.0 initiatives.

Rackspace Technology (NASDAQ: RXT) has granted inducement equity awards to its new Chief Executive Officer, Gajen Kandiah. The compensation package includes 4,000,000 restricted stock units (RSUs) and options to purchase 6,000,000 shares at $1.30 per share.

The stock options have a ten-year term, and both RSUs and options will vest equally over four years from 2026 to 2029, contingent on Kandiah's continued employment. The awards were granted outside the company's standard equity incentive plan and were approved by independent board members in compliance with Nasdaq Listing Rule 5635(c)(4).

Rackspace Technology (NASDAQ: RXT) has appointed Gajen Kandiah as its new Chief Executive Officer, effective September 3, 2025. Kandiah, who previously served as President and COO of Hitachi Digital and CEO of Hitachi Vantara, brings extensive experience in services, infrastructure, software, and AI.

The leadership change aims to advance Rackspace's AI-first multicloud strategy, focusing on delivering governed multicloud operations for AI and data workloads. Former CEO Amar Maletira will transition to Vice Chairman of the Board. Notably, during Kandiah's 16-year tenure at Cognizant, he helped grow the business from $368 Million to over $16 Billion.

Under Kandiah's leadership, Rackspace will prioritize platform innovation in cloud management and private AI, strengthen cloud partnerships, and enhance execution across operations.

Rackspace Technology (NYSE:RXT) has announced a strategic "Better Together" partnership with SMPL-C to streamline CMMC compliance for government contractors. The partnership, delivered through Rackspace Technology Government Solutions, combines SMPL-C's AI-powered compliance automation platform with Rackspace's secure, CMMC-authorized cloud infrastructure.

The collaboration aims to help commercial enterprises meet Cybersecurity Maturity Model Certification (CMMC) requirements by integrating SMPL-C's intelligent documentation and workflow engine with Rackspace's infrastructure and advisory services. Key benefits include accelerated CMMC readiness, secure cloud hosting across AWS and Azure, contracting agility, and continuous guidance through Rackspace's Elastic Engineering for Security.

Rackspace Technology (NASDAQ: RXT) has announced significant AI enhancements to its Rackspace Cyber Defense Center (RCDC) through the introduction of RAISE (Rackspace AI Security Engine). This new AI-driven security system provides 24/7 threat detection and response across cloud environments.

RAISE combines human expertise with machine learning to detect patterns, recommend actions, and continuously improve through a self-learning model. The system enriches security events with contextual information, enabling faster and more decisive responses to cyber threats.

The innovation has led to Rackspace being recognized as a leader in three categories by ISG's 2025 Provider Lens™ Cybersecurity Report: Strategic Security Services, Next-Gen SOC MDR Services, and Technical Security Services.

Rackspace Technology (NASDAQ: RXT) has announced a strategic partnership with Dell Medical School at The University of Texas at Austin to provide comprehensive IT infrastructure and managed services. Dell Med will become the first academic medical center to go fully cloud-native, with Rackspace managing its Epic Electronic Health Record (EHR) system and other healthcare-related data center needs.

The partnership marks a significant shift in healthcare IT infrastructure, as Dell Med plans to build a new academic medical center without traditional physical data centers. Rackspace will provide a fully managed service model, ensuring secure and compliant cloud services with built-in redundancy for patient safety and system resilience.

Rackspace Technology (NASDAQ:RXT) reported Q2 2025 financial results with revenue of $666 million, down 3% year-over-year. The company's performance showed mixed results across segments, with Private Cloud revenue declining 4% to $250 million and Public Cloud revenue decreasing 2% to $417 million.

The company reported a net loss of $55 million, or $(0.23) per diluted share, compared to net income of $25 million in Q2 2024. However, Non-GAAP Operating Profit improved by 34% to $27 million. Bookings grew 16% year-over-year, and the company maintained a strong liquidity position of $414 million.

For Q3 2025, Rackspace provided guidance projecting revenue between $660-674 million and Non-GAAP Operating Profit of $30-32 million.

Rackspace Technology (NASDAQ: RXT) has announced the launch of its enhanced Cloud Management Platform, featuring significant upgrades to the Rackspace Managed Cloud (RMC) offering. The new platform provides a unified AI-enabled framework for managing hybrid and multicloud environments.

Key features include full-stack observability, intelligent application optimization, and enterprise-grade SLAs with a flexible consumption-based model. The platform integrates AIOps tools and native cloud services, offering comprehensive cloud operations management, cost optimization, and service integration capabilities.