Rackspace Technology, Inc. Stock Price, News & Analysis

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.

Rackspace Technology (NASDAQ: RXT) has received approval from the Science Based Targets Initiative (SBTi) for its emissions reduction goals. The company has committed to ambitious targets including cutting emissions by 50% by 2032 and 90% by 2045 to achieve net-zero carbon emissions.

Currently powering 80% of its global data centers with renewable energy, Rackspace is working towards reaching 100% through strategic partnerships. The company's Workload Aware Modernization program helps customers reduce their cloud carbon footprint by identifying wasted resources and improving infrastructure efficiency.

This initiative comes as global data center energy consumption is expected to more than double by 2030, with AI being a major driver of demand.

Rackspace Technology (NASDAQ: RXT), a leading hybrid cloud and AI solutions provider, has scheduled its second quarter 2025 earnings release for August 7, 2025, after market close. The company will host a conference call at 5:00 PM ET on the same day, featuring CEO Amar Maletira and CFO Mark Marino, who will discuss the financial results.

Investors can access the conference call through a live webcast on Rackspace's IR website or by pre-registering for a dial-in number. Registered participants will receive access credentials to join the live call.