Rackspace Technology, Inc. Stock Price, News & Analysis

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.

Rackspace Technology (NASDAQ: RXT) has announced the launch of its FAIR Model Context Protocol (MCP) Enterprise Accelerator on the AWS Marketplace's new 'AI Agents & Tools' category. The solution enables customers to deploy AI-driven solutions and Agentic AI Professional Services through AWS marketplace.

The FAIR MCP Enterprise Accelerator on Amazon Bedrock offers 70% reduction in legacy application integration for AI Agents and features enterprise-grade infrastructure, including pre-configured server templates, zero-trust architecture, and end-to-end encryption. The solution helps organizations build multi-agent architectures with advanced reasoning, memory retention, and multimodal data processing capabilities.

Rackspace Technology (NASDAQ: RXT) has launched Rackspace OpenStack Business, a new dedicated private cloud solution designed for organizations running mission-critical or regulated workloads. This fully-managed, open-source platform delivers enhanced security, improved performance, and complete operational support without infrastructure management burden.

Building on the success of Rackspace OpenStack Flex introduced in 2024, the new solution offers dedicated OpenStack infrastructure with key benefits including rapid deployment, predictable performance, cost efficiency, and 24x7x365 expert support. The platform works seamlessly with OpenStack Flex, providing a stable foundation for steady-state workloads while enabling rapid scaling during peak demand.

Rackspace Technology (NASDAQ: RXT) has announced a strategic partnership with Sema4.ai to launch the industry's first scalable enterprise AI agent solution. The collaboration combines Rackspace's FAIR services and application management expertise with Sema4's SAFE AI Agent Platform. According to Rackspace's research, while most organizations are interested in AI adoption, only 24% have successfully scaled AI agents in production. The solution enables businesses to deploy custom AI agents across functions like HR, finance, customer support, sales, and operations with built-in security and governance protocols. Sema4's SAFE platform features decentralized, federated agents that can operate independently or collaboratively, automate high-value tasks, and interpret standard operating procedures without complex prompt engineering. The partnership aims to bridge the gap between AI experimentation and full-scale enterprise transformation.