Rackspace Technology, Inc. Stock Price, News & Analysis

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.

Rackspace Technology's new global study reveals a significant gap in AI adoption among enterprises, with only 13% classified as 'AI Leaders'. These leaders are achieving 3x higher scaling rates and seeing double the ROI compared to peers. The study shows average business AI investment surged 250% from $2.5M in 2024 to $8.7M in 2025, with 83% planning increased investments over five years. AI Leaders report 64% substantial benefits versus 32% for others, with 95% achieving strategic alignment. Key findings show 90% prioritize customer experience and productivity as top AI use cases, while cybersecurity emerges as the most transformative AI application. Despite growth, 68% still struggle with AI scalability, and 71% emphasize infrastructure investment importance. The research, covering 1,420 IT decision-makers across various sectors, indicates AI Leaders are widening their competitive advantage, with 87% viewing AI as a fundamental business driver.

Rackspace Technology (NASDAQ: RXT) has been awarded two prestigious regional Global Alliances Partner of the Year Awards by Dell Technologies for 2025. The company received the Global Alliances EMEA Innovation Partner of the Year and Global Alliances Americas Marketing Partner of the Year awards, highlighting their excellence in innovation and marketing across different regions.

The recognition emphasizes Rackspace's customer-centric approach and its strong 20+ year partnership with Dell Technologies. Together, they provide solutions for private cloud, data modernization, and AI adoption while maintaining compliance, performance, and security at scale. Adrianna Bustamante, VP of Global Partnerships and Demand Gen at Rackspace, emphasized how these awards reflect their global culture of collaboration, innovation, and customer success.

Rackspace Technology (RXT) and Rubrik (RBRK) have announced the Rackspace Cyber Recovery Service, a new managed service for public cloud customers. This service combines Rubrik's data protection and cyber recovery solutions with Rackspace's DevOps expertise to enhance enterprise cyber resilience. The solution enables critical business workloads to be restored within hours through immutable backups, zero-trust architecture, and Infrastructure as Code. The service addresses growing challenges in public cloud environments, particularly relevant as 90% of global IT and security executives reported cyber attacks last year. Key features include proactive protection through continuous anomaly detection, expert management of backup configurations, cloud infrastructure management, and improved compliance support. The solution implements Recovery as Code principles, delivering rapid, repeatable, and auditable workflows aligned with modern DevOps practices. The service begins with a professional services-led transformation and transitions into a fully managed 'Day 2' service, ensuring continuous validation and operational readiness.

Rackspace Technology (RXT) has successfully completed the migration of the Housing Authority of the City of Austin's (HACA) technology infrastructure to Microsoft Azure and Microsoft 365. The migration significantly improves HACA's operational resilience, business continuity, and security capabilities.

HACA, which serves low-income families with housing services and manages assistance programs, previously relied on on-premises technology and open-source tools. After experiencing critical downtime during a severe winter storm in 2021, HACA partnered with Rackspace to transition to a cloud-based environment. The migration involved 373 users and over 3.7 TB of data, resulting in enhanced disaster recovery capabilities and a stronger cybersecurity posture.

Rackspace Technology (RXT) reported mixed Q1 2025 results with revenue of $665 million, down 4% year-over-year. The company's segments showed declines with Private Cloud revenue at $250 million (down 7%) and Public Cloud revenue at $416 million (down 2%). Despite revenue declines, operational improvements were evident with sales bookings growing 9% and Non-GAAP Operating Profit increasing 83% to $26 million. The company reported a net loss of $(72) million, or $(0.31) per share, marking significant improvement from the $(641) million loss in Q1 2024. Cash flow from operations was $13 million in Q1, with $128 million in cash and total liquidity of $473 million. For Q2 2025, Rackspace projects revenue between $653-665 million and Non-GAAP Operating Profit of $25-27 million.

Rackspace Technology and Rubrik have announced a strategic partnership to launch Rackspace Cyber Recovery Cloud, a fully managed isolated recovery service designed to combat rising ransomware threats. The solution combines Rubrik's data protection software with Rackspace's hybrid cloud expertise to enable business recovery within hours instead of weeks following cyber attacks.

The partnership addresses critical market needs as 92% of ransomware victims face data encryption and 60% experience data theft. The service offers an air-gapped platform for recovering mission-critical workloads, particularly beneficial for regulated industries like banking, financial services, insurance, and healthcare.

Key features include backup replication, isolated recovery environments, and comprehensive services such as Cyber Recovery Readiness Assessment and Cloud On-Boarding. The solution aims to provide organizations with enhanced cyber resilience and business continuity through rapid, secure workload restoration in a clean environment.

Rackspace Technology (NASDAQ: RXT) has scheduled its first quarter 2025 earnings release for Thursday, May 8, 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.

Interested parties can access the conference call through two methods: via webcast on Rackspace's IR website or through a pre-registered dial-in system. The webcast and replay will be available at ir.rackspace.com/news-and-events/events-and-presentations.

Rackspace Technology (NASDAQ: RXT) has launched OpenStack Flex, a new enterprise-grade multi-tenant Infrastructure-as-a-Service (IaaS) cloud solution. The service, built on OpenStack software which Rackspace co-created with NASA, offers 24x7 expert support and fully monitored infrastructure.

Key features include:

• High availability and fault tolerance
• Cost-efficient license-free platform
• Integrated orchestration for operating systems, VMs, and containers
• Enhanced security and compliance measures
• Scalable infrastructure capabilities

According to IDC Research Director Rob Tiffany, over 80% of cloud buyers plan to modernize their cloud estate, with nearly 90% already operating or deploying hybrid cloud solutions. The platform aims to address modernization demands while preventing vendor lock-in and improving hybrid-cloud effectiveness.