Rackspace Q2 Revenue Falls 3%, Tech Company Introduces New Cloud Management Platform
ByAinvest
Thursday, Aug 7, 2025 5:24 pm ET1min read
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Over the past two years, Rackspace has consistently outperformed EPS and revenue estimates, with an 88% and 100% success rate, respectively. However, recent revisions in estimates suggest a slight downward trend, with three downward revisions in the past three months for both EPS and revenue [1].
In addition to its financial performance, Rackspace has been active in strategic initiatives. The company recently launched its enhanced Cloud Management Platform, featuring significant upgrades to the Rackspace Managed Cloud (RMC) offering. This platform integrates AI-enabled tools, providing full-stack observability, intelligent application optimization, and adherence to stringent Service Level Agreements (SLAs) with a flexible consumption-based model [2].
Moreover, Rackspace Technology has formed strategic alliances with Sema4.ai and Rubrik, and announced the launch of Rackspace OpenStack Business Private Cloud. These initiatives aim to strengthen its competitive position in the managed cloud services market and cater to the growing demand for hybrid and multicloud environments.
Rackspace's commitment to sustainability was further highlighted with the Science Based Targets Initiative (SBTi) approval for its net-zero targets. The company aims to reduce emissions by 50% by 2032 and achieve net-zero carbon emissions by 2045. This aligns with Rackspace's goal of helping its customers achieve their sustainability objectives through efficient cloud operations and modernized technology stacks [3].
References:
[1] https://seekingalpha.com/news/4480154-rackspace-technology-q2-2025-earnings-preview
[2] https://www.stocktitan.net/news/RXT/rackspace-technology-launches-cloud-management-platform-with-new-01em52xomw59.html
[3] https://www.globenewswire.com/news-release/2025/07/31/3125389/0/en/Rackspace-Receives-SBTi-Approval-for-Net-Zero-Targets-Reinforcing-Commitment-to-Sustainable-Operations-and-Innovation.html
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Rackspace Technology reported Q2 revenue down 3% YoY, with a revenue range of $653M-$665M expected for Q2. The company also announced the launch of its Cloud Management Platform with new capabilities for hybrid environments, and received SBTi approval for net-zero targets. Additionally, Rackspace Technology formed strategic alliances with Sema4.ai and Rubrik, and announced the launch of Rackspace OpenStack Business Private Cloud.
Rackspace Technology (NASDAQ: RXT) is set to announce its Q2 2025 earnings results on Thursday, August 7th, following the market close. Analysts expect the company to report a revenue range of $653M to $665M, a 3% year-over-year (YoY) decline from the previous quarter. The consensus earnings per share (EPS) estimate stands at -$0.05, a 37.5% increase year-over-year [1].Over the past two years, Rackspace has consistently outperformed EPS and revenue estimates, with an 88% and 100% success rate, respectively. However, recent revisions in estimates suggest a slight downward trend, with three downward revisions in the past three months for both EPS and revenue [1].
In addition to its financial performance, Rackspace has been active in strategic initiatives. The company recently launched its enhanced Cloud Management Platform, featuring significant upgrades to the Rackspace Managed Cloud (RMC) offering. This platform integrates AI-enabled tools, providing full-stack observability, intelligent application optimization, and adherence to stringent Service Level Agreements (SLAs) with a flexible consumption-based model [2].
Moreover, Rackspace Technology has formed strategic alliances with Sema4.ai and Rubrik, and announced the launch of Rackspace OpenStack Business Private Cloud. These initiatives aim to strengthen its competitive position in the managed cloud services market and cater to the growing demand for hybrid and multicloud environments.
Rackspace's commitment to sustainability was further highlighted with the Science Based Targets Initiative (SBTi) approval for its net-zero targets. The company aims to reduce emissions by 50% by 2032 and achieve net-zero carbon emissions by 2045. This aligns with Rackspace's goal of helping its customers achieve their sustainability objectives through efficient cloud operations and modernized technology stacks [3].
References:
[1] https://seekingalpha.com/news/4480154-rackspace-technology-q2-2025-earnings-preview
[2] https://www.stocktitan.net/news/RXT/rackspace-technology-launches-cloud-management-platform-with-new-01em52xomw59.html
[3] https://www.globenewswire.com/news-release/2025/07/31/3125389/0/en/Rackspace-Receives-SBTi-Approval-for-Net-Zero-Targets-Reinforcing-Commitment-to-Sustainable-Operations-and-Innovation.html
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