Overview

* Rackspace ( RXT ) Q3 revenue of $671 mln slightly beats analyst expectations

* Adjusted EPS for Q3 meets analyst expectations

Outlook

* Rackspace expects Q4 2025 revenue between $664 mln and $678 mln

* Company sees Q4 2025 Private Cloud revenue at $244 mln to $252 mln

* Rackspace forecasts Q4 2025 Public Cloud revenue of $420 mln to $426 mln

Result Drivers

* HYBRID MULTICLOUD STRATEGY - CEO Gajen Kandiah emphasized Rackspace's ( RXT ) focus on hybrid multicloud solutions, including work with VMware Cloud Foundation

* AI AND SECURITY SERVICES - Rackspace ( RXT ) continues to deliver modern services for AI, data, and security, enhancing reliability for critical workloads

* CASH FLOW STRENGTH - Company generated strong cash flow, with operating activities contributing $71 mln in Q3

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Slight $671.20 $666.83

Revenue Beat* mln mln (3

Analysts

)

Q3 Meet -$0.05 -$0.05

Adjusted (2

EPS Analysts

)

Q3 Net -$67.10

Income mln

Q3 Beat $32 mln $31 mln

Adjusted (1

Operatin Analyst)

g Income

Q3 Capex $34 mln

Q3 Gross $129.90

Profit mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy."

* Wall Street's median 12-month price target for Rackspace Technology Inc ( RXT ) is $1.50, about 3.3% below its November 5 closing price of $1.55

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)