Rackspace Technology Projects Up to $665 Million in Q2 2025 Revenue

Published 14 hours agoRXT

Rackspace Technology Projects Up to $665 Million in Q2 2025 Revenue

Rackspace Technology has unveiled its financial outlook for the second quarter of 2025, anticipating revenue to range between $653 million and $665 million. This forecast underlines Rackspace's ongoing transformation into a prominent provider of hybrid cloud and AI solutions, aiming to leverage the increasing demand in these fast-evolving markets. Reuters noted that this shift aligns with Rackspace's strategic goals.

In detail, Rackspace expects its Public Cloud revenue to slightly increase, landing between $414 million and $419 million, marking a 1% sequential growth. Meanwhile, Private Cloud revenue projections suggest a range from $255 million to $262 million, indicating a minor sequential decrease. Notably, the company forecasts a non-GAAP operating profit of $29 million to $31 million, reflecting a significant 31% sequential increase.

Additionally, Rackspace is working on optimizing its capital structure, having repurchased $68 million of debt and expects to maintain positive cash flow for the rest of the year. This financial strategy is part of Rackspace's broader effort to strengthen its financial health while capitalizing on burgeoning sectors like AI and hybrid cloud services.

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