Q: What is Rackspace Technology 2025/Q4 Earnings Preview?
TigerGPT Answer: **Financial Forecast Data:**
- **Earnings Per Share (EPS):**
- Forecast: -0.03 USD
- Prior Year: -0.02 USD
- Percentage Change: -50%
- Significance: The forecasted decrease in EPS indicates a potential decline in profitability or increased losses for the company compared to the same period last year.
- **Total Revenue:**
- Forecast: 672,373,330 USD
- Prior Year: 685,600,000 USD
- Percentage Change: -1.93%
- Significance: The slight decrease in revenue suggests a marginal decline in sales or business activity, which could be a concern if the trend continues.
- **EBIT:**
- Forecast: 32,640,000 USD
- Prior Year: 39,100,000 USD
- Percentage Change: -16.49%
- Significance: The significant decrease in EBIT indicates a reduction in operating profitability, which could be due to higher operating expenses or lower gross margins.
**Quarterly Important News:**
- **Rackspace and Palantir Partner to Run Foundry and AIP in Production:**
- Summary: Rackspace Technology has entered a strategic partnership with Palantir Technologies to help enterprises deploy and operate Palantir Foundry and its Artificial Intelligence Platform in production under a governed managed-operations model. This collaboration combines Rackspace’s cloud hosting, data migration, and ongoing operations with Palantir’s AI software.
- Impact: This partnership could enhance Rackspace's service offerings and attract new customers, potentially leading to increased revenue and market share in the long term. However, the immediate financial impact may not be significant.
**Forecast Viewpoints:**
- **Current Viewpoints:**
- Analysts have mixed opinions on Rackspace Technology's financial outlook. Some view the strategic partnership with Palantir positively, while others are concerned about the declining profitability metrics.
- Relevant Articles:
- Rackspace and Palantir Partner to Run Foundry and AIP in Production
**Stock Trend Analysis:**
- **Stock Price Change:**
- From the last financial report release date to the current date, the stock price has decreased by 29.90%.
- Latest Price: 1.68 USD (as of 2026-02-23)
- Support Level: 1.683 USD (as of 2026-02-20)
- Resistance Level: 1.673 USD (as of 2026-02-20)
- Trend Analysis: The stock is currently trading near its support level, indicating potential stability. However, the significant decline over the past quarter suggests bearish sentiment. If the stock breaks below the support level, further declines could be expected.
**Options Large Order Analysis:**
- **Options Activity:**
- Call Options:
- RXT 20260220 2.0 call (Volume: 2031)
- RXT 20260320 1.5 call (Volume: 1065)
- Put Options:
- RXT 20260821 1.0 put (Volume: 2346)
- RXT 20260320 1.0 put (Volume: 1173)
- RXT 20260320 1.0 put (Volume: 1982)
- Analysis: The higher volume of put options compared to call options suggests a bearish outlook among options traders. This indicates a higher probability that the financial report may fall below expectations.
**Analyst Ratings and Target Price Forecast:**
- **Analyst Ratings:**
- 3 Hold
- **Target Price:**
- Mean: 1.48333 USD
- Low: 1.3 USD
- High: 1.75 USD
- **Valuation Status:**
- The current stock price of 1.68 USD is within the target price range but closer to the high estimate. This suggests that the stock may be slightly overvalued based on analyst expectations.
- Prediction: Given the mixed analyst ratings and the stock's proximity to the high target price, the financial report may not significantly exceed expectations.
**Comprehensive Conclusion:**
- Rackspace Technology is facing challenges with declining profitability and revenue. The strategic partnership with Palantir could provide long-term benefits, but the immediate financial impact is uncertain. The stock has experienced a significant decline, and options activity suggests a bearish outlook. Analysts have mixed ratings, and the stock may be slightly overvalued. Overall, the financial report may not exceed expectations, and caution is advised.
**Disclaimer:**
The above content is generated by the AI robot TigerGPT and does not represent any personal views. The content is for reference only and does not constitute any investment advice.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
