Can Rackspace (RXT) Reverse Its Slide with a New CEO at the Helm?

Rackspace Technology Inc. (NASDAQ:RXT) has been identified as one of the worst-performing data center stocks in 2025. With a stock decline of over 45% in the past year, the company has been facing challenges such as slowing growth, mounting losses, a lack of transformational deals, and significant leverage. Despite these obstacles, Rackspace is striving to stabilize its private cloud revenue and expand its presence in the mid-market and enterprise segments. While there have been some improvements in certain metrics and cash flow generation, the company will need to execute its strategy effectively to regain investor confidence.

One positive development for Rackspace is the appointment of Gajen Kandiah as Chief Executive Officer on September 3. He takes over from Mr. Amar Maletira, who will continue with the company as the Vice Chairman of the Board. Gajen is expected to lead the company’s AI-first multi-cloud strategy, leveraging his expertise in services, infrastructure, software, and AI.

Furthermore, on September 12, Rackspace announced that it had achieved the Amazon Web Services (AWS) Automotive Competency. This designation highlights the company’s proficiency in accelerating digital transformation on AWS for automotive companies and their suppliers.

Rackspace Technology Inc. is a global cloud and IT services company that specializes in multi-cloud solutions, managed hosting, and data center infrastructure. It assists enterprises in modernizing across various platforms, including AWS, Azure, Google Cloud, and private platforms.

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In conclusion, Rackspace Technology Inc. is navigating through a challenging period but is taking steps to address its issues and capitalize on opportunities in the cloud and IT services industry. The company’s new CEO and recent achievements demonstrate a commitment to innovation and growth. Investors should keep an eye on Rackspace’s progress as it works towards a turnaround in its performance.

Disclosure: None. This article was originally published on Insider Monkey.