Rackspace Technology Lowers FY26 Revenue Guidance From $2.60B - $2.70B To $2.45B - $2.55B; Reports Q2 Preliminary Revenue Range $641M - $649M, Adjusted Loss Range $0.11 - $0.08/Share

Rackspace Technology, Inc.

Rackspace Technology, Inc.

RXT

0.00

Rackspace Technology® (NASDAQ:RXT), a global enterprise AI infrastructure and solutions provider, today announced a strategic and financial update on its transition to becoming the operator of the full enterprise AI stack. 

$ in Millions
 		 Prior FY26 Outlook New FY26 Outlook Reason for Change
 
Low Midpoint High Low Midpoint High

Private Cloud

 		 1,025 1,050 1,075 1,000 1,025 1,050
  • Lowered by $25 million.
  • Exiting colocation and basic hosting revenues, reserving capacity for Enterprise AI.
  • Supply timing and geopolitical factors compressing near-term delivery.
Rev year/year % 4% 6% 9% 1% 4% 6%

Public Cloud

 		 1,575 1,600 1,625 1,450 1,475 1,500
  • Lowered by $125 million.
  • Exiting low-margin resale as hyperscalers continue moving customers to direct contracts.
Rev year/year % (7)% (6)% (4)% (15)% (13)% (12)%
Revenue 2,600 2,650 2,700 2,450 2,500 2,550  
Rev year/year % (3)% (1)% 1% (9)% (7)% (5)%
Adjusted EBITDA 305 310 315 285 290 295
  • Lower near-term margins reflect upfront growth investment and restructuring, ahead of AI revenue ramping.

Rackspace Technology anticipates the following preliminary financial results for the second quarter of 2026:

  • Revenue is expected to be in the range of $641 to $649 million, including Private Cloud revenue between $242 to $246 million and Public Cloud revenue between $399 to $403 million.
  • GAAP Net Loss is expected to be in the range of $(91) to $(62) million, and GAAP net loss per diluted share is expected to be in the range of $(0.36) to $(0.25)
  • GAAP Loss from Operations is expected to be in the range of $(53) to $(33) million.
  • Non-GAAP Operating Profit is expected to be in the range of $19 to $23 million.
  • Non-GAAP Loss Per Share is expected to be $(0.11) to $(0.08).
  • Non-GAAP Adjusted EBITDA is expected to be between $58 to $62 million.

 

This page is machine-translated. Sahm tries to improve but does not guarantee the accuracy and reliability of the translation, and will not be liable for any loss or damage caused by any inaccuracy or omission of the translation. *Disclaimer: The above content only represents the author's personal position and opinion and does not represent any position of Sahm Capital Financial Company and Sahm cannot confirm the authenticity, accuracy, and originality of the above content. Investors should consider the risks of investment products in light of their circumstances before making any investment decisions. When necessary, please consult a professional investment advisor. Sahm does not provide any investment advice, nor does it make any commitments and guarantees.