Rackspace Technology, Inc. (NASDAQ:RXT) shares continued their massive rally Friday. This follows a high-profile partnership and better-than-expected revenue.

Revenue Beats Street Estimates

Rackspace reported first-quarter sales of $678.100 million. This marks a 2% year-over-year increase. The figure topped the Street estimate of $660.83 million. Public cloud revenue led the way, climbing 7% to $443 million. However, private cloud revenue fell 6% to $235 million.

Strategic AMD Partnership

The company signed a Memorandum of Understanding with Advanced Micro Devices, Inc. (NASDAQ:AMD). They aim to create managed enterprise AI infrastructure. The collaboration integrates AMD's Instinct GPUs and EPYC CPUs.

Operating Profits Jump

Adjusted operating profit reached $31 million, a 20% increase. Despite this, the company reported an adjusted loss of six cents per share. This missed the analyst consensus of a four-cent loss. Gross margins also contracted to 17.6% from 19.1%.

2026 Fiscal Outlook

Rackspace reaffirmed its fiscal 2026 sales guidance of $2.6 billion to $2.7 billion. This aligns with the Street estimate of $2.64 billion.

Critical Levels To Watch for RXT Stock

The bigger-picture trend is clearly bullish: RXT is trading far above its major moving averages, including about 217% above the 20-day SMA ($1.68) and more than 300% above the 200-day SMA ($1.29).

RSI is the key momentum read right now, and at 81.66 it's firmly overbought. The golden cross in April (50-day SMA above the 200-day SMA) adds longer-term trend confirmation.

RXT Stock Price Activity: Rackspace Technology shares were up 54.26% at $5.43 at the time of publication on Friday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

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