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® (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.