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
Benzinga Newsdesk 3 months ago
GuidanceNews
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
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 |
|
| Rev year/year % | 4% | 6% | 9% | 1% | 4% | 6% | |
Public Cloud | 1,575 | 1,600 | 1,625 | 1,450 | 1,475 | 1,500 |
|
| 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 |
|
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.