Rackspace Technology Reports Second Quarter 2026 Results

About this update from Rackspace Technology, Inc.

[{"type":"image","size":{"original":{"url":"data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///ywAAAAAAQABAAACAUwAOw=="}},"alt":"Rackspace US, Inc."},{"type":"list","bulletedList":true,"items":[{"val":[{"type":"text","tagName":"p","content":" Revenue of $670 million in the Second Quarter, up 1% Year-over-Year "}]},{"val":[{"type":"text","tagName":"p","content":" Private Cloud Revenue was $263 million, up 5% Year-over-Year "}]},{"val":[{"type":"text","tagName":"p","content":" Public Cloud Revenue was $407 million, down 2% Year-over-Year "}]},{"val":[{"type":"text","tagName":"p","content":" Second Quarter 2026 Cash Flow Used in Operating Activities was $32 million; Cash Flow From Operating Activities was $104 million on a Trailing-Twelve-Month Basis "}]}]},{"type":"text","tagName":"p","content":" SAN ANTONIO, Aug. 10, 2026 (GLOBE NEWSWIRE) -- Rackspace Technology, Inc. (Nasdaq: RXT), a global enterprise AI infrastructure and solutions provider, today announced results for its second quarter ended June 30, 2026. "},{"type":"text","tagName":"p","content":" Gajen Kandiah, Chief Executive Officer, stated, \"Enterprises in regulated industries are moving AI from experimentation into production, and they are choosing partners who can be accountable for it.\" "},{"type":"text","tagName":"p","content":" Mr. Kandiah added, \"This quarter, we continued to expand work across our installed base and launched our Managed Compute and Inference Platform, backed by partners including AMD and Palantir. We remain focused on disciplined execution as we build the full enterprise AI stack our customers can trust.\" "},{"type":"text","tagName":"p","content":" Second Quarter 2026 Results "},{"type":"text","tagName":"p","content":" Revenue was $670 million in the second quarter of 2026, an increase of 0.6% on a reported basis and 0.4% on a constant currency (1) basis compared to revenue of $666 million in the second quarter of 2025. "},{"type":"text","tagName":"p","content":" Private Cloud revenue was $263 million in the second quarter of 2026, an increase of 5.5% on a reported basis and 5.2% on a constant currency basis compared to revenue of $250 million in the second quarter of 2025. "},{"type":"text","tagName":"p","content":" Public Cloud revenue was $407 million in the second quarter of 2026, a decrease of 2.3% on a reported basis and 2.5% on a constant currency basis compared to revenue of $417 million in the second quarter of 2025. "},{"type":"text","tagName":"p","content":" Loss from operations was $(33) million in the second quarter of 2026, compared to loss from operations of $(25) million in the second quarter of 2025. "},{"type":"text","tagName":"p","content":" Net loss was $(68) million in the second quarter of 2026, compared to net loss of $(55) million in the second quarter of 2025. "},{"type":"text","tagName":"p","content":" Net loss per diluted share was $(0.27) in the second quarter of 2026, compared to net loss per diluted share of $(0.23) in the second quarter of 2025. "},{"type":"text","tagName":"p","content":" Non-GAAP Operating Profit was $27 million in both the second quarter of 2026 and 2025. "},{"type":"text","tagName":"p","content":" Non-GAAP Loss Per Share was $(0.08) in the second quarter of 2026, a decline of 33% compared to Non-GAAP Loss Per Share of $(0.06) in the second quarter of 2025. "},{"type":"text","tagName":"p","content":" Capital expenditures were $28 million in the second quarter of 2026, compared to $31 million in the second quarter of 2025. "},{"type":"text","tagName":"p","content":" As of June 30, 2026, we had cash and cash equivalents of $111 million and total liquidity of $202 million, including our Revolving Credit Facility. "},{"type":"table","items":[{"val":[{"val":[{"type":"text","tagName":"p","content":" (1) "}]},{"val":[{"type":"text","tagName":"p","content":" "}]},{"val":[{"type":"text","tagName":"p","content":" Constant currency revenue and certain other measures in this release are non-GAAP financial measures. See \"Non-GAAP Financial Measures\" and the tables that accompany this release for definitions and reconciliations of these non-GAAP measures to the most comparable GAAP measures. "}]}]}]},{"type":"text","tagName":"p","content":" "},{"type":"text","tagName":"p","content":" Financial Outlook "},{"type":"text","tagName":"p","content":" Rackspace Technology is providing guidance as follows: "},{"type":"table","items":[{"val":[{"val":[{"type":"text","tagName":"p","content":" "}]},{"val":[{"type":"text","tagName":"p","content":" FY 2026 Guidance "}]}]},{"val":[{"val":[{"type":"text","tagName":"p","content":" Total Revenue "}]},{"val":[{"type":"text","tagName":"p","content":" $2,450 - $2,550 million "}]}]},{"val":[{"val":[{"type":"text","tagName":"p","content":" Private Cloud Revenue "}]},{"val":[{"type":"text","tagName":"p","content":" $1,000 - $1,050 million "}]}]},{"val":[{"val":[{"type":"text","tagName":"p","content":" Public Cloud Revenue "}]},{"val":[{"type":"text","tagName":"p","content":" $1,450 - $1,500 million "}]}]},{"val":[{"val":[{"type":"text","tagName":"p","content":" Non-GAAP Operating Profit "}]},{"val":[{"type":"text","tagName":"p","content":" $125 - $135 million "}]}]},{"val":[{"val":[{"type":"text","tagName":"p","content":" Adjusted EBITDA "}]},{"val":[{"type":"text","tagName":"p","content":" $285 - $295 million "}]}]},{"val":[{"val":[{"type":"text","tagName":"p","content":" Non-GAAP Loss Per Share "}]},{"val":[{"type":"text","tagName":"p","content":" ($0.25) - ($0.30) "}]}]},{"val":[{"val":[{"type":"text","tagName":"p","content":" Non-GAAP Other Income (Expense) "}]},{"val":[{"type":"text","tagName":"p","content":" ($220) – ($230) million "}]}]},{"val":[{"val":[{"type":"text","tagName":"p","content":" Non-GAAP Tax Expense Rate "}]},{"val":[{"type":"text","tagName":"p","content":" 26% "}]}]},{"val":[{"val":[{"type":"text","tagName":"p","content":" Non-GAAP Weighted Average Shares (1) "}]},{"val":[{"type":"text","tagName":"p","content":" 250 - 260 million "}]}]}]},{"type":"table","items":[{"val":[{"val":[{"type":"text","tagName":"p","content":" (1) "}]},{"val":[{"type":"text","tagName":"p","content":" "}]},{"val":[{"type":"text","tagName":"p","content":" Non-GAAP Weighted Average Shares guidance excludes any dilution from the ATM program, as future issuance under the program will depend on prevailing share price and market conditions. "}]}]}]},{"type":"text","tagName":"p","content":" Information about Rackspace Technology's use of non-GAAP financial measures is provided below under \"Non-GAAP Financial Measures\". "},{"type":"text","tagName":"p","content":" Definitions of non-GAAP financial measures and the reconciliations to the most directly comparable measures in accordance with generally accepted accounting principles in the United States (\"GAAP\") are provided in subsequent sections of this press release narrative and supplemental schedules. Rackspace Technology has not reconciled Non-GAAP Operating Profit, Adjusted EBITDA, Non-GAAP Loss Per Share, Non-GAAP Other Income (Expense) or Non-GAAP Tax Expense Rate guidance to the most directly comparable GAAP measure because it does not provide guidance on GAAP net income (loss) or the reconciling items between these Non-GAAP measures and GAAP net income (loss) as a result of the uncertainty regarding, and the potential variability of, certain of these items, such as share-based compensation expense. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort. With respect to Non-GAAP Operating Profit, Adjusted EBITDA, Non-GAAP Loss Per Share, Non-GAAP Other Income (Expense) and Non-GAAP Tax Expense Rate guidance, adjustments in future periods are generally expected to be similar to the kinds of charges and costs excluded from these Non-GAAP measures in prior periods, but the impact of such adjustments could be significant. "},{"type":"text","tagName":"p","content":" Conference Call and Webcast "},{"type":"text","tagName":"p","content":" Rackspace Technology will hold a conference call August 11, 2026, at 7:30am CT / 8:30am ET to discuss its second quarter 2026 results. "},{"type":"text","tagName":"p","content":" Interested parties may access the conference call as follows: "},{"type":"text","tagName":"p","content":" To listen to the live webcast or access the replay following the webcast, please visit our IR website at the following link: https://ir.rackspace.com/news-and-events/events-and-presentations . "},{"type":"text","tagName":"p","content":" To obtain a dial-in number, please pre-register at the following link:  https://register-conf.media-server.com/register/BIc05fae8f41a64ec2b985a0ae9e064237 "},{"type":"text","tagName":"p","content":" Registrants will receive dial-in information and a PIN allowing them to access the live call. "},{"type":"text","tagName":"p","content":" About Rackspace Technology "},{"type":"text","tagName":"p","content":" Rackspace Technology is the operator of the full enterprise AI stack from governed private cloud to AI inference and agents in production. With an Outcomes-as-a-Service model built on secure infrastructure, data foundations, and forward-deployed engineering, Rackspace delivers business results for regulated and mission-critical industries where governance, sovereignty, and uptime are non-negotiable. "},{"type":"text","tagName":"p","content":" Forward-looking Statements "},{"type":"text","tagName":"p","content":" Rackspace Technology has made statements in this press release and other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties. All statements, other than statements of historical fact, included in this press release are, or could be, \"forward-looking statements\" within the meaning of the Private Securities Litigation Reform Act of 1995 and are made in reliance on the safe harbor protections provided thereunder. These forward-looking statements relate to anticipated financial performance, management's plans and objectives for future operations, business prospects, outcome of regulatory proceedings, market conditions, and other matters. Any forward-looking statement made in this press release speaks only as of the date on which it is made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. Forward-looking statements can be identified by various words such as \"expects,\" \"intends,\" \"will,\" \"anticipates,\" \"believes,\" \"confident,\" \"continue,\" \"propose,\" \"seeks,\" \"could,\" \"may,\" \"should,\" \"estimates,\" \"forecasts,\" \"might,\" \"goals,\" \"objectives,\" \"targets,\" \"planned,\" \"projects,\" and similar expressions. These forward-looking statements are based on management's current beliefs and assumptions and on information currently available to management. Rackspace Technology cautions that these statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this press release, including among others, risk factors that are described in Rackspace Technology, Inc.'s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the Securities and Exchange Commission, including the sections entitled \"Risk Factors\" and \"Management's Discussion and Analysis of Financial Condition and Results of Operations\" contained therein. "},{"type":"text","tagName":"p","content":" Non-GAAP Financial Measures "},{"type":"text","tagName":"p","content":" This press release includes several non-GAAP financial measures such as constant currency revenue, Non-GAAP Gross Profit, Non-GAAP Net Income (Loss), Non-GAAP Operating Profit, Adjusted EBITDA and Non-GAAP Earnings (Loss) Per Share. These non-GAAP financial measures exclude the impact of certain costs, losses and gains that are required to be included in our profit and loss measures under GAAP. Although we believe these measures are useful to investors and analysts for the same reasons they are useful to management, as described in the accompanying pages, these measures are not a substitute for, or superior to, GAAP financial measures or disclosures. Other companies may calculate similarly-titled non-GAAP measures differently, limiting their usefulness as comparative measures. We have reconciled each of these non-GAAP measures to the applicable most comparable GAAP measure in the accompanying pages. "},{"type":"text","tagName":"p","content":" IR Contact Sagar Hebbar Rackspace Technology Investor Relations [email protected] "},{"type":"text","tagName":"p","content":" Media Contact Will Link Rackspace Technology Media Relations [email protected] "},{"type":"table","items":[{"val":[{"val":[{"type":"text","tagName":"p","content":" RACKSPACE TECHNOLOGY, INC. 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