[iHub News]

Rackspace Shares Rise Despite Lower FY26 Outlook as Company Expands AI Strategy (RXT)

July 9, 2026 10:05 AM
IH Market News

Rackspace Lowers Full-Year Guidance

Rackspace Technology (NASDAQ:RXT) revised its fiscal 2026 outlook lower, reducing its revenue forecast by $150 million and cutting its adjusted EBITDA guidance by $20 million, while outlining plans to accelerate its enterprise artificial intelligence business.

The company attributed the weaker outlook to ongoing supply constraints, geopolitical uncertainty and a strategic decision to exit lower-margin operations.

Rackspace now expects full-year revenue of between $2.45 billion and $2.55 billion, compared with its previous forecast of $2.6 billion to $2.7 billion.

Adjusted EBITDA is now projected at $285 million to $295 million, down from the prior range of $305 million to $315 million. Despite the lower guidance, the company expects its adjusted EBITDA margin to remain around 12%.

Strategic Business Changes Affect Revenue

Most of the revenue reduction comes from Rackspace’s public cloud business, which accounts for approximately $125 million of the revised outlook.

The company said it is reducing lower-margin cloud resale activity as hyperscale providers increasingly move customers to direct contracts.

The remaining $25 million reduction relates to the private cloud segment, where Rackspace is scaling back colocation and traditional hosting services to free up capacity for enterprise AI workloads.

For the second quarter of 2026, preliminary results indicate revenue of between $641 million and $649 million, a GAAP net loss ranging from $91 million to $62 million, and adjusted EBITDA of $58 million to $62 million.

Palantir Partnership Supports AI Expansion

Separately, Rackspace announced a definitive agreement with Palantir to deploy Palantir Foundry and Artificial Intelligence Platform (AIP) across mid-market, regulated and sovereign cloud environments.

Under the agreement, Rackspace has been designated as a preferred deployment partner and currently has approximately 400 Palantir-certified professionals across its workforce.

The companies also revealed they completed their first joint implementation for a U.S.-based solar tracking manufacturer in less than two months.

Rackspace shares rose 8% following the announcement.

AI Growth Targets Extended

The company also announced a capital raise, although financial details were not disclosed.

Looking ahead, Rackspace plans to increase its enterprise AI infrastructure to 15 megawatts by the end of 2027 and expand capacity to 30 megawatts by the end of 2028.

At full deployment, management expects the AI business to generate annual revenue of between $450 million and $600 million, with adjusted EBITDA margins exceeding 50%.

Rackspace Technology stock price

The post Rackspace Shares Rise Despite Lower FY26 Outlook as Company Expands AI Strategy (RXT) appeared first on US Editors.

Original: Rackspace Shares Rise Despite Lower FY26 Outlook as Company Expands AI Strategy (RXT)

[glenn1919]

RXT........................................https://stockcharts.com/sc3/ui/?s=RXT&p=w&b=5&g=0&id=p86431144783

[iHub News]

Rackspace Shares Jump 30% After Securing AMD-Powered AI Infrastructure Agreement (RXT)

June 16, 2026 8:10 AM
IH Market News

Major AI Compute Partnership Boosts Rackspace Stock

Rackspace Technology (NASDAQ:RXT) shares surged 30% on Tuesday after the company announced a definitive agreement with AMD (NASDAQ:AMD) to deploy 30 megawatts of AI computing infrastructure powered by AMD technology.

The deal formalizes the Memorandum of Understanding the two companies unveiled on May 7, 2026, and establishes AMD as a key strategic technology partner within Rackspace’s managed artificial intelligence platform.

Global Deployment Scheduled Through 2028

Under the agreement, the infrastructure rollout will take place in phases across Rackspace’s worldwide data center network beginning in late 2026 and continuing through 2028.

The deployment is expected to significantly expand Rackspace’s AI computing capabilities as enterprises increase investment in large-scale artificial intelligence applications and data-intensive workloads.

Next-Generation AMD Hardware at the Core

The platform will be built around AMD’s latest AI and data center technologies, including Instinct MI355X and MI350P graphics processing units, alongside AMD EPYC central processing units.

These components will be integrated into Rackspace’s Enterprise AI Cloud architecture, which is designed to support enterprise customers operating in highly regulated industries.

Healthcare organizations have already shown interest in the platform for clinical AI applications and large-scale inference workloads, according to the companies.

Focus on Regulated Enterprise Markets

Rackspace said the collaboration is specifically aimed at organizations that require secure, governed and compliant AI infrastructure.

“Enterprises in regulated industries need AI infrastructure that is governed from the ground up, with one operator accountable for business outcomes, not a collection of vendors each owning a piece,” said Gajen Kandiah, CEO of Rackspace Technology.

The company believes the integrated model will simplify AI deployment for businesses navigating complex regulatory requirements.

Joint Sales Effort to Drive Customer Adoption

Rackspace and AMD plan to dedicate commercial resources to expanding adoption of the new AI infrastructure offering.

Teams from both companies will work together to identify opportunities and develop relationships with enterprise customers seeking advanced AI computing capabilities.

The focus will be on organizations transitioning from experimental AI projects toward large-scale deployment of AI-powered workflows within core business operations.

New Managed AI Services Planned

The agreement is expected to accelerate the rollout of several AI-focused services, including Enterprise AI Cloud, Enterprise Inference Engine, Inference as a Service and Bare Metal AMD Instinct solutions.

Together, these offerings are intended to create a new category of managed enterprise AI infrastructure, giving customers access to scalable computing resources designed to support increasingly sophisticated artificial intelligence applications.

The partnership positions both companies to capitalize on growing demand for enterprise-grade AI platforms as organizations seek to move beyond pilot projects and deploy AI across mission-critical systems.

Rackspace Technology stock price

Advanced Micro Devices stock price

Original: Rackspace Shares Jump 30% After Securing AMD-Powered AI Infrastructure Agreement (RXT)

[Horsts]

Looks like this will go to 10.2 months ago I thought something like that. One month ago it falls and I’ve read a negative comment and sold to save my gains, than I missed to go back in.F….Okey, the negative comment is not a lie or a misinformation, but obviously not really relevant right now.That socks a lot.

[hardlesson]

RXT is an animal. It got beat down to under 1.00, but this thing is deserving of an absolute moonshot.

Good fortune to all.

[iHub News]

Rackspace Technology (RXT) Extends Rally as Short Covering Accelerates Gains

May 11, 2026 9:53 AM
IH Market News

Rackspace Technology (NASDAQ:RXT) shares climbed as much as 10% on Monday morning, continuing the strong momentum seen after last week’s explosive rally.

The stock surged 56% on Friday and has now gained more than 200% since the company released earnings and announced a strategic partnership with AMD on May 7.

Short Covering Appears to Fuel Momentum

Recent gains in Rackspace shares appear to have been amplified by short covering activity.

According to the latest published market data, approximately 24.55% of the company’s outstanding shares were sold short, with the days-to-cover ratio standing at 3.1.

The sharp upward move likely forced some bearish investors to close positions, adding further buying pressure to the stock.

AMD Partnership Focuses on Enterprise AI Infrastructure

Last week, Rackspace Technology and AMD announced a Memorandum of Understanding outlining plans for a multiyear strategic partnership centered on enterprise artificial intelligence infrastructure.

The collaboration aims to create an Enterprise AI Cloud platform tailored for regulated industries and sovereign workloads.

Under the agreement, the companies plan to integrate AMD Instinct GPUs and EPYC CPUs into a fully managed and governed AI stack.

Rackspace said it intends to manage the entire platform stack, spanning from semiconductor hardware through to enterprise AI deployment and operational outcomes.

Rackspace Technology stock price

Original: Rackspace Technology (RXT) Extends Rally as Short Covering Accelerates Gains

[glenn1919]

RXT...............................p/m

[iHub News]

Rackspace and AMD partner on AI infrastructure for regulated industries

May 7, 2026 9:38 AM
IH Market News

Rackspace Technology (NASDAQ:RXT) and AMD (NASDAQ:AMD) announced a multiyear strategic collaboration focused on developing enterprise artificial intelligence infrastructure tailored for regulated sectors.

The companies said they signed a memorandum of understanding to pursue the creation of an Enterprise AI Cloud designed for organizations that require strong security, governance, and accountability standards.

Collaboration centered on managed AI infrastructure

Under the proposed partnership, the companies plan to combine AMD Instinct GPUs and EPYC CPUs within a fully managed infrastructure platform.

Rackspace would oversee the complete technology environment, ranging from hardware systems to application management, offering an alternative to current enterprise models where customers typically lease GPU capacity by the hour and manage operations independently.

Four AI-focused service offerings proposed

The framework outlined by the companies includes four potential solutions.

The Enterprise AI Cloud would provide customers with a fully managed private AI environment.

The Enterprise Inference Engine is intended to function as a context-aware runtime platform.

Inference as a Service would deliver managed AMD Instinct GPU infrastructure along with development and deployment tools.

Meanwhile, Bare Metal AMD Instinct would offer dedicated hardware resources for highly specialized AI workloads.

Executives emphasize governance and enterprise deployment

“As enterprises move AI out of the lab and into production environments, they’re asking who they can trust to run it there,” said Gajen Kandiah, CEO of Rackspace Technology. “Governing AI infrastructure in regulated environments with defined accountability is not something you bolt on after the fact.”

Dan McNamara, senior vice president and general manager of Compute & Enterprise AI at AMD, said the collaboration is designed to bring AMD AI computing capabilities into managed private environments for enterprise deployment.

Agreement remains preliminary

The companies noted that the memorandum of understanding serves only as a framework for possible future collaboration and does not represent binding obligations for either party.

They added that no final agreements have been completed and discussions are still in the early stages.

More about Rackspace and AMD

Rackspace Technology provides cloud computing, managed hosting, and infrastructure services for enterprise customers across public, private, and hybrid cloud environments. AMD develops high-performance computing technologies including CPUs, GPUs, and AI accelerators used in data centers, cloud infrastructure, PCs, and enterprise AI applications.

Rackspace Technology stock price

Advanced Micro Devices stock price

Original: Rackspace and AMD partner on AI infrastructure for regulated industries

[glenn1919]

RXT....................................p/m

[glenn1919]

RXT.......................https://stockcharts.com/sc3/ui/?s=RXT&p=w&b=5&g=0&id=p86431144783

[glenn1919]

RXT.......................https://stockcharts.com/sc3/ui/?s=RXT&p=w&b=5&g=0&id=p86431144783

[Horsts]

Are there some new caused the jump🤷‍♂️

[glenn1919]

RXT.........................https://stockcharts.com/sc3/ui/?s=RXT&p=w&b=5&g=0&id=p86431144783

[Horsts]

Alta, Wyoming--(Newsfile Corp. - March 26, 2026) - Cannell Capital LLC - Cannell Capital LLC ("CC") sends this letter to Rackspace and its shareholders. "That quirky investment company which has managed private investment partnerships continually since the good summer of 1992 - brings forth to the public the letter by Mr. Gajen Kandiah, CEO of Rackspace Technology, Inc. in response to our "icebergs ahead" warning. "The dance is over. The punchbowl has been removed. "Between credit and equity, our money is with credit. Accordingly, we have sold the equity after a 321% run. "Caveat emptor," said J. Carlo Cannell, Managing Member. 
March 6, 2026 
Board of Directors?Rackspace Technology, Inc. ("RXT")?1718 Dry Creek Way?San Antonio, TX 78259-1837 Accounts under the purview of Cannell Capital LLC ("CC") have acquired sundry debt securities of Rackspace Technology, Inc. We are delighted with 1) The general progress that RXT has made; 2) The specific and recent Palantir win; and 3) RXT's enviable position in the hybrid cloud managed services space. We are not delighted with 1) The long slog we have endured to talk to management;1 2) The looming tsunami of debt; and 3) As far as we can see, apathy and / or ignorance toward said tsunami. Where is the plan to recapitalize the company? Is there a plan? 
Accordingly, I or a colleague hereby register our interest in serving on the inevitable creditor committee. In March 2024, Abry Partners and Apollo Global Management LLC helped negotiate the $375 million debt reduction and $275 million new money. Today's situation is more dire, however. Most of RXT's debt of $3.3 billion goes current in 14 months. At best RXT can generate $300 million of free cash flow in the next two years. The market pegs your junior debt with a yield to maturity of 78% - a sobering but realistic mark in the event of a refinancing. On February 18, 2026, 542,491,528 shares of RXT traded. The stock was up 468% in the 13 trading days that followed. The prudent thing would be to sell equity into this to ameliorate some of the debt. We believe that RXT has neither an at-the-market offering in place nor a plan to issue equity. (We do not know such definitively because while the company apparently speaks regularly to the few security analysts who follow it, it apparently does not speak to owners - or at least not to us.) 
Best regards, /x/?J. Carlo Cannell?Managing Member 


Credit versus Equity: Credit Always Prevails To quote Warren Buffett "References to EBITDA make us shudder - does management think the tooth fairy pays for capital expenditures?"2 In other words, EBITDA represents earnings "before all the bad stuff". Buffett seemed to warn us that any management that talks about EBITDA is either trying to deceive you or is deceiving themselves. Charlie Munger was less diplomatic. Of EBITDA he said "[N]ow they use it in the business schools. ...that is horror squared. [I]t's bad enough that a bunch of thieves start using a term. But when it gets so common that the business schools copy it, that's not a good result." To wit, Rackspace Technology (RXT) for which Alpha Spread predicts a "meaningful chance of default" and the Altman Z-Score is (2.4). RXT's interest coverage ratio is (1.87), meaning it is not currently generating enough operating profit to cover its interest payments on its $3.2 billion in debt. Here are the facts ($ million, FY Dec): Market Cap $409 Debt $3,198 EV $3,463 LTM Interest Expense $80 LTM FCF $69   Rackspace Technology is a managed service provider which helps businesses design, build, and operate their infrastructure across hybrid cloud environments. A former highflyer which led the charge for alternatives to legacy solutions for on-premises hosting, it has devolved to a baby Accenture with no growth and a GPM of 19.7% (LTM). LTM FCF was $69 million. Let's say that it expands to $100 million in 2026. RXT has two years to address $3.2 billion of debt. The crunch is about to happen. The stock is technically devoid of value as I write. In the last 30 days, the common was up 338% based upon a suspect announcement of an expansion of business with pre-existing customer Palantir. A month ago, the junior debt yielded 89%. You know what that means. A credit committee is probably in the bullpen. In his 2000 letter to shareholders, Warren Buffett noted that many dot-com and telecom companies had massive EBITDA but even more massive interest expenses. When the interest expense exceeds the actual cash coming in, the "EBITDA" becomes a meaningless number on a path to bankruptcy. Cannell Capital LLC?Alta, WY

https://images.newsfilecorp.com/files/8612/289805_e838c7bc44b5bbed_002full.jpg


https://www.newsfilecorp.com/release/289805

[Horsts]

Gap filling until .4 or so ✊

[Horsts]

No next jump 

[Horsts]

Maybe consolidation till next jump.Will see

[Horsts]

Basically, I don’t know. Just guessing and wondering 🤔.They have lots of depth, but if they got a turnaround…….

[bluebird50]

Someone with business acumen can probably do a better job…. 
I currently don’t own…
People/Companies who project prices generally have biases… not always correct ones!  Sounds like your gut is dialed in to me… I have a saying that I picked up years ago… when in doubt? Throw it out. 

[Horsts]

That means that’s too expensive now.But are price targets really useful ?

[madras50]

What a joke with UBSraising the price target from $1.35 to 2 dollars

[Horsts]

It’s just 30% freefloat.Just wondering why it’s not 10 or 20 bucks per share🤷‍♂️

[bwrbad]

RXT NVDA PLTR -are they sharing the same bed or what

[TrendTrade2016]

Exit

[TrendTrade2016]

After hours surge

[Horsts]

Okay, below a buck is unlikely this time. Maybe turnaround is possible.Nobody could see it before.

[TrendTrade2016]

RXT 2.27 pivot triggers 2.52

[bluebird50]

🙈 I missed it too! 

[TrendTrade2016]

RXT running to 2.25

[iHub News]

Rackspace Technology narrows losses as cloud shift and AI strategy shape 2026 outlook

February 26, 2026 10:51 AM
IH Market News

Rackspace Technology (NASDAQ:RXT) reported fourth-quarter and full-year 2025 results highlighting improving profitability and a strategic pivot toward enterprise cloud and artificial intelligence services, as the hybrid cloud provider positions itself for renewed growth in 2026.

Chief Executive Officer Gajen Kandiah said the latest quarter marked a turning point for the company’s transformation efforts.

“Q4 capped a year of meaningful progress and marks a clear inflection point for Rackspace. We made the structural decisions that position us to win — a sharpened focus, the right leadership team, anchor partnerships, and a platform engineering model purpose-built for enterprise AI in regulated environments,” Kandiah stated.

He added that the company’s forward outlook reflects accelerating momentum across its core platforms. “Our 2026 outlook reflects that transition taking hold. Private Cloud is expected to grow year-over-year for the first time in years, and Public Cloud services continue to expand as we deliberately shift toward higher-value enterprise engagements. Together, they form the foundation on which AI is emerging as a tangible and self-reinforcing growth vector. We do not just advise on the journey. We build it, run it, and stay accountable for outcomes. That is what makes Rackspace different, and that is exactly the partner enterprises need right now.”

Fourth-quarter performance

Revenue for the fourth quarter totaled $683 million, broadly stable year over year, slipping 0.4% on a reported basis from $686 million in the same period of 2024 and declining 1% in constant currency terms.

Private Cloud revenue fell 10% year over year to $241 million, reflecting continued pressure in legacy offerings, while Public Cloud revenue rose 6% to $442 million, driven by expanding enterprise engagements and ongoing demand for cloud modernization services.

Operating losses narrowed significantly to $(3) million from $(29) million a year earlier. Net loss improved to $(33) million compared with $(56) million in the prior-year quarter, while diluted loss per share improved to $(0.13) from $(0.25).

Non-GAAP operating profit increased to $41 million from $39 million, and non-GAAP loss per share improved to $(0.01) from $(0.02). Capital expenditures rose to $48 million, up from $27 million in the fourth quarter of 2024.

Full-year 2025 results

For the full year, Rackspace generated revenue of $2.69 billion, down 2% from $2.74 billion in 2024.

Private Cloud revenue declined 6% to $990 million, while Public Cloud revenue edged 1% higher to $1.70 billion, reflecting the company’s ongoing transition toward higher-value cloud services.

Operating loss improved sharply to $(101) million from $(909) million in 2024, while net loss narrowed to $(226) million from $(858) million the prior year. Diluted loss per share improved to $(0.95) compared with $(3.82) in 2024.

Non-GAAP operating profit rose 19% year over year to $126 million, and non-GAAP loss per share improved to $(0.18) from $(0.27). Capital expenditures totaled $139 million, broadly in line with the prior year’s $136 million.

Balance sheet and liquidity

As of December 31, 2025, Rackspace held $106 million in cash and cash equivalents and total liquidity of $397 million, including availability under its new revolving credit facility, providing financial flexibility as the company continues investing in enterprise cloud and AI capabilities.

Rackspace Technology stock price

Original: Rackspace Technology narrows losses as cloud shift and AI strategy shape 2026 outlook

[Horsts]

Krispy Kreme much better than this here

[Horsts]

It’s just premarket push.

[glenn1919]

rxt............................................................P/M

[bluebird50]

You may get it!! 👏
It was stagnant early today so I pushed my cash into another stock for time being!  
May be back? 

[Horsts]

Let’s see what happens tomorrow.

[bluebird50]

Evidently your hopes and dreams!  lol under a buck… really don’t think it’s in store. 🥴

[Horsts]

Looks not promising, if the numbers can’t surprise positive, it could go back below a buck

[bluebird50]

Back in this morning…. 
We will see if it’s a bad idea? 

[Horsts]

Last weeks drive is already gone.Where’s the next victim ?

[Horsts]

The whole market is deep red today, because there’s a orange man in the White House.😄

[Horsts]

Just gapclosingtime this week.Wait and see and enjoy.😊 

[Horsts]

Maybe the gap from .40 to 1.60 will closed this week🙋‍♂️

[Horsts]

Maybe entry one Buck this week coming 🙏

[Horsts]

Yeah, when I watch vids like that, or so, I always hope to find something breaking news, but from where should it come ?Finally it’s simple, it’s a big company, having some problems, when they solve them it will go up to 10 or more, if not, not.

[DOGONE]

True..Here is a better youtube.

[Horsts]

And even though I missed the entry, I wouldn’t believe that they need Palantir to survive. They have other costumers too.And numbers were getting better last view quarter’s.

[Horsts]

Says nothing. Says can go higher or lower.Why creating this ?It’s just for clicks, but no content.

[DOGONE]

Listen here...

[glenn1919]

RXT..............................https://stockcharts.com/sc3/ui/?s=RXT&p=w&b=5&g=0&id=p86431144783

[DOGONE]

Im holding. Earnings next week..and I bet we get more newes too.