Rackspace Guides 2026 Revenue at $2.45B-$2.55B, First Look at AI Pivot Scale
RXT has more than doubled off its 52-week low of $0.393.
Summary
Rackspace Technology issued 2026 revenue guidance of $2.45 billion to $2.55 billion, the first official top-line forecast since its strategic pivot to enterprise AI. The midpoint of $2.5 billion represents modest growth from the $2.3 billion run rate implied by Q1 2026 results, suggesting the AI transition is stabilizing revenue but not yet accelerating it. The company also provided preliminary second quarter 2026 results and updated its full-year 2026 outlook, announcing plans to accelerate its enterprise AI growth vector. This follows the June workforce reduction and the $1.6 billion loan secured to fund the AI buildout, as well as the recent Palantir partnership. The guidance provides a concrete baseline for evaluating whether the AMD and Palantir deals translate into meaningful revenue expansion.
At the time of this announcement, RXT was trading at $6.24 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.6B. The 52-week trading range was $0.39 to $8.60. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.