Rackspace Posts Q2 Revenue of $670M, Net Loss of $(68)M, and Debuts FY 2026 Guidance

summarizeSummary

Rackspace Technology reported Q2 2026 revenue of $670M, a net loss of $(68)M, and issued initial FY 2026 guidance for revenue of $2.45B–$2.55B and a Non-GAAP loss per share of $(0.25)–$(0.30).

check_boxKey Events · Earnings and Guidance · RXT

• Q2 Revenue Up 1% to $670M

  Revenue reached $670 million, as 5% growth in Private Cloud to $263 million offset a 2% decline in Public Cloud to $407 million.

• Net Loss Widens to $(68)M

  The net loss came in at $(68) million, or $(0.27) per share, compared with $(55) million, or $(0.23) per share, a year ago, pressured by higher interest expense and restructuring costs.

• First FY 2026 Guidance Issued

  Full-year guidance projects revenue of $2.45 billion to $2.55 billion, Non-GAAP Operating Profit of $125 million to $135 million, Adjusted EBITDA of $285 million to $295 million, and a Non-GAAP loss per share of $(0.25) to $(0.30).

• Liquidity Position: $202M Total

  As of June 30, 2026, cash and equivalents stood at $111 million, with total liquidity of $202 million including the revolving credit facility, offering limited cushion against $2.8 billion in total debt.

auto_awesomeAnalysis · RXT · Technology

Rackspace Technology delivered Q2 2026 revenue of $670 million, a 1% year-over-year increase, but the net loss deepened to $(68) million from $(55) million a year earlier. For the first time, the company issued full-year 2026 guidance, calling for revenue of $2.45 billion to $2.55 billion and a Non-GAAP loss per share of $(0.25) to $(0.30). These figures land amid a strategic shift toward enterprise AI, a recently launched $250 million ATM program, and a pending securities fraud class action lawsuit. With cash of $111 million and total liquidity of $202 million, the runway is tight against a heavy debt load, making the operational trajectory and forward outlook especially critical for investors.