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Get filing alertsRackspace reports Q1 2026 profit, 2% revenue growth; announces preliminary AMD AI partnership
Filed May 7, 2026 · Period ending May 7, 2026 · ~1 min read
Key Changes
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high
Q1 2026 revenue rose 2% to $678M, driven by 7% Public Cloud growth to $443M, offset by 6% Private Cloud decline to $235M. Net income of $8M ($0.03/share) vs. $72M loss in Q1 2025, aided by $55.8M debt extinguishment gain.
Exhibit 99.1 view on EDGAR → -
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FY 2026 guidance: revenue $2.6B-$2.7B, Adjusted EBITDA $305M-$315M, Non-GAAP loss per share $0.15-$0.20. Public Cloud expected $1.575B-$1.625B, Private Cloud $1.025B-$1.075B.
Exhibit 99.1 view on EDGAR → -
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Signed non-binding MOU with AMD for enterprise AI infrastructure. No definitive agreements reached, discussions remain preliminary, no assurance of binding arrangements or anticipated benefits.
Exhibit 99.1 view on EDGAR →
Summary
Rackspace returned to profitability in Q1 2026 with net income of $8 million, a significant improvement from the $72 million loss a year earlier. Revenue grew 2% to $678 million, reflecting continued momentum in Public Cloud (up 7% to $443 million) while Private Cloud declined 6% to $235 million. The profit turnaround was materially aided by a $55.8 million one-time gain on debt extinguishment.
The company provided full-year 2026 guidance projecting revenue of $2.6 billion to $2.7 billion and Adjusted EBITDA of $305 million to $315 million, though it expects a Non-GAAP loss per share of $0.15 to $0.20. Rackspace also announced a preliminary partnership with AMD to develop enterprise AI infrastructure, but emphasized the arrangement remains non-binding with no definitive agreements and no assurance of completion. Investors should focus on whether the Public Cloud growth trajectory can offset ongoing Private Cloud weakness and whether profitability can be sustained without one-time gains.
Section-by-Section Diff
Event · Exhibit 99.1
Rackspace reported Q1 2026 results with 2% revenue growth, announced AMD partnership for enterprise AI infrastructure, and provided FY 2026 guidance.
Added in current filing · view on EDGAR →
Revenue was $678 million in the first quarter of 2026, an increase of 2% on a reported basis and 1% on a constant currency (1) basis compared to revenue of $665 million in the first quarter of 2025.
Private Cloud revenue was $235 million in the first quarter of 2026, a decrease of 6% on a reported basis and 8% on a constant currency basis compared to revenue of $250 million in the first quarter of 2025.
Public Cloud revenue was $443 million in the first quarter of 2026, an increase of 7% on a reported basis and 6% on a constant currency basis compared to revenue of $416 million in the first quarter of 2025. ... Net income was $8 million in the first quarter of 2026, compared to net loss of $(72) million in the first quarter of 2025.
Net earnings per diluted share was $0.03 in the first quarter of 2026, compared to net loss per diluted share of $(0.31) in the first quarter of 2025.
Rackspace reported Q1 2026 revenue of $678 million, up 2% year-over-year, driven by 7% growth in Public Cloud revenue to $443 million, partially offset by a 6% decline in Private Cloud revenue to $235 million. The company returned to profitability with net income of $8 million ($0.03 per diluted share) compared to a net loss of $72 million in Q1 2025. Operating cash flow was $5 million for the quarter and $144 million on a trailing-twelve-month basis.
Added in current filing · view on EDGAR →
Rackspace Technology and AMD sign Memorandum of Understanding to establish a new category of governed Enterprise AI Infrastructure ... the anticipated collaboration with AMD is forward-looking and has been memorialized in a non-binding memorandum of understanding, which is a framework for potential collaboration and does not constitute a binding commitment by either party to complete any specific transaction, financing or other commercial arrangement or transaction. No definitive agreements have been reached, discussions remain preliminary, and there can be no assurance that any such arrangements will be entered into or that the parties will reach definitive agreement on terms, or that the anticipated benefits of the collaboration will ultimately be realized.
Rackspace announced a non-binding Memorandum of Understanding with AMD to establish governed enterprise AI infrastructure as a new market category. The company emphasizes this is preliminary, with no definitive agreements reached and no assurance that any binding arrangements will materialize. The disclosure highlights that any third-party financing required is subject to availability on acceptable terms.
Added in current filing · view on EDGAR →
FY 2026 Guidance
Total Revenue $2,600 - $2,700 million
Private Cloud Revenue $1,025 - $1,075 million
Public Cloud Revenue $1,575 - $1,625 million
Non-GAAP Operating Profit $160 - $170 million
Adjusted EBITDA $305 - $315 million
Non-GAAP Loss Per Share($0.15) - ($0.20)
Non-GAAP Other Income (Expense) ($220) – ($230) million
Non-GAAP Tax Expense Rate26%
Non-GAAP Weighted Average Shares250 - 260 million
Rackspace provided full-year 2026 guidance projecting total revenue of $2.6 billion to $2.7 billion, with Public Cloud revenue of $1.575 billion to $1.625 billion and Private Cloud revenue of $1.025 billion to $1.075 billion. The company expects Non-GAAP Operating Profit of $160 million to $170 million, Adjusted EBITDA of $305 million to $315 million, and a Non-GAAP loss per share of $0.15 to $0.20.
Added in current filing · view on EDGAR →
Gain on debt extinguishment— — %55.8 8.2 %55.8 100.0 %
Rackspace recorded a $55.8 million gain on debt extinguishment in Q1 2026, which significantly contributed to the company's return to profitability. This non-recurring gain represented 8.2% of revenue for the quarter.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 23, 2026 · How we verify