Rackspace launches $250M equity offering, cuts FY26 outlook by $150M on AI pivot

Filed July 9, 2026 · Period ending July 2, 2026 · ~2 min read

Key Changes

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  Rackspace reduced FY26 revenue outlook by $150M (to $2.45-2.55B) and Adjusted EBITDA by $20M (to $285-295M) as it exits low-margin Public Cloud resale and basic hosting to prioritize Enterprise AI capacity.

  Exhibit 99.1 verify on EDGAR →
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  Company established $250M at-the-market equity offering through Goldman Sachs to fund Enterprise AI expansion, targeting 30 MW capacity by 2028 with expected $450-600M annual revenue at 50%+ EBITDA margins.

  Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR →
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  Q2 2026 preliminary results: revenue $641-649M, GAAP net loss $(91)-$(62)M ($0.36-$0.25 per share), Adjusted EBITDA $58-62M, reflecting ongoing transformation and restructuring expenses of $17-25M.

  Item 8.01 — Other Events verify on EDGAR →