Rackspace Technology, Inc. (RXT)
NASDAQ:RXT
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Earnings Data
Report Date
Aug 11, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
-0.05Last Year’s EPS
-0.06Same Quarter Last Year
Based on 3 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Neutral
The call conveyed a balance of strategic progress and execution momentum alongside near-term financial pressures. Highlights include multi-pronged partnerships (AMD, Palantir, Uniphore), notable customer and sovereign wins, Public Cloud growth (+7% YoY) and a 20% increase in non-GAAP operating profit. Lowlights include gross margin compression (-160 bps overall), a 6% YoY decline in Private Cloud revenue driven by timing, weak operating and free cash flow (operating cash flow $5M; FCF -$9M), and that the AMD collaboration remains a nonbinding MOU with financing and timing risks. Management reaffirmed full-year guidance and is actively deleveraging, but the financial trade-offs and execution/timing risks keep the tone mixed.Company Guidance
Revenue Growth and Services Momentum
Total GAAP revenue of $678 million, up 2% year-over-year. Public Cloud revenue of $443 million, up 7% year-over-year, with services revenue growing 10% year-over-year, reflecting a shift toward higher-value engagements.
Improved Operating Profit and Segment Margins
Non-GAAP operating profit was $31 million, up 20% year-over-year. Private Cloud segment operating margin improved to 24.7% (up 30 basis points YoY). Public Cloud segment operating margin improved to 4.7% (up 50 basis points YoY).
Major Strategic Partnerships and Product Roadmap (AMD, Palantir, Uniphore, Broadcom/VCF9)
Announced an MOU with AMD to integrate AMD Instinct GPUs, EPYC CPUs and ROCm into a governed enterprise AI stack across four capabilities (Enterprise AI Cloud, Enterprise Inference Engine, Inference as a Service, Bare Metal Accelerated Compute). Expanded Palantir collaboration (first joint deal closed in 41 days) and strengthened Uniphore partnership for agent-based, context-aware inference. Deepening VMware Cloud Foundation 9 (Broadcom) relationship as the control plane for governed AI.
Demonstrable GTM Wins and Customer Expansions
Closed regulated and sovereign Private Cloud deals across healthcare, telecom and financial services. Examples: expanded AdventHealth relationship to host 400 additional workloads, multiyear agreement with a major U.K. NHS Foundation Trust, recommitment from a leading global online trading platform. BT selected Rackspace for BT Sovereign Cloud and SDAIA partnership in Saudi Arabia validates sovereign capability.
Active Deleveraging and Liquidity Position
Repurchased approximately $96 million of debt during the quarter to reduce interest burden. Ended the quarter with $94 million in cash and $295 million in total liquidity (including undrawn revolver). Reported reduction in leverage from 8.6x to 8.3x quarter-over-quarter.
Guidance and Confidence
Management reaffirmed full-year 2026 guidance in its entirety (revenue, EBITDA and cash flow outlook unchanged) and stated Private Cloud full-year growth outlook remains on track despite timing dynamics in Q1.
RXT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
RXT Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 07, 2026 | $2.27 | $3.52 | +55.07% |
Feb 26, 2026 | $1.35 | $2.28 | +68.89% |
Nov 06, 2025 | $1.46 | $1.24 | -15.07% |
Aug 07, 2025 | $1.27 | $1.21 | -4.72% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Rackspace Technology, Inc. (RXT) report earnings?
Rackspace Technology, Inc. (RXT) is schdueled to report earning on Aug 11, 2026, After Close (Confirmed).
What is Rackspace Technology, Inc. (RXT) earnings time?
Rackspace Technology, Inc. (RXT) earnings time is at Aug 11, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
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What companies are reporting earnings today?
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What is RXT EPS forecast?
RXT EPS forecast for the fiscal quarter 2026 (Q2) is -0.05.