Business UpdateJul 9, 2026, 07:52 AM
Rackspace Partners Palantir for AI, Revises FY26 Outlook
AI Summary
Rackspace Technology announced a strategic and financial update, focusing on its transition to an enterprise AI stack operator and a significant partnership with Palantir. Palantir has named Rackspace a preferred partner in regulated and sovereign markets, with Rackspace scaling to approximately 400 Palantir certifications. While the company projects substantial long-term revenue and EBITDA margins from its Enterprise AI capacity, it has lowered its FY26 revenue outlook by $150M and Adjusted EBITDA outlook by $20M due to prioritization efforts and supply constraints. Preliminary Q2 2026 results show expected revenue between $641M and $649M and a GAAP Net Loss between $(91)M and $(62)M.
Key Highlights
- Palantir named Rackspace a preferred partner in regulated and sovereign markets.
- Rackspace scaled to approximately 400 Palantir certifications across sales, engineering, and delivery.
- FY26 revenue outlook lowered by $150M to a new range of $2.45B-$2.55B.
- FY26 Adjusted EBITDA outlook lowered by $20M to a new range of $285M-$295M.
- Preliminary Q2 2026 revenue expected between $641M and $649M.
- Preliminary Q2 2026 GAAP Net Loss expected between $(91)M and $(62)M.
- Plans to ramp Enterprise AI capacity to 30 MW by the end of 2028.
- Anticipates $450M-$600M annual revenue from 30MW AI deployment with 50%+ Adjusted EBITDA margin.
Price Impact
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