Quarterly ResultMay 7, 2026, 08:03 AM
Rackspace Q1 Revenue $678M, Net Income $8M; AMD MoU for Enterprise AI
AI Summary
Rackspace Technology reported first-quarter 2026 revenue of $678 million, a 2% increase year-over-year, with net income turning positive at $8 million compared to a net loss of $(72) million in Q1 2025. The company also announced a Memorandum of Understanding with AMD to establish a new category of governed Enterprise AI Infrastructure. Public Cloud revenue grew 7% to $443 million, while Private Cloud revenue decreased 6% to $235 million.
Key Highlights
- Signed a Memorandum of Understanding with AMD to establish governed Enterprise AI Infrastructure.
- Q1 2026 total revenue increased 2% year-over-year to $678 million.
- Q1 2026 net income was $8 million, compared to a net loss of $(72) million in Q1 2025.
- Q1 2026 diluted earnings per share was $0.03, up from $(0.31) in Q1 2025.
- Public Cloud revenue rose 7% to $443 million in Q1 2026.
- Private Cloud revenue decreased 6% to $235 million in Q1 2026.
- Non-GAAP Operating Profit increased 20% to $31 million in Q1 2026.
- Provided FY 2026 total revenue guidance of $2,600 - $2,700 million.