Earnings Releases·Nov 9, 2026, 4:24 PM ET

Rackspace Technology — Third Quarter 2026 Earnings Summary

Total revenue declined 9.3% year-over-year to $609 million, driven by a 17.2% drop in Public Cloud revenue, while Private Cloud revenue grew 4.2% to $260 million.
Operational efficiency improved with a narrowed net loss of $54 million ($0.21 per share) compared to $67 million ($0.28 per share) in the prior year quarter, alongside a 12% increase in Non-GAAP Operating Profit to $36 million.
Management raised full-year 2026 total revenue guidance by $35 million to a midpoint of $2,535 million, while maintaining Non-GAAP Operating Profit, Adjusted EBITDA, and Non-GAAP Loss Per Share outlooks.
Strategic focus has shifted from strategy establishment to execution, targeting the conversion of existing capacity into high-margin operations within the enterprise AI stack.
Capital expenditures increased significantly to $104 million for the quarter, and total debt rose to $2,792.6 million, though liquidity remained robust at $170 million including the Revolving Credit Facility.