Rackspace Technology(NASDAQ) RXT

Rackspace Technology, Inc. helps companies run their data systems online. It makes using artificial intelligence easier for big businesses. These services keep important websites and apps working safely.

What Does Rackspace Do?

• Public Cloud: Managed services and engineering for customer environments hosted on platforms including Amazon Web Services (AWS) and Microsoft Azure; generated $406.8 million in revenue in the three months ended June 30, 2026.
• Private Cloud: Infrastructure and managed services for customer environments hosted in data centers owned by the company or third parties; generated $263.3 million in revenue in the three months ended June 30, 2026.
• Enterprise AI: Infrastructure and tools for artificial intelligence (AI) production using an Outcomes-as-a-Service model to deliver specific business results; focuses on regulated and mission-critical industries.

New Moves in the Cloud

• Formed strategic partnerships with AMD, VMware by Broadcom, and Palantir to manage the full enterprise artificial intelligence stack.
• Initiated a workforce realignment plan in June 2026 to reduce headcount and manage personnel expenses.
• Entered an equity distribution agreement in July 2026 to sell up to $250 million of common stock for growth capital.
• Targeted completion of a two-megawatt deployment of graphics processing units (GPUs), which are specialized chips for AI, by the end of 2026.

How the Company Stands Out

Rackspace manages the entire artificial intelligence process from specialized computer chips to final business results. The company provides a bridge between private infrastructure and public cloud elasticity while maintaining strict boundaries for customer data.

A Look at the Numbers

• Revenue was $670.1 million in the three months ended June 30, 2026, up 0.6% year over year.
• Net loss reached $67.5 million in the three months ended June 30, 2026, up 23.9% year over year.
• Interest expense was $34.2 million in the three months ended June 30, 2026, up 60.6% year over year.
• Capital expenditures totaled $62.9 million in the six months ended June 30, 2026, up from $57.6 million in 2025.
• Total debt outstanding reached $2,311 million in aggregate principal amount as of June 30, 2026.

The Evolving Business

Rackspace is shifting from resale and basic hosting toward higher-margin artificial intelligence and managed cloud services. This transition involves significant investment in specialized hardware to meet the security needs of regulated global industries.