Monitor cash burn trajectory and private cloud stabilization; the AMD MOU is early-stage and non-binding, offering no near-term revenue. Expect continued pressure on stock until core profitability improves.
Price Chart
Executive Summary
Rackspace Technology reported Q1 2026 revenue of $678M (+2% YoY) and GAAP net income of $8M ($0.03 EPS), swinging from a $72M loss last year. However, Non-GAAP loss per share was $(0.06), unchanged YoY, and operating cash flow slumped to $5M from $12.6M. FY2026 guidance implies continued Non-GAAP losses, reinforcing a bearish outlook.
Key Financial Metrics
Key Facts
- Revenue of $678M, up 2% YoY ($665M)
- GAAP diluted EPS $0.03 vs $(0.31) last year, driven by $55.8M gain on debt extinguishment
- Non-GAAP loss per share $(0.06), same as prior year
- Operating cash flow $5M, down from $12.6M in Q1 2025
- Private Cloud revenue declined 6% YoY to $235M
- FY2026 guidance: Non-GAAP loss per share $(0.15)-$(0.20)
- Announced non-binding MOU with AMD for governed enterprise AI infrastructure
- Total debt $2.7B, cash $94M
Financial Impact
Non-GAAP losses persist; cash flow halved; guidance implies continued negative earnings.
Risk Factors
- Declining Private Cloud revenue (down 6% YoY)
- Negative Non-GAAP earnings and low operating cash flow
- High leverage ($2.7B debt) with thin liquidity ($94M cash)
- Restructuring and transformation costs may persist
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001810019-26-000041 |
| Document: 0001810019-26-000041-index.html | 0001810019-26-000041 |
| Document: 0001810019-26-000041.txt | 0001810019-26-000041 |
| 8-K Data (Synthetic) | 0001810019-26-000041 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 10, 2026 6w ago | Press Release | $3.13 $3.92 | ▲ +25.24% | ▲ +24.61% | $2.82 (−9.90%) |
Sep 8, 2026 6w ago | Insider Cluster | $3.24 $3.48 | ▼ −7.41% | ▼ −8.50% | $2.82 (+12.96%) |
Sep 4, 2026 7w ago | Insider Cluster | $3.23 $3.34 | ▼ −3.41% | ▼ −4.52% | $2.82 (+12.69%) |
Sep 4, 2026 7w ago | 144 | $3.23 $3.34 | ▲ +3.41% | ▲ +4.52% | $2.82 (−12.69%) |
Sep 2, 2026 7w ago | 144 / CLUSTER | $3.29 $3.22 | ▲ +2.13% | ▲ +0.98% | $2.82 (+14.29%) |
Sep 2, 2026 7w ago | 144 | $3.29 $3.22 | ▼ −2.13% | ▼ −0.98% | $2.82 (−14.29%) |
Aug 24, 2026 9w ago | 8-K | $3.40 $3.00 | ▼ −11.76% | ▼ −11.23% | $2.82 (−17.06%) |
Aug 14, 2026 10w ago | 144 | $3.95 $3.12 | ▲ +21.01% | ▲ +19.82% | $2.82 (+28.61%) |
Aug 10, 2026 11w ago | 8-K | $4.35 $3.52 | ▲ +19.08% | ▲ +18.68% | $2.82 (+35.17%) |
Aug 10, 2026 11w ago | Press Release | $4.35 $3.52 | ▲ +19.08% | ▲ +18.68% | $2.82 (+35.17%) |
US Market Status
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