---
title: "Rackspace Technology Q1 revenue rises 2%, beats estimates"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/285549667.md"
datetime: "2026-05-07T12:18:27.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/285549667.md)
  - [en](https://longbridge.com/en/news/285549667.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/285549667.md)
---

# Rackspace Technology Q1 revenue rises 2%, beats estimates

)

Overview

-   US hybrid cloud and AI provider’s Q1 revenue rose 2% yr/yr, beating analyst expectations
-   Net income turned positive at $8 mln after a loss in prior year
-   Company signed MOU with AMD to develop governed enterprise AI infrastructure

Outlook

-   Rackspace Technology sees FY 2026 revenue between $2.6 bln and $2.7 bln
-   Company expects FY 2026 public cloud revenue of $1.575 bln to $1.625 bln
-   Rackspace Technology expects FY 2026 non-GAAP loss per share of ($0.15) to ($0.20)

Result Drivers

-   PUBLIC CLOUD GROWTH - Public Cloud revenue rose 7% yr/yr, offsetting Private Cloud declines
-   REGULATED ENTERPRISE AI FOCUS - Co said results reflect its strategy to serve regulated enterprises seeking governed AI infrastructure, per CEO Gajen Kandiah
-   PRIVATE CLOUD WEAKNESS - Private Cloud revenue fell 6% yr/yr, weighing on overall growth Company press release:

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Beat $678.10 $660.83

Revenue mln mln (3

Analysts

)

Q1 Miss -$0.06 -$0.04

Adjusted (2

EPS Analysts

)

Q1 Net $8.30

Income mln

Q1 $31 mln

Adjusted

Operatin

g Income

Q1 Capex $35 mln

Q1 Gross $119.10

Profit mln

Analyst Coverage

-   The current average analyst rating on the shares is “hold” and the breakdown of recommendations is no “strong buy” or “buy”, 3 “hold” and no “sell” or “strong sell”
-   Wall Street’s median 12-month price target for Rackspace Technology Inc is $2.00, about 11.9% below its May 6 closing price of $2.27 For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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