---
title: "Why Is Rackspace Technology Stock Gaining Monday?"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/285937629.md"
description: "Rackspace Technology (RXT) shares are experiencing a significant rally, gaining momentum after a 54% surge last Friday. Investors are optimistic due to the company's strategic shift towards artificial intelligence and better-than-expected quarterly sales of $678.1 million, surpassing estimates. A partnership with AMD aims to enhance AI infrastructure. Despite a 20% increase in adjusted operating profit, the company reported a loss of six cents per share, missing analyst expectations. Rackspace maintains its fiscal 2026 sales guidance of $2.6 billion to $2.7 billion. Shares rose 3.46% to $5.68 in premarket trading, nearing a 52-week high."
datetime: "2026-05-11T11:41:26.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/285937629.md)
  - [en](https://longbridge.com/en/news/285937629.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/285937629.md)
---

# Why Is Rackspace Technology Stock Gaining Monday?

**Rackspace Technology, Inc.** (NASDAQ:RXT) shares are extending a massive rally this Monday.

The momentum follows Friday session where the stock surged 54% hitting a new 52-week high. Investors are reacting to a strategic pivot toward artificial intelligence and stronger-than-expected quarterly sales.

## Rackspace Revenue Topples Street Estimates

Rackspace reported first-quarter sales of $678.100 million, representing a 2% year-over-year increase. This figure topped the Street estimate of $660.83 million. Growth was fueled by public cloud revenue, which climbed 7% to $443 million. Conversely, private cloud revenue fell 6% to $235 million.

## Strategic AMD AI Partnership

A major catalyst involves a new Memorandum of Understanding with **Advanced Micro Devices, Inc.** (NASDAQ:AMD). The companies aim to create managed enterprise AI infrastructure, according to the announcement. This collaboration integrates AMD’s Instinct GPUs and EPYC CPUs into Rackspace’s offerings.

## Profitability and Margin Shifts

Adjusted operating profit jumped 20% to $31 million. However, the company reported an adjusted loss of six cents per share. This missed the analyst consensus of a four-cent loss. Gross margins also contracted to 17.6% from 19.1% in the prior year.

## Rackspace 2026 Fiscal Outlook

Management reaffirmed its fiscal 2026 sales guidance of $2.6 billion to $2.7 billion. This outlook aligns with the Street estimate of $2.64 billion.

**RXT Price Action:** Rackspace Technology shares were up 3.46% at $5.68 during premarket trading on Monday. The stock is approaching its 52-week high of $6.00, according to Benzinga Pro data.

_Photo by Zakharchuk via Shutterstock_

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