Rackspace Technology (RXT) Q2 2026 Earnings
How Did RXT Stock React to Q2 2026 Earnings?
S&P 500 over the same 30 days: −1.97%.
Did RXT Beat Earnings? Q2 2026 Results
Yes. Rackspace Technology reported Q2 2026 earnings of $-0.08 a share on Aug 10, 2026, beating the $-0.09 consensus estimate by 11.2%. Revenue was $670.1M against a $646.0M estimate.
Rackspace Technology posted a better-than-feared second quarter for fiscal 2026, beating both top and bottom-line expectations even as underlying pressures mounted. Revenue of $670.10 million edged up 0.6% year-over-year and cleared the $646.00 million consensus by 3.73%, while an adjusted loss per share of $0.08 came in ahead of the $0.09 estimate by 11.21%. The headline beats, however, masked meaningful margin erosion: gross margin compressed to 17.1% from 19.4% a year ago as cost of revenue climbed 3.4%, and GAAP operating loss widened to $33.20 million. The single biggest earnings-story headwind was a 60.6% surge in interest expense to $34.20 million, which deepened the net loss to $67.50 million. Adding further complexity, multiple securities fraud class action lawsuits have emerged alleging the company misled investors about the financial impact of its AI pivot. Looking ahead, Rackspace guided for full-year 2026 revenue of $2.45 billion to $2.55 billion, with Adjusted EBITDA of $285.00 million to $295.00 million.
- Private Cloud revenue grew 5.5% YoY, driving overall revenue growth
- Public Cloud revenue declined 2.3% YoY, partially offsetting gains
- Non-GAAP Operating Profit was essentially flat at $27.4 million
- Adjusted EBITDA increased to $65.9 million from $64.4 million
- Interest expense increased 60.6% YoY to $34.2 million
- Restructuring and transformation expenses rose to $18.4 million from $4.4 million
“Enterprises in regulated industries are moving AI from experimentation into production, and they are choosing partners who can be accountable for it.”
Rackspace Technology CEO, on the earnings call
What Is Rackspace Technology's Outlook?
Rackspace provided FY 2026 guidance: Total Revenue of $2,450–$2,550 million (Private Cloud Revenue $1,000–$1,050 million; Public Cloud Revenue $1,450–$1,500 million), Non-GAAP Operating Profit of $125–$135 million, Adjusted EBITDA of $285–$295 million, Non-GAAP Loss Per Share of ($0.25)–($0.30), Non-GAAP Other Income (Expense) of ($220)–($230) million, Non-GAAP Tax Expense Rate of 26%, and Non-GAAP Weighted Average Shares of 250–260 million (excluding any dilution from the ATM program).
RXT YoY Financials
| Metric | Q2 2026 | Q2 2025 | Year over year |
|---|---|---|---|
| Revenue | $670.1M | $666.3M | +0.6% |
| Gross Profit | $114.8M | $129.2M | −11.2% |
| Operating Income | −$33.2M | −$49.0M | −32.3% |
| Net Income | −$67.5M | −$88.6M | −23.9% |
RXT Revenue by Segment
When Does Rackspace Technology Report Next?
Figures from SEC filings and company reports. Not investment advice.