Rackspace Technology cuts 2026 revenue outlook by $150 million, reports Q2 loss
Rackspace Technology cut its fiscal 2026 revenue outlook by $150 million to a $2.45 billion to $2.55 billion range and its Adjusted EBITDA outlook by $20 million to $285 million to $295 million, citing resource prioritization, supply constraints and exits from lower-margin Public Cloud resale. The company also reported preliminary second-quarter 2026 results showing a GAAP net loss of $62 million to $91 million, and set up a $250 million at-the-market stock offering and a receivables facility extension, which together give it additional funding capacity.
Key points
- Preliminary Q2 2026 GAAP net loss of $(91) million to $(62) million, or $(0.36) to $(0.25) per diluted share; revenue expected at $641 million to $649 million
- FY26 revenue outlook lowered to $2.45 billion to $2.55 billion from $2.6 billion to $2.7 billion; Public Cloud outlook cut by $125 million and Private Cloud by $25 million
- FY26 Adjusted EBITDA outlook lowered to $285 million to $295 million from $305 million to $315 million
- Equity Distribution Agreement with Goldman Sachs & Co. LLC for up to $250 million of common stock; receivables facility maturity extended to July 2, 2029 with a limit increase of up to $50 million to $350 million
The filing
Written by AI on Nov 9, 2026, 11:43 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on July 09, 2026.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.