Rackspace Technology Q2 Earnings Call Highlights

1 hour ago 4

MarketBeat

Tue, August 11, 2026 astatine 10:05 AM CDT 7 min read

Key Points

Interested successful Rackspace Technology, Inc.? Here are 5 stocks we similar better.
Rackspace reported Q2 gross of $670 million, up 1% twelvemonth implicit year, portion maintaining 2026 guidance and forecasting affirmative full-year escaped currency travel of $50 cardinal to $70 million.
The institution is expanding its endeavor AI infrastructure strategy, including an AMD-backed program to deploy 30 megawatts of compute capableness by 2028. Rackspace expects the inaugural to make $450 cardinal to $600 cardinal successful yearly gross astatine afloat capacity, with endeavor AI EBITDA margins supra 50%.
Private Cloud gross roseate 5% to $263 million, helped by contract-related gross timing, portion Public Cloud gross fell 2% to $407 million. Despite the decline, Public Cloud margins improved arsenic Rackspace shifted toward higher-value AI, information and managed-services work.

Rackspace's AI Land Grab: Plugging Into the Next Compute Boom

Rackspace Technology (NASDAQ:RXT) reported second-quarter gross of $670 million, up 1% from a twelvemonth earlier, arsenic the institution outlined an expanded endeavor AI infrastructure strategy built astir managed compute, inference and sovereign AI deployments.

Chief Executive Officer Gajen Kandiah said the institution aims to go an "accountable supplier and relation of the afloat endeavor AI stack from halfway to unreality to edge," emphasizing governance, security, sovereignty, resilience and operational accountability for endeavor customers.

→ SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat

Palantir Just Opened a New DoD Door—What Changes Now?

The company's strategy includes a Managed Compute and Inference Platform supported by partners including AMD, Dell, Palantir and Uniphore. Rackspace said it sees request for AI deployments that tin spot workloads crossed unreality and borderline environments based connected latency, cost, information and criticality requirements.

AMD deployment program targets 30 megawatts

Rackspace said it entered a definitive statement with AMD to deploy an archetypal 30-megawatt footprint of AMD-based compute capableness crossed Rackspace information centers successful phases from precocious 2026 done 2028. The planned architecture volition usage AMD Instinct GPUs and EPYC CPUs.

→ Take-Two's Q1 Results Leave GTA 6 Bulls Stuck successful the Fog of War

The 10 Top-Rated Stocks by Wall Street Analysts successful August 2021

The archetypal deployment, expected to beryllium astir 2 MW, is targeted for completion by the extremity of 2026 and is expected to necessitate astir $75 cardinal of superior expenditures. Rackspace's extremity is to scope cumulative capableness of 15 MW by the extremity of 2027 and 30 MW by the extremity of 2028.

Read Entire Article