Rackspace Technology Q3 revenue beats on strength in private cloud business
RXT•Rackspace Technology’s third-quarter revenue fell 9% year over year to $609.1 million but beat analyst expectations, while its adjusted loss per share of $0.06 was also better than expected. The company raised its 2026 revenue outlook by $35 million at the midpoint to $2.51 billion-$2.56 billion, keeping profit guidance unchanged.
1. Quarterly results
Third-quarter revenue was $609.1 million, above the $573.95 million analyst estimate, despite falling 9% year over year. Adjusted loss per share was $0.06, compared with an expected loss of $0.08; net loss was $53.5 million.
2. Cloud performance
Private Cloud revenue rose 4% year over year, partially offsetting a 17% decline in Public Cloud revenue. Adjusted operating income was $36 million, above the $32.53 million estimate.
3. 2026 outlook
Rackspace raised its full-year 2026 revenue outlook by $35 million at the midpoint to $2.51 billion-$2.56 billion. Its outlook for Non-GAAP Operating Profit and Adjusted EBITDA was unchanged.
