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(Investorideas.com
Newswire) a trusted platform for investing ideas including AI and tech
stocks issues a news and trading alert for Rackspace Technology
(NASDAQ: RXT), a global enterprise AI infrastructure and solutions
provider.
Rackspace Technology (NASDAQ: RXT) makes the Nasdaq top percentage
gainer list today following first-quarter results and news of a deal
with AMD.
The stock is currently trading at $4.26, up over 88% on a volume
of over 156 million shares.
Rackspace and AMD today announced the signing of a Memorandum of
Understanding (MOU) establishing a framework for a multiyear
strategic partnership to create an enterprise AI cloud purpose-built
for regulated enterprises and sovereign workloads where security,
governance, and accountability are non-negotiable.
“As enterprises move AI out of the lab and into production
environments, they’re asking who they can trust to run it
there,” said Gajen Kandiah, CEO, Rackspace Technology.
“Governing AI infrastructure in regulated environments with
defined accountability is not something you bolt on after the
fact. It must be built in from the start. Rackspace and AMD are
building exactly that and, in doing so, establishing a new
category of enterprise AI infrastructure that the market has been
asking for.”
“Enterprise AI is quickly moving from experimentation to
production, and that requires a compute foundation engineered for
performance and efficiency at scale,” said Dan McNamara,
senior vice president and general manager, Compute &
Enterprise AI, AMD. “Our collaboration with Rackspace
delivers AMD AI compute into managed, private, and governed
environments so enterprises can deploy AI with the performance and
flexibility their workloads demand.”
The AMD collaboration is intended to position Rackspace to complete
its curated enterprise AI stack and introduce four integrated
capabilities. Together, these capabilities are designed to form a
complete, integrated stack from bare-metal compute and
developer-ready inference tooling through a fully operated inference
runtime with defined SLAs to a governed enterprise AI cloud. The aim
is to give enterprises a single operator accountable for every
layer, calibrated to the sovereignty, performance, and compliance
requirements of each workload.
First Quarter 2026 Results
-
Revenue was $678 million in the first quarter of 2026, an increase
of 2% on a reported basis and 1% on a constant currency (1) basis
compared to revenue of $665 million in the first quarter of
2025. -
Private Cloud revenue was $235 million in the first quarter of
2026, a decrease of 6% on a reported basis and 8% on a constant
currency basis compared to revenue of $250 million in the first
quarter of 2025. -
Public Cloud revenue was $443 million in the first quarter of
2026, an increase of 7% on a reported basis and 6% on a constant
currency basis compared to revenue of $416 million in the first
quarter of 2025. -
Loss from operations was $(18) million in the first quarter of
2026, compared to loss from operations of $(38) million in the
first quarter of 2025. -
Net income was $8 million in the first quarter of 2026, compared
to a net loss of $(72) million in the first quarter of 2025. -
Net earnings per diluted share was $0.03 in the first quarter of
2026, compared to net loss per diluted share of $(0.31) in the
first quarter of 2025. -
Non-GAAP operating profit was $31 million in the first quarter of
2026, an increase of 20% compared to $26 million in the first
quarter of 2025. -
Non-GAAP loss per share was $(0.06) in both the first quarter of
2026 and 2025. -
Capital expenditures were $35 million in the first quarter of
2026, compared to $27 million in the first quarter of 2025.
Full News:
https://ir.rackspace.com/news-releases/news-release-details/rackspace-technology-and-amd-sign-memorandum-understanding
https://ir.rackspace.com/news-releases/news-release-details/rackspace-technology-reports-first-quarter-2026-results
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