Rackspace Technology Lowers FY26 Revenue Guidance From $2.60B - $2.70B To $2.45B - $2.55B; Reports Q2 Preliminary Revenue Range $641M - $649

Rackspace Technology ® (NASDAQ: RXT ), a global enterprise AI infrastructure and solutions provider, today announced a strategic and financial update on its transition to becoming the operator of the full enterprise AI stack. $ in Millions Prior FY26 Outlook New FY26 Outlook Reason for Change Low Midpoint High Low Midpoint High Private Cloud 1,025 1,050 1,075 1,000 1,025 1,050 Lowered by $25 million.

Exiting colocation and basic hosting revenues, reserving capacity for Enterprise AI.

Supply timing and geopolitical factors compressing near-term delivery.

Rev year/year % 4% 6% 9% 1% 4% 6% Public Cloud 1,575 1,600 1,625 1,450 1,475 1,500 Lowered by $125 million.

Exiting low-margin resale as hyperscalers continue moving customers to direct contracts.

Rev year/year % (7)% (6)% (4)% (15)% (13)% (12)% Revenue 2,600 2,650 2,700 2,450 2,500 2,550 Rev year/year % (3)% (1)% 1% (9)% (7)% (5)% Adjusted EBITDA 305 310 315 285 290 295 Lower near-term margins reflect upfront growth investment and restructuring, ahead of AI revenue ramping.

Rackspace Technology anticipates the following preliminary financial results for the second quarter of 2026: Revenue is expected to be in the range of $641 to $649 million, including Private Cloud revenue between $242 to $246 million and Public Cloud revenue between $399 to $403 million.

GAAP Net Loss is expected to be in the range of $(91) to $(62) million, and GAAP net loss per diluted share is expected to be in the range of $(0.36) to $(0.25) GAAP Loss from Operations is expected to be in the range of $(53) to $(33) million.

Non-GAAP Operating Profit is expected to be in the range of $19 to $23 million.

Non-GAAP Loss Per Share is expected to be $(0.11) to $(0.08).

Non-GAAP Adjusted EBITDA is expected to be between $58 to $62 million.