Rackspace cuts FY26 revenue view to $2.45B-$2.55B from $2.6B-$2.7B
Consensus $2.65B. Cuts FY26 revenue view to $285M-$295M from $305M-$315M. Lower near-term adjusted EBITDA margins reflect upfront growth investment and restructuring, ahead of AI revenue ramping. "The best-of-breed partnerships we have signed during 2026 - with AMD, Palantir, Rubrik, Uniphore and VMware by Broadcom - combined with the data center capacity and 25+ years of expertise that Rackspace brings to the table, represent a unique positional advantage for Rackspace. Today's capital raise announcement is meaningful because it will enable us to expedite our AI Enterprise strategy and unlock a meaningful revenue and EBITDA growth vector for Rackspace, starting in 2027," said Gajen Kandiah, CEO of Rackspace Technology. "Apollo remains highly supportive of Rackspace's strategy and believes the Company is taking the right steps to fund its next phase of growth. We are excited about the opportunity ahead and remain aligned with Rackspace as it builds a differentiated platform for Enterprise AI," said Aaron Sobel, partner at Apollo Global and a member of Rackspace Technology's board of directors.
Consensus $2.65B.
Cuts FY26 revenue view to $285M-$295M from $305M-$315M.
Lower near-term adjusted EBITDA margins reflect upfront growth investment and restructuring, ahead of AI revenue ramping. "The best-of-breed partnerships we have signed during 2026 - with AMD, Palantir, Rubrik, Uniphore and VMware by Broadcom - combined with the data center capacity and 25+ years of expertise that Rackspace brings to the table, represent a unique positional advantage for Rackspace.
Today's capital raise announcement is meaningful because it will enable us to expedite our AI Enterprise strategy and unlock a meaningful revenue and EBITDA growth vector for Rackspace, starting in 2027," said Gajen Kandiah, CEO of Rackspace Technology. "Apollo remains highly supportive of Rackspace's strategy and believes the Company is taking the right steps to fund its next phase of growth.
We are excited about the opportunity ahead and remain aligned with Rackspace as it builds a differentiated platform for Enterprise AI," said Aaron Sobel, partner at Apollo Global and a member of Rackspace Technology's board of directors.