Rackspace Technology Reports Q3 Revenue Decline, Raises 2026 Outlook Midpoint
Third-quarter revenue fell 9.3% year over year to $609 million. Private Cloud revenue rose 4.2% to $260 million, while Public Cloud revenue declined 17.2% to $349 million. Operating loss narrowed to $13 million from $34 million, and non-GAAP operating profit rose 12.2% to $36 million. The company raised the midpoint of its 2026 revenue guidance by $35 million and maintained its profit and Adjusted EBITDA outlook.
Rackspace Technology, Inc. reported third-quarter 2026 revenue of $609 million, representing a 9.3% year-over-year decline. The company's Private Cloud segment grew 4.2% to $260 million, while Public Cloud revenue fell 17.2% to $349 million. Operating loss narrowed to $13 million from $34 million in the same period last year, and Non-GAAP Operating Profit increased 12.2% to $36 million.
Management raised the midpoint of its full-year 2026 revenue guidance by $35 million while maintaining its profit and Adjusted EBITDA outlook. CEO Gajen Kandiah noted that the company is transitioning from strategy establishment to executing its enterprise AI infrastructure model and converting capacity into customer commitments.