Rackspace Technology, Inc.: Beat — EPS -$0.06, Revenue $609.1M
Earnings BeatQ3 2026 · After-market
Did Rackspace Technology, Inc. (RXT) beat earnings today?
Yes, Rackspace Technology, Inc. (RXT) beat Wall Street analyst expectations for Q3 2026, reporting higher-than-expected EPS and higher-than-expected revenue.
Earnings Per Share+25.00% surprise
-$0.06Actual
Expected: -$0.08
vs. year ago -20.0%
Total Revenue+6.12% surprise
$609.1MActual
Expected: $573.95M
vs. year ago -9.3%
Released Nov 09 · 4:21 PM ET
Earning Report
| Metric | Q3 2026 | Q3 2025 | YoY Change % |
|---|---|---|---|
| Revenue | $609.10M | $671.20M | -9.3 |
| Revenue detail — reported lines | |||
| └─Public Cloud | $349.10M | $421.60M | -17.2 |
| └─Private Cloud | $260.00M | $249.60M | +4.2 |
| Net Loss | $(53.5)M | $(67.1)M | -20.3 |
| Net loss per share | $(0.21) | $(0.28) | - |
| Non-GAAP Loss Per Share | $(0.06) | $(0.05) | -20.0 |
Financial Outlook / Guidance
| Metric | FY 2026 Outlook |
|---|---|
| Guidance | |
| Total Revenue | $2,510-$2,560M |
| Private Cloud Revenue | $995-$1,015M |
| Public Cloud Revenue | $1,515-$1,545M |
| Non-GAAP Operating Profit | $125-$135M |
| Adjusted EBITDA | $285-$295M |
| Non-GAAP Loss Per Share | ($0.25)-($0.30) |
| Non-GAAP Other Income (Expense) | ($220)-($230)M |
| Non-GAAP Weighted Average Shares | 265-275M |
FY 2026 Outlook
- Total Revenue
- Guidance$2,510-$2,560M
- Private Cloud Revenue
- Guidance$995-$1,015M
- Public Cloud Revenue
- Guidance$1,515-$1,545M
- Non-GAAP Operating Profit
- Guidance$125-$135M
- Adjusted EBITDA
- Guidance$285-$295M
- Non-GAAP Loss Per Share
- Guidance($0.25)-($0.30)
- Non-GAAP Other Income (Expense)
- Guidance($220)-($230)M
- Non-GAAP Weighted Average Shares
- Guidance265-275M
Business Highlights
- ➤Continued execution of the business and financial plan.
- ➤Advanced strategy to operate the full enterprise AI stack.
- ➤Translated go-to-market efforts into further customer commitments.
- ➤Leveraged the existing capacity footprint for rapid deployments.
- ➤Focused on high-margin operations.
- ➤Operates from governed private cloud through AI inference and agents in production.
- ➤Uses an Outcomes-as-a-Service model built on secure infrastructure and data foundations.
- ➤Targets regulated and mission-critical industries requiring governance, sovereignty, and uptime.
Management Commentary
Gajen Kandiah, Chief Executive Officer
“This quarter we continued to execute on our business and financial plan and reaffirm our profit outlook for the full year while modestly increasing our revenue outlook.”
Gajen Kandiah, Chief Executive Officer
“As I enter my second year as CEO, we have moved from establishing our strategy to become the operator of the full enterprise AI stack and creating the framework to execute it, to now translating our go-to-market efforts and large existing capacity footprint into further commitments, rapid deployments and high margin operations.”