Rackspace Technology, Inc. announced on November 9, 2026, that it has raised its full-year 2026 revenue outlook. The company reported financial results for the third quarter ended September 30, 2026, and updated its guidance for the fiscal year.
For the third quarter of 2026, total revenue was $609 million, a decrease of 9.3% on a reported basis compared to the same period in 2025. Revenue decreased by 9.2% on a constant currency basis. The company reported a loss from operations of $(13) million for the quarter, compared to a loss of $(34) million in the prior year. Net loss was $(54) million, or $(0.21) per diluted share, compared to a net loss of $(67) million, or $(0.28) per diluted share, in the prior year.
Revenue was broken down by segment. Private Cloud revenue was $260 million, an increase of 4.2% year-over-year. Public Cloud revenue was $349 million, a decrease of 17.2% year-over-year. Non-GAAP Operating Profit was $36 million for the quarter, an increase of 12% compared to the prior year.
As of September 30, 2026, Rackspace reported cash and cash equivalents of $108 million and total liquidity of $170 million, which includes its Revolving Credit Facility. Capital expenditures for the quarter were $104 million.
Regarding the updated guidance for fiscal year 2026, Rackspace raised its total revenue outlook by $35 million at the midpoint. The company is now guiding for total revenue between $2,510 million and $2,560 million. The company maintained its outlook for Non-GAAP Operating Profit, which is expected to be between $125 million and $135 million, and Adjusted EBITDA, expected to be between $285 million and $295 million.
The company also provided guidance for Non-GAAP Loss Per Share, which is expected to be between $(0.25) and $(0.30). The guidance for Non-GAAP Weighted Average Shares excludes any dilution from the ATM program.
