AMD
RXTThe headline numbers: not a fireworks show, but not a faceplant either
Rackspace Technology opened 2026 with revenue of $678 million, up 2% year over year. That’s not exactly the kind of growth that makes traders spill coffee on their keyboards, but it does suggest the business is still nudging forward instead of skating backward.
The split underneath the top line tells the real story:
- private cloud revenue came in at $235 million, down 6%
- public cloud revenue hit $443 million, up 7%
So if you’re trying to read the tea leaves, the market is still rewarding the cloud parts that sound more like the future and less like your company’s old IT closet.
The AMD deal is the spicy part
Buried in the release was a memorandum of understanding with AMD to build a new category of governed enterprise AI infrastructure. Translation: Rackspace wants to be the adult in the room for companies that like AI, but also like compliance, control, and not getting yelled at by legal.
That could matter because regulated enterprises are exactly the kind of customers that can’t just toss sensitive workloads into the nearest chatbot cloud and pray. If Rackspace can turn this into a real commercial offering, it could give the company a more differentiated AI story than the usual “we also do AI now” corporate confetti.
Why investors should care
Cash flow from operating activities was just $5 million in the quarter, though the trailing-twelve-month figure was $144 million. That keeps the focus on execution: can Rackspace keep the revenue moving, protect margins, and make the AI partnership more than a PowerPoint handshake?
Big picture: Rackspace isn’t suddenly sprinting, but it is at least showing enough life that the AI partnership could become a meaningful second act if management can actually ship it.