NASDAQ$RXT

Rackspace Technology Inc · Q1 2026 earnings

Q1 2026 earnings · · Investor relations

Briefing

Rackspace Technology reported Q1 2026 revenue of $678.1M with net income of $8.3M and diluted EPS of $0.03.

For the quarter ended March 31, 2026, Rackspace revenue was $678.1 million versus $665.4 million. Net income was $8.3 million compared with a loss of $71.5 million a year ago, aided by a $55.8 million gain on debt extinguishment. Diluted EPS was $0.03 versus a loss of $0.31. Loss from operations narrowed to $17.8 million.

  • Revenue of $678.1M (+2% YoY).
  • Net income of $8.3M after debt gain.
  • Diluted EPS of $0.03.
  • Cloud and managed hosting transition ongoing.
  • Adjusted EBITDA trends discussed in MD&A.

Headline financials

Total Revenue

$678M

Previous: $665M+1.9%
EPS (adj)

$0.03

Previous: -$2.91+101.0%
Capital Expenditures

-$14.5M

Previous: -$8.3M-74.7%
Net Income

$8.3M

Previous: -$71.5M+111.6%
Operating Income

-$17.8M

Previous: -$38.4M+53.6%
Gross Profit

$119M

Previous: $127M-6.1%

Revenue & EPS history

Rackspace · Revenue · Quarterly

$678M

Q1 2026+1.9%vs Q1 2025
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

Turnaround story; annual guidance on calls. 10-Q discusses customer churn and cloud mix.

Tailwinds

  • Returned to GAAP profitability.
  • Debt restructuring reduced interest burden.

Headwinds

  • Core operations still loss-making before gains.
  • Competitive cloud pricing pressure.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2026

Historical avgQ1 2026

+2.3%

Avg return

Earnings day

+1.8%

Avg return

5 days after

-6.8%

Avg return

30 days after

48%

12 / 25 earnings

Positive

+67.4%

Q4 2025

Best reaction

-20.6%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+55.5%+63.2%+33.1%
Q4 2025+67.4%+82.2%-22.2%
Q3 2025-15.3%-18.5%-30.1%
Q1 2025-13.4%-11.1%-18.1%
Q4 2024+0.7%-9.0%-35.1%
Q3 2024+8.6%-13.3%-10.4%
Q2 2024+6.1%+13.2%-0.5%
Q1 2024+5.9%+11.3%+17.7%
Q4 2023-14.8%+14.9%+13.0%
Q3 2023-1.8%-10.0%+7.9%
Q2 2023+13.6%+6.6%+0.9%
Q1 2023-14.0%-18.7%+16.2%
Q4 2022-2.6%-14.2%-35.8%
Q3 2022+22.1%+17.5%-33.4%
Q2 2022-17.6%-18.2%-29.7%
Q1 2022-10.9%+4.0%-13.3%
Q4 2021-20.6%-6.5%-7.3%
Q3 2021+12.5%+3.4%-9.4%
Q2 2021-14.5%-17.0%-12.7%
Q1 2021-19.9%-18.0%-10.8%
Q4 2020-14.8%-14.0%-1.8%
Q3 2020-1.7%-7.2%+13.1%
Q4 2019+8.6%+1.4%-0.2%
Q2 2019+8.6%+1.4%-0.2%
Q2 2020+8.6%+1.4%-0.2%
Q1 2020
Q3 2019
Q1 2019

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