Rackspace Q4 revenue beats, public cloud up 6%

Rackspace Technology

26/02/2026 13:08

Overview

Hybrid cloud solutions firm's Q4 revenue beat analyst expectations despite a slight decline

Adjusted EPS for Q4 beat analyst expectations

Public Cloud revenue grew 6% yr/yr in Q4

Outlook

Rackspace expects FY 2026 revenue between $2,600 mln and $2,700 mln

Company anticipates FY 2026 private cloud revenue of $1,025 mln to $1,075 mln

Rackspace forecasts FY 2026 public cloud revenue of $1,575 mln to $1,625 mln

Result Drivers

PUBLIC CLOUD GROWTH - Public Cloud revenue increased by 6% yr/yr, driven by a shift towards higher-value enterprise engagements

PRIVATE CLOUD DECLINE - Private Cloud revenue decreased by 10% yr/yr, reflecting ongoing challenges in this segment

STRATEGIC SHIFT - CEO highlighted a strategic focus on enterprise AI and partnerships as a foundation for future growth

Company press release: ID:nGNX1KmXRr

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$682.80 mln
$672.37 mln (3 Analysts)
Q4 Adjusted EPS
Beat
-$0.01
-$0.03 (2 Analysts)
Q4 Net Income
-$32.70 mln
Q4 Adjusted Operating Income
Beat
$41 mln
$32.64 mln (2 Analysts)
Q4 Capex
$48 mln
Q4 Gross Profit
$120.40 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy."

Wall Street's median 12-month price target for Rackspace Technology Inc is $1.40, about 3.7% above its February 25 closing price of $1.35

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)