Key Highlights

  • Revenue fell 9.3% to $609 million in the third quarter of 2026, or 9.2% in constant currency.
  • Private Cloud Revenue increased 4.2% to $260 million, while Public Cloud revenue declined 17.2% to $349 million.
  • The net loss narrowed to $54 million from $67 million a year earlier.
  • The company reaffirmed its full-year profit outlook and modestly raised its revenue outlook.

Rackspace Technology, Inc. (NASDAQ:RXT) reported third-quarter 2026 revenue of $609 million, a decline of 9.3% from the prior-year quarter. The San Antonio-based company describes itself as a provider of enterprise AI infrastructure and solutions. The top-line decline was offset in part by a smaller loss from operations and net loss, and the company raised its revenue outlook modestly while reaffirming its profit expectations.

Segment Performance

Private Cloud revenue was $260 million, up 4.2% on both a reported and constant-currency basis from $250 million a year earlier. The growth in that segment was the only positive contribution to the quarter's revenue, and it showed that Demand for dedicated cloud environments has continued despite softer conditions elsewhere in the business.

Public Cloud revenue fell 17.2% to $349 million, down from $422 million in the third quarter of 2025. The decline accounted for most of the company's total revenue shortfall.

Losses and Profitability

The loss from operations narrowed to $13 million, compared with $34 million a year earlier. The net loss of $54 million compared with $67 million in the third quarter of 2025, a reduction of about 19%.

Kandiah, who is entering his second year as chief executive, described the company's move from establishing its strategy to translating go-to-market efforts and its existing capacity footprint into commitments and deployments.

Outlook Revisions

Rackspace reaffirmed its full-year profit outlook and modestly increased its revenue outlook.

Private Cloud rose modestly, while Public Cloud fell by more than a sixth, and the combined effect reduced total revenue by 9.3%.

Constant currency figures, which the company reports alongside reported results, remove the effect of Exchange Rate movements, and the two measures were close in the quarter.

Final Word

Revenue fell 9.3% to $609 million in the third quarter of 2026, or 9.2% in constant currency. Private Cloud revenue increased 4.2% to $260 million, while Public Cloud revenue declined 17.2% to $349 million.