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Rackspace reported Q2 revenue of $670 million, up 1% year over year, while maintaining 2026 guidance and forecasting positive full-year free cash flow of $50 million to $70 million.
The company is expanding its enterprise AI infrastructure strategy, including an AMD-backed plan to deploy 30 megawatts of compute capacity by 2028. Rackspace expects the initiative to generate $450 million to $600 million in annual revenue at full capacity, with enterprise AI EBITDA margins above 50%.
Private Cloud revenue rose 5% to $263 million, helped by contract-related revenue timing, while Public Cloud revenue fell 2% to $407 million. Despite the decline, Public Cloud margins improved as Rackspace shifted toward higher-value AI, data and managed-services work.
Rackspace's AI Land Grab: Plugging Into the Next Compute Boom
#cloud #enterprise #capacity
Rackspace reported Q2 revenue of $670 million, up 1% year over year, while maintaining 2026 guidance and forecasting positive full-year free cash flow of $50 million to $70 million.
The company is expanding its enterprise AI infrastructure strategy, including an AMD-backed plan to deploy 30 megawatts of compute capacity by 2028. Rackspace expects the initiative to generate $450 million to $600 million in annual revenue at full capacity, with enterprise AI EBITDA margins above 50%.
Private Cloud revenue rose 5% to $263 million, helped by contract-related revenue timing, while Public Cloud revenue fell 2% to $407 million. Despite the decline, Public Cloud margins improved as Rackspace shifted toward higher-value AI, data and managed-services work.
Rackspace's AI Land Grab: Plugging Into the Next Compute Boom
#cloud #enterprise #capacity
1 month ago
