RXT

EX-99.1

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EX-99.1 PRESS RELEASE DATED JULY 9, 2026

Document

Exhibit 99.1

Rackspace Technology Announces Plans to Accelerate Enterprise AI Growth Vector; Provides Preliminary 2Q26 Results and Updates FY26 Outlook

Investments and Partnerships to Fuel AI Growth in 2027 and Beyond

Palantir names Rackspace Technology as a Preferred Partner in Regulated and Sovereign Markets

SAN ANTONIO, July 09, 2026 — Rackspace Technology® (NASDAQ: RXT), a global enterprise AI infrastructure and solutions provider, today announced a strategic and financial update on its transition to becoming the operator of the full enterprise AI stack.

Strategy Update

Rackspace is becoming the operator of the full enterprise AI stack, serving a demand now visible across the market. Enterprises, particularly in regulated industries, are seeking control over their compute, their models, and their data, and assurance that the proprietary knowledge embedded in that data is not transferred outside their environments. Rackspace is model-agnostic by design and operates the governed layer that allows enterprises to use the best available models, whether open, closed, or their own, on private cloud where control matters and public cloud where elasticity matters, while policy, identity, and data boundaries remain under the enterprise’s control.

“The best-of-breed partnerships we have signed during 2026 – with AMD, Palantir, Rubrik, Uniphore and VMware by Broadcom – combined with the data center capacity and 25+ years of expertise that Rackspace brings to the table, represent a unique positional advantage for Rackspace. Today’s capital raise announcement is meaningful because it will enable us to expedite our AI Enterprise strategy and unlock a meaningful revenue and EBITDA growth vector for Rackspace, starting in 2027.” said Gajen Kandiah, Chief Executive Officer of Rackspace Technology.

“Apollo remains highly supportive of Rackspace’s strategy and believes the Company is taking the right steps to fund its next phase of growth. We are excited about the opportunity ahead and remain aligned with Rackspace as it builds a differentiated platform for Enterprise AI,” said Aaron Sobel, Partner at Apollo Global Management and a member of Rackspace Technology's Board of Directors.

Palantir Partnership Update

In a separate release today, Palantir and Rackspace announced a definitive agreement establishing an operating framework to deploy Palantir Foundry and AIP in mid-market, regulated and sovereign environments, naming Rackspace a preferred partner.

Since the companies’ initial February 2026 announcement, the partnership has built measurable momentum. Rackspace has scaled to approximately 400 Palantir certifications across sales, engineering, delivery, and operations, including a large global cohort of Palantir-certified forward deployed engineers (FDEs) to serve demand across healthcare, financial services, energy, and mid-market. The first joint deployment closed in less than 2 months with Rackspace FDEs deploying AI-enabled workflows on Palantir Foundry inside a U.S.-based solar tracking manufacturer to deliver a 94% reduction in their quote cycle time.

Both parties have considerable traction on this partnership and Rackspace views today’s announcement as a marker of the partnership’s early success.

Financial and Business Update

The enterprise AI deployment end market has attractive demand characteristics. However, enterprise AI growth and deployments require discipline because of the resource-constrained nature of the capacity- and supply-side.

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Rackspace believes the correct strategic and tactical response in this environment is to prioritize our resources and focus on the activities that we believe provide the best returns to Rackspace’s stakeholders.

The combination of our prioritization efforts, industry trends and current supply constraints results in a reduction of $150 million in our revenue expectations and $20 million in EBITDA. The details are illustrated in the table below.

$ in MillionsPrior FY26 OutlookNew FY26 OutlookReason for Change

LowMidpointHighLowMidpointHigh

Private Cloud1,025 1,050 1,075 1,000 1,025 1,050 •Lowered by $25 million.

•Exiting colocation and basic hosting revenues, reserving capacity for Enterprise AI.

•Supply timing and geopolitical factors compressing near-term delivery.

Rev year/year %4%6%9%1%4%6%

Public Cloud1,575 1,600 1,625 1,450 1,475 1,500 •Lowered by $125 million.

•Exiting low-margin resale as hyperscalers continue moving customers to direct contracts.

Rev year/year %(7)%(6)%(4)%(15)%(13)%(12)%

Revenue2,600 2,650 2,700 2,450 2,500 2,550

Rev year/year %(3)%(1)%1%(9)%(7)%(5)%

Adjusted EBITDA305 310 315 285 290 295 •Lower near-term margins reflect upfront growth investment and restructuring, ahead of AI revenue ramping.

Adj. EBITDA margin %12%12%12%12%12%12%

Rackspace Technology anticipates the following preliminary financial results for the second quarter of

EX-99.1

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EX-99.1

Document

Exhibit 99.1

Rackspace Technology Reports First Quarter 2026 Results

•Revenue of $678 million in the First Quarter, up 2% Year-over-Year

•Private Cloud Revenue was $235 million, down 6% Year-over-Year

•Public Cloud Revenue was $443 million, up 7% Year-over-Year

•First Quarter 2026 Cash Flow From Operating Activities was $5 million; Cash Flow From Operating Activities was $144 million on a Trailing-Twelve-Month Basis

•Rackspace Technology and AMD sign Memorandum of Understanding to establish a new category of governed Enterprise AI Infrastructure

SAN ANTONIO, May 7, 2026 – Rackspace Technology, Inc. (Nasdaq: RXT), a leading end-to-end hybrid cloud and AI solutions company, today announced results for its first quarter ended March 31, 2026.

Gajen Kandiah, Chief Executive Officer, stated, “The market is moving in the direction we anticipated, with regulated enterprises making deliberate choices about where their AI runs, who operates it, and who is accountable for outcomes.”

Mr. Kandiah added, “Our first quarter results reflect a strategy that is delivering, and today I am pleased to announce a Memorandum of Understanding with AMD to establish governed enterprise AI infrastructure as a new market category. It is a category Rackspace is built to lead.”

First Quarter 2026 Results

Revenue was $678 million in the first quarter of 2026, an increase of 2% on a reported basis and 1% on a constant currency (1) basis compared to revenue of $665 million in the first quarter of 2025.

Private Cloud revenue was $235 million in the first quarter of 2026, a decrease of 6% on a reported basis and 8% on a constant currency basis compared to revenue of $250 million in the first quarter of 2025.

Public Cloud revenue was $443 million in the first quarter of 2026, an increase of 7% on a reported basis and 6% on a constant currency basis compared to revenue of $416 million in the first quarter of 2025.

Loss from operations was $(18) million in the first quarter of 2026, compared to loss from operations of $(38) million in the first quarter of 2025.

Net income was $8 million in the first quarter of 2026, compared to net loss of $(72) million in the first quarter of 2025.

Net earnings per diluted share was $0.03 in the first quarter of 2026, compared to net loss per diluted share of $(0.31) in the first quarter of 2025.

Non-GAAP Operating Profit was $31 million in the first quarter of 2026, an increase of 20% compared to $26 million in the first quarter of 2025.

Non-GAAP Loss Per Share was $(0.06) in both the first quarter of 2026 and 2025.

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Capital expenditures were $35 million in the first quarter of 2026, compared to $27 million in the first quarter of 2025.

As of March 31, 2026, we had cash and cash equivalents of $94 million and total liquidity of $295 million, including our Revolving Credit Facility.

(1)Constant currency revenue and certain other measures in this release are non-GAAP financial measures. See “Non-GAAP Financial Measures” and the tables that accompany this release for definitions and reconciliations of these non-GAAP measures to the most comparable GAAP measures.

Financial Outlook

Rackspace Technology is providing guidance as follows:

FY 2026 Guidance

Total Revenue$2,600 - $2,700 million

Private Cloud Revenue $1,025 - $1,075 million

Public Cloud Revenue $1,575 - $1,625 million

Non-GAAP Operating Profit$160 - $170 million

Adjusted EBITDA $305 - $315 million

Non-GAAP Loss Per Share($0.15) - ($0.20)

Non-GAAP Other Income (Expense)($220) – ($230) million

Non-GAAP Tax Expense Rate26%

Non-GAAP Weighted Average Shares250 - 260 million

Information about Rackspace Technology’s use of non-GAAP financial measures is provided below under “Non-GAAP Financial Measures”.

Definitions of non-GAAP financial measures and the reconciliations to the most directly comparable measures in accordance with generally accepted accounting principles in the United States (“GAAP”) are provided in subsequent sections of this press release narrative and supplemental schedules. Rackspace Technology has not reconciled Non-GAAP Operating Profit, Adjusted EBITDA, Non-GAAP Loss Per Share, Non-GAAP Other Income (Expense) or Non-GAAP Tax Expense Rate guidance to the most directly comparable GAAP measure because it does not provide guidance on GAAP net income (loss) or the reconciling items between these Non-GAAP measures and GAAP net income (loss) as a result of the uncertainty regarding, and the potential variability of, certain of these items, such as share-based compensation expense. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort. With respect to Non-GAAP Operating Profit, Adjusted EBITDA, Non-GAAP Loss Per Share, Non-GAAP Other Income (Expense) and Non-GAAP Tax Expense Rate guidance, adjustments in future periods are generally expected to be similar to the kind

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 26, 2026

RACKSPACE TECHNOLOGY, INC.

(Exact name of registrant as specified in its charter)

Delaware 001-3942081-3369925

(State of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.)

19122 US Highway 281N, Suite 128 San Antonio, Texas 78258 (Address of principal executive offices, including zip code)

1-800-961-4454 (Registrant's telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered

Common stock, par value $0.01 per shareRXTThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02.    Results of Operations and Financial Condition.

On February 26, 2026, Rackspace Technology, Inc issued a press release announcing its financial results for the fiscal quarter and year ended December 31, 2025. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.

The information contained in this report, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filings, unless expressly incorporated by specific reference in such filing..

Item 9.01.    Financial Statements and Exhibits.

(d) Exhibits.

Exhibit NumberExhibit Description 99.1Press Release dated February 26, 2026.

104Cover Page Interactive Data File (formatted as Inline XBRL)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

RACKSPACE TECHNOLOGY, INC.

Date:February 26, 2026By:/s/ Mark Marino Mark Marino Chief Financial Officer

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