Rackspace Technology, Inc. (NASDAQ:RXT) stock is soaring on Thursday following a significant announcement regarding a strategic partnership with Advanced Micro Devices, Inc. (NASDAQ:AMD), and the release of its first-quarter results.
Rackspace Technology reported a first-quarter adjusted loss per share of six cents, missing the analyst consensus estimate of a four-cent loss. Quarterly sales of $678.100 million (+2% year over year) outpaced the Street view of $660.83 million.
Private cloud revenue declined 6% year over year to $235 million, while public cloud revenue increased 7% to $443 million.
Adjusted operating profit was $31 million in the first quarter, an increase of 20%.
Gross profit fell 6.1% year over year to $119.1 million, while margins contracted to 17.6% from 19.1%.
Rackspace exited the quarter with cash and equivalents worth $94 million, down from $105.8 million in the last quarter.
Outlook
Rackspace Technology reaffirmed its fiscal 2026 adjusted loss guidance of 20 cents to 15 cents per share, compared with the analyst estimate for a loss of 9 cents per share.
The …
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