AI Stock Rackspace (RXT) Jumps After AMD Deal and Earnings Win

Rackspace Technology (NASDAQ: RXT) makes the Nasdaq top percentage gainer list today following first-quarter results and news of a deal with AMD.

The stock is currently trading at $4.26, up over 88% on a volume of over 156 million shares.

Rackspace and AMD today announced the signing of a Memorandum of Understanding (MOU) establishing a framework for a multiyear strategic partnership to create an enterprise AI cloud purpose-built for regulated enterprises and sovereign workloads where security, governance, and accountability are non-negotiable.

“As enterprises move AI out of the lab and into production environments, they're asking who they can trust to run it there,” said Gajen Kandiah, CEO, Rackspace Technology. “Governing AI infrastructure in regulated environments with defined accountability is not something you bolt on after the fact. It must be built in from the start. Rackspace and AMD are building exactly that and, in doing so, establishing a new category of enterprise AI infrastructure that the market has been asking for."

“Enterprise AI is quickly moving from experimentation to production, and that requires a compute foundation engineered for performance and efficiency at scale,” said Dan McNamara, senior vice president and general manager, Compute & Enterprise AI, AMD. “Our collaboration with Rackspace delivers AMD AI compute into managed, private, and governed environments so enterprises can deploy AI with the performance and flexibility their workloads demand.”

The AMD collaboration is intended to position Rackspace to complete its curated enterprise AI stack and introduce four integrated capabilities. Together, these capabilities are designed to form a complete, integrated stack from bare-metal compute and developer-ready inference tooling through a fully operated inference runtime with defined SLAs to a governed enterprise AI cloud. The aim is to give enterprises a single operator accountable for every layer, calibrated to the sovereignty, performance, and compliance requirements of each workload.

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

Full News:

https://ir.rackspace.com/news-releases/news-release-details/rackspace-technology-and-amd-sign-memorandum-understanding

https://ir.rackspace.com/news-releases/news-release-details/rackspace-technology-reports-first-quarter-2026-results