Rackspace Technology is trading 17.2% down now at $4.90 after issuing a strategic and financial update that reduced its fiscal 2026 revenue and adjusted EBITDA outlook.
- The company is prioritizing enterprise AI growth, which includes exiting certain colocation and hosting revenues and accepting lower near-term margins due to upfront AI investments and restructuring.
- Preliminary Q2 2026 results were released alongside the updated guidance, reflecting the company's shift in long-term financial priorities.