• Rackspace Technology (RXT) shares are down 11.6% to $5.82 today, responding to a strategic and financial update from the company.
  • Rackspace lowered its fiscal year 2026 revenue and adjusted EBITDA outlook, and provided preliminary Q2 2026 results.
  • Separately, the company announced a definitive agreement with Palantir Technologies to launch an AI operating framework for regulated enterprises, building on recent AI initiatives.
  • The decline follows a period of significant AI-driven gains for the stock.