Overview
- Rackspace shares spiked more than 60% on Thursday, with trading volume around 44 million shares in a surge tied to its quarterly update and an AMD announcement.
- Q1 revenue reached $678.1 million and topped forecasts, though adjusted EPS missed at negative $0.06 and the $8.3 million profit leaned on a $55.8 million gain from retiring debt.
- Rackspace and AMD signed a preliminary, non-binding memo to explore a managed Enterprise AI Cloud that would use AMD Instinct GPUs and EPYC CPUs under Rackspace’s end-to-end operation.
- The companies disclosed no financial terms or launch timeline for the proposed platform, which targets banks, healthcare groups, and other regulated users that require strict governance.
- Management reaffirmed 2026 guidance of $2.6–$2.7 billion in revenue and $160–$170 million in non‑GAAP operating profit, while most analysts still rate the stock Hold with average targets near $2.17.