Overview
- Following Thursday's earnings release and AMD memorandum of understanding, Rackspace shares jumped more than 60% and touched an intraday high of $4.12.
- Quarterly revenue rose 1.9% to $678.1 million and topped estimates, while adjusted EPS missed at minus 6 cents and gross margin fell to 18.3%.
- Net income turned positive at $8.3 million, helped by a $55.8 million gain from extinguishing debt, and adjusted EBITDA reached $71.2 million.
- The MOU describes a fully managed stack built on AMD Instinct GPUs and EPYC CPUs for sovereign and regulated workloads, which differs from pay‑by‑the‑hour GPU rental models.
- Management reaffirmed 2026 guidance of $2.6–$2.7 billion in revenue and $160–$170 million in non‑GAAP operating profit and said it repurchased about $96 million of debt to cut interest costs.