Rackspace Technology reports Q1 2026 revenue of $678 million, up 2% year over year, while announcing a memorandum of understanding with AMD to build governed enterprise AI infrastructure.

Rackspace's total company GAAP revenue for Q1 2026 was $678 million, up 2% year over year, driven by public cloud performance. Public cloud GAAP revenue was $443 million, up 7% year over year, while private cloud GAAP revenue was $235 million, down 6% year over year due to timing of a large healthcare deal onboarding.

The company announced a non-binding memorandum of understanding with AMD to establish a new category of governed enterprise AI infrastructure, integrating AMD Instinct GPU accelerators, AMD EPYC CPUs and AMD's ROCm software ecosystem. The collaboration is designed for enterprise, healthcare, financial services and sovereign use cases across four integrated capabilities: Enterprise AI Cloud, Enterprise Inference Engine, inference as a service and bare metal accelerated compute.

Rackspace highlighted wins in regulated industries including a multi-year agreement with a U.K. NHS Foundation Trust and an expanded relationship with AdventHealth to host and manage more than 400 additional workloads on Rackspace Private Cloud. The company also closed its first joint Palantir deal in 41 days with a U.S.-based solar tracking manufacturer, deploying AI-enabled workflows to reduce the customer's quoting cycle by 94%.

Management reaffirmed full-year 2026 guidance in its entirety and stated that the AMD-related opportunity is not materially factored into 2026 guidance because of supply chain and delivery timing. The company cautioned that the AMD memorandum is non-binding and no definitive agreement has been reached.