AI Stock Rackspace (RXT) Surges After AMD Deal and Earnings Win

Rackspace Technology (NASDAQ: RXT) joined Nasdaq’s list of top percentage gainers today after reporting first-quarter results and news of a deal with AMD.

The stock is currently trading at $4.26, up more than 88% on volume of over 156 million shares.

Rackspace and AMD today announced the signing of a Memorandum of Understanding (MOU), establishing a framework for a multi-year strategic partnership to build an enterprise AI cloud purpose-built for regulated enterprises and sovereign workloads, where security, governance and accountability are non-negotiable.

“As enterprises are taking AI out of the lab and into production environments, they are asking who they can trust to run it there,” said Gajan Kandia, CEO of Rackspace Technology. “Controlling AI infrastructure in a regulated environment with defined accountability is not something you insist on after the fact. It must be built from the ground up. Rackspace and AMD are building exactly that and, in doing so, are establishing a new class of enterprise AI infrastructure that the market is demanding.”

“Enterprise AI is rapidly moving from experimentation to production, and it requires a compute foundation for performance and efficiency at scale,” said Dan McNamara, senior vice president and general manager, Compute and Enterprise AI, AMD. “Our collaboration with Rackspace delivers AMD AI compute in managed, private, and governed environments so enterprises can deploy AI with the performance and flexibility their workloads demand.”

The AMD collaboration aims to position Rackspace to complete its curated enterprise AI stack and introduce four integrated capabilities. Together, these capabilities are designed to create a complete, integrated stack from bare metal computation and developer-ready inference tooling through a fully powered inference runtime with defined SLAs in a governed enterprise AI cloud. The objective is to give enterprises a single operator accountable for each layer, tailored to the sovereignty, performance and compliance requirements of each workload.

first quarter 2026 results

• Revenue in Q1 2026 was $678 million, an increase of 2% on a reported basis and 1% on a constant currency (1) basis compared to revenue of $665 million in Q1 2025.
• Private cloud revenue in Q1 2026 was $235 million, a decrease of 6% on a reported basis and 8% on a constant currency basis compared to revenue of $250 million in Q1 2025.
• Public cloud revenue was $443 million in Q1 2026, an increase of 7% on a reported basis and 6% on a constant currency basis compared to revenue of $416 million in Q1 2025.
• Loss from operations in the first quarter of 2026 was $(18) million, while loss from operations in the first quarter of 2025 was $(38) million.
• Net income in Q1 2026 was $8 million, while net loss in Q1 2025 was $(72) million.
• Net income per diluted share in Q1 2026 was $0.03, while net loss per diluted share in Q1 2025 was $0.31.
• Non-GAAP operating profit in Q1 2026 was $31 million, an increase of 20% compared to $26 million in Q1 2025.
• Non-GAAP loss per share for the first quarters of 2026 and 2025 was $(0.06).
• Capital spending in the first quarter of 2026 was $35 million, compared to $27 million in the first quarter of 2025.

Full news:

https://ir.rackspace.com/news-releases/news-release-details/rackspace-technology-and-amd-sign-memorandum-understanding

https://ir.rackspace.com/news-releases/news-release-details/rackspace-technology-reports-first-quality-2026-results