Rackspace lowered 2026 revenue and adjusted EBITDA guidance, outlined enterprise AI capacity plans and a $250 million at-the-market equity program, while a Levi & Korsinsky-backed investigation followed a sharp share-price drop.
Rackspace Technology said Palantir has named it a preferred partner for regulated, sovereign and mid-market deployments under a definitive agreement to deploy Palantir Foundry and AIP, while the company also lowered its fiscal 2026 outlook. Rackspace cut full-year revenue guidance to $2.45 billion-$2.55 billion from $2.60 billion-$2.70 billion and adjusted EBITDA guidance to $285 million-$295 million from $305 million-$315 million, citing prioritization decisions, supply constraints, geopolitical factors, the exit of colocation and basic hosting revenue, and continued declines in low-margin public cloud resale as hyperscalers move customers to direct contracts. The update, disclosed in an 8-K on July 9, 2026 alongside a $250 million at-the-market equity program and the Palantir partnership expansion, was followed by a more than 25% intraday drop in Rackspace shares and a securities investigation announced by Levi & Korsinsky into whether earlier FY2026 statements were misleading. Rackspace also said it has about 400 Palantir certifications, completed its first joint deployment in less than two months with a reported 94% reduction in quote cycle time at a U.S.-based solar tracking manufacturer, and plans to scale enterprise AI capacity to 15 MW by the end of 2027 and 30 MW by the end of 2028.