A second shareholder-rights firm has opened an investigation after Rackspace cut its 2026 revenue and EBITDA outlook following preliminary second-quarter results and a shift away from certain low-margin engagements.
Glancy Prongay Wolke & Rotter LLP said it has begun investigating possible federal securities law violations involving Rackspace Technology, Inc., adding to earlier legal scrutiny after the company released preliminary second-quarter 2026 results and lowered its 2026 outlook. Rackspace said the revised forecast reflects a transition away from certain low-margin engagements that will be redeployed to its enterprise AI business. The company now expects a 2026 revenue midpoint of $2.5B, down from a prior midpoint of $2.65B, and an EBITDA midpoint of $290M, down from $310M. Rackspace shares fell $2.21, or 33.6%, to close at $4.37 on July 9, 2026. Shareholder-law investigations typically examine whether prior disclosures adequately reflected business risks, strategy shifts and financial expectations.