Rackspace Technology, Inc. faces a proposed securities class action over alleged misleading statements and omissions concerning its enterprise AI strategy, Private Cloud business and 2026 outlook. Pomerantz LLP announced the filing and said investors who purchased or otherwise acquired Rackspace securities during the May 7, 2026, to July 8, 2026, class period may ask the court to appoint them as lead plaintiff by September 28, 2026. On July 9, Rackspace reported second-quarter 2026 results and said its transition to operating the full enterprise AI stack would require significant resource reprioritization. The company cut full-year 2026 revenue guidance by $150 million and its Private Cloud revenue outlook by $25 million, while warning that near-term margins would be pressured by upfront growth investment and restructuring before AI revenue ramps up. The stock fell $2.21, or 33.6%, to close at $4.37. The complaint alleges that Rackspace failed to disclose that its AI efforts would divert capacity and capital from Private Cloud, that Public Cloud revenue was declining as customers contracted directly with hyperscale platforms, and that the company could significantly reduce its Public Cloud infrastructure resale business.