Rackspace Technology Inc

Rackspace Technology has launched Rackspace Cloud, a fully managed multitenant platform built on Broadcom's VMware Cloud Foundation 9.1. The platform targets regulated industries that need modern cloud features such as Kubernetes and AI workloads while keeping governance and compliance controls. This is among the first commercial uses of VMware Cloud Foundation 9.1 in a fully managed multitenant setup, highlighting early commercial traction after Broadcom's VMware acquisition. Broadcom is a US based semiconductor and infrastructure software company with a market cap of about US$1.8t.

Rackspace Technology has entered into a definitive agreement with AMD to deploy an initial 30 megawatts of AMD-based compute across its data centers in phases from late 2026 through 2028. The first deployment of nearly 2 megawatts is targeted for completion by the end of 2026, with capital expenditures of approximately $75 million. Management expects to average $15 million to $20 million in revenue per megawatt deployed, implying $450 million to $600 million in annual revenue at full deployment, and EBITDA margins in the 50% plus range. The company also strengthened its partnership with Palantir and appointed Pranav Nambiar as SVP and GM for AI Infrastructure. Second-quarter GAAP revenue was $670 million, up 1% year-over-year, and full-year revenue guidance of $2.45 billion to $2.55 billion was maintained.

Rackspace Technology reported second-quarter revenue of $670 million, up 1% year over year, and maintained its full-year 2026 guidance. The company expects positive full-year free cash flow of $50 million to $70 million and is expanding its enterprise AI infrastructure strategy, including an AMD-backed plan to deploy 30 megawatts of compute capacity by 2028. Rackspace expects the initiative to generate $450 million to $600 million in annual revenue at full capacity, with enterprise AI EBITDA margins above 50%. Private Cloud revenue rose 5% to $263 million, helped by contract-related revenue timing, while Public Cloud revenue fell 2% to $407 million. Despite the decline, Public Cloud margins improved as Rackspace shifted toward higher-value AI, data and managed-services work.

Rackspace Technology has appointed Pranav Nambiar as Senior Vice President and General Manager to lead its AI Infrastructure business. Nambiar brings experience from roles at AWS, DigitalOcean, Google, and Microsoft focused on cloud and AI platforms. The hire signals Rackspace Technology's push into sovereign and compliant AI offerings for enterprise clients, as demand grows for governed AI environments that meet regulatory and data residency requirements. The move fits the company's pivot toward higher-value, AI-driven managed services for regulated industries like healthcare and finance, though it comes amid execution risks including a cut to 2026 guidance, legal scrutiny, and declining legacy revenues.

U.S. enterprises are integrating Microsoft AI and cloud capabilities into AI-native operating models to improve performance, according to a new ISG Provider Lens report. The 2026 study finds organizations combining Microsoft Fabric, Azure OpenAI, and Copilot with data, analytics, and productivity tools into unified environments for continuous automation and business intelligence. Rising economic pressures are driving demand for measurable outcomes, predictable costs, and faster value from AI investments, with enterprises increasingly adopting FinOps practices and platform-based models over one-time implementations. The report evaluates 35 providers across four quadrants, naming Accenture and Avanade, Cognizant, DXC Technology, HCLTech, Hexaware, Infosys, NTT DATA, Rackspace Technology, and TCS as Leaders in all four. Wipro was named the global ISG CX Star Performer for 2026 among Microsoft ecosystem providers, earning the highest customer satisfaction scores.

The U.S. Small Business Administration is expanding its use of Palantir Technologies' software for a nationwide fraud detection push across pandemic-era relief programs, while new commercial alliances with Rackspace, SNP SE, and GNP Seguros extend Palantir's AI platforms into regulated and SAP-centric environments. The SBA expansion reinforces Palantir's government pillar, though concentrated U.S. government exposure remains a risk. Rackspace has built out roughly 400 Palantir certifications and is focusing on healthcare, finance, energy, and sovereign workloads, aiming to convert fraud detection and defense wins into broader commercial revenue. Palantir's narrative projects $10.8 billion revenue and $3.6 billion earnings by 2028, requiring 40.7% yearly revenue growth and a $2.5 billion earnings increase from $1.1 billion today. Some analysts assume revenue could lift about 45 percent annually and earnings toward $4.9 billion by 2028, a more optimistic scenario that may shift once expanded SBA contracts are fully reflected.

Rackspace Technology has received the UK Defence Employer Recognition Scheme Gold Award, the highest level of recognition under the Ministry of Defence scheme. The award honors employers that demonstrate exceptional support for the armed forces community, including reservists, veterans, and military families, through policies such as paid leave for reservist training, active veteran recruitment, and flexible support for military families. Rackspace Technology previously earned the Silver Award in 2025 and has now advanced to Gold status.

Palantir Technologies announced a series of partnerships in July 2026. On July 9, Rackspace and Palantir unveiled an operating model framework combining Palantir Foundry and AIP with Rackspace's governed private cloud and managed operations for regulated and sovereign enterprises. Rackspace has scaled to approximately 400 Palantir certifications and committed to deploying Foundry and AIP across more than 70% of its own back-office operations. On July 8, SNP SE and Palantir announced a strategic partnership, with the first joint solution, Test Data Proposal, expanding SNP's Kyano platform. On July 7, Palantir announced an enterprise expansion agreement with GNP Seguros, its first publicly announced commercial customer in Latin America, which uses Palantir's platforms for claims fraud detection, risk monitoring, and underwriting improvement.

Palantir Technologies is deepening its partnership with Rackspace to deliver governed AI stacks for highly regulated sectors including healthcare, finance, and energy. Zeta Global is integrating Palantir's Foundry platform and plans to migrate its entire Data Cloud client base onto Palantir's infrastructure. These moves position Palantir's software as core infrastructure for data sovereignty, compliance, and large-scale operational AI in commercial settings. Palantir's stock currently trades at $130.04, with a year-to-date decline of 22.5% and a 12.5% drop over the past year, though it has posted a 1.6% gain over the last 30 days.

U.S. stock index futures were mixed on Thursday as investors weighed escalating tensions between the United States and Iran against a continued rebound in semiconductor shares. The Dow futures contract slipped 85 points, or 0.2%, while S&P 500 futures gained 12 points, or 0.2%, and Nasdaq 100 futures advanced 176 points, or 0.6%. Among individual movers, Enovix surged 17% after appointing former Apple executive Michael Vyvoda as chief operating officer to oversee global manufacturing, supply chain and operations as the company ramps up production in Malaysia and South Korea. Forte Biosciences jumped 12% after reporting positive Phase 1b results for its vitiligo treatment FB102, which delivered a statistically significant improvement over placebo with benefits continuing through 24 weeks. Rackspace Technology gained 8% after announcing a strategic partnership with Palantir Technologies to deploy enterprise artificial intelligence in regulated industries, positioning Rackspace as a preferred partner for implementing Palantir's Foundry and Artificial Intelligence Platform. PepsiCo slipped 1.8% after reporting mixed second-quarter results, with revenue topping Wall Street estimates but adjusted earnings per share coming in just below analyst expectations.

Nvidia reported quarterly revenue of $81.6 billion for the period ended April 2026, continuing a streak of rapid expansion that has seen its sales more than double from $30.0 billion in the quarter ended July 2024. Advanced Micro Devices posted $10.3 billion in revenue for its most recent quarter ended March 2026, a 38% year-over-year increase but still a fraction of Nvidia's total. Nvidia's dominance is driven by its leadership in AI chips, with data center customers accounting for 92% of its revenue, while AMD's data center segment represented 56% of its total. Nvidia also announced its Vera Rubin platform entered full production on June 1, 2026, and reported a 72% net income margin for its fiscal first quarter ended April 26, 2026. AMD reported a 14% net income margin for its fiscal first quarter ended March 28, 2026, and announced a definitive agreement with Rackspace Technology on June 16, 2026.

Advanced Micro Devices and Rackspace Technology have finalized a binding agreement for the phased deployment of 30 megawatts of AMD-based compute across Rackspace's global data centers, beginning in late 2026 through 2028. The deal builds on a May 7 memorandum of understanding and covers AMD Instinct GPUs, including MI355X and MI350P models, along with AMD EPYC CPUs, integrated into an Enterprise AI Cloud architecture. Targeting regulated industries such as healthcare, the collaboration will jointly pursue enterprise customers and accelerate delivery of four capabilities: Enterprise AI Cloud, Enterprise Inference Engine, Inference as a Service, and Bare Metal AMD Instinct. Deployment authorizations and certain commercial terms, including pricing and financing, remain subject to finalization.