Rackspace Technology Inc.
(NASDAQ:RXT) stock plunged more than 29% on Thursday after the cloud services provider slashed its full-year revenue outlook, overshadowing new artificial intelligence initiatives and a partnership with Palantir Technologies Inc.
(NASDAQ:PLTR).
Rackspace Cuts Revenue Outlook Rackspace lowered its fiscal 2026 revenue forecast to a range of $2.45 billion to $2.55 billion, down from its previous outlook of $2.60 billion to $2.70 billion.
The company also reduced its adjusted EBITDA guidance to $285 million to $295 million, down from $305 million to $315 million.
