Partnerships Improving Longer-Term Outlook

研报英文原文证据摘录

Partnerships Improving Longer-Term Outlook

May 11, 2026 | 15:10 ET~

Rackspace Technology

RXT-NSDQ Rating Price: May-8 Target ↑ Total Rtn IT Services

Market Perform $5.49 $5.00 -9%

Keith Bachman, CFA Analyst

keith.bachman@bmo.com (347) 891-0258

Adam J. Holets Senior Associate

Partnerships Improving Longer-Term Outlook adam.holets@bmo.com (646) 248-5505

Bradley Clark, CFA VP Associate

brad.clark@bmo.com (347) 853-4783

Bottom Line: Jonathan Stein Associate

While RXT results were solid, we thought the key highlight of Q1 was the announced jonathan.stein@bmo.com (718) 619-7165

AMD MoU, in which RXT plans to integrate AMD CPUs and GPUs across governed AI Legal Entity: BMO Capital Markets Corp.

infrastructure. More broadly, Q1 reinforces our view that RXT is pursuing a strategy

2YR Price Volume Chart

centered on partnerships with key AI vendors such as Palantir and AMD to strengthen 6.00

long-term positioning for regulated AI workloads. While still in early innings, we view 5.00

the strategic direction positively and thus raise our price target to $5 from $2 and 4.00

maintain Market Perform. 3.00 600500

2.00 400

Key Points 1.00 200100

0.00 0

Nov May Nov May

Modest Revenue Improvement: RXT Public Cloud revenues grew ~6.1% y/y CC in LHS: Price ($) / RHS: Volume (mm) Source: FactSet

Q1, increasing from ~5.8% y/y CC in Q4 2025, while Private Cloud revenues declined Company Data in $

~7.5% y/y CC, though improving from an 11% y/y CC decline in Q4 on similar compares.

Dividend $0.00 Shares O/S (mm) 246.9

Public Cloud strength was driven by services growth, which has grown double digits y/

y, alongside higher infrastructure volumes, reflecting continued momentum in higher- Yield 0.0% Market Cap (mm) $1,356

value managed services, particularly AI-related workloads.