Rackspace Technology's Enterprise AI Buildout Could Generate Up to $600 Million in Annual Revenue, RBC Says

MT Newswires Live07-10 22:26

Rackspace Technology (RXT) may generate $450 million to $600 million in annual enterprise AI revenue at full deployment by 2028, driven by expanded GPU infrastructure under its partnership with Advanced Micro Devices (AMD), with adjusted earnings before interest, taxes, depreciation and amortization margins topping 50%, RBC Capital Markets said in a Thursday research note.

According to the report, Rackspace's planned $250 million at-the-market offering and asset-backed financing are expected to fund its AI expansion, while its lower fiscal 2026 guidance reflects a shift toward higher-margin enterprise AI deployments rather than weaker demand.

RBC lowered its 2026 estimates to reflect the updated outlook, the planned exit from certain businesses, and expected contributions from the GPU deployment.

The brokerage said Rackspace's expanded partnership with Palantir Technologies (PLTR) enhances its ability to deliver AI infrastructure and managed services to regulated sectors, including healthcare, financial services and energy.

RBC maintained its sector perform rating and $4 price target on the stock.

Rackspace Technology shares were up 9.7% in Friday trading.

Price: 4.76, Change: +0.39, Percent Change: +8.95

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2650135286?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2026-07-10 22:26","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2650135286","market":"sh","top_or_hot":-1,"title":"Rackspace Technology's Enterprise AI Buildout Could Generate Up to $600 Million in Annual Revenue, RBC Says","media":"MT Newswires Live","content":"<html><body><p> <a href=\"https://laohu8.com/S/RXT\">Rackspace Technology</a> (RXT) may generate $450 million to $600 million in annual enterprise AI revenue at full deployment by 2028, driven by expanded GPU infrastructure under its partnership with Advanced Micro Devices (AMD), with adjusted earnings before interest, taxes, depreciation and amortization margins topping 50%, RBC Capital Markets said in a Thursday research note.</p><p>According to the report, Rackspace's planned $250 million at-the-market offering and asset-backed financing are expected to fund its AI expansion, while its lower fiscal 2026 guidance reflects a shift toward higher-margin enterprise AI deployments rather than weaker demand.</p><p>RBC lowered its 2026 estimates to reflect the updated outlook, the planned exit from certain businesses, and expected contributions from the GPU deployment.</p><p>The brokerage said Rackspace's expanded partnership with <a href=\"https://laohu8.com/S/PLTR\">Palantir</a> Technologies (PLTR) enhances its ability to deliver AI infrastructure and managed services to regulated sectors, including healthcare, financial services and energy.</p><p>RBC maintained its sector perform rating and $4 price target on the stock.</p><p>Rackspace Technology shares were up 9.7% in Friday trading.</p><p>Price: 4.76, Change: +0.39, Percent Change: +8.95</p></body></html>","source":"mtnewswires_news","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Rackspace Technology's Enterprise AI Buildout Could Generate Up to $600 Million in Annual Revenue, RBC Says</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nRackspace Technology's Enterprise AI Buildout Could Generate Up to $600 Million in Annual Revenue, RBC Says\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1092851196\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/3002d84abbd5ace3c99397c7f95b8d4e);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">MT Newswires Live </p>\n<p class=\"h-time\">2026-07-10 22:26</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><body><p> <a href=\"https://laohu8.com/S/RXT\">Rackspace Technology</a> (RXT) may generate $450 million to $600 million in annual enterprise AI revenue at full deployment by 2028, driven by expanded GPU infrastructure under its partnership with Advanced Micro Devices (AMD), with adjusted earnings before interest, taxes, depreciation and amortization margins topping 50%, RBC Capital Markets said in a Thursday research note.</p><p>According to the report, Rackspace's planned $250 million at-the-market offering and asset-backed financing are expected to fund its AI expansion, while its lower fiscal 2026 guidance reflects a shift toward higher-margin enterprise AI deployments rather than weaker demand.</p><p>RBC lowered its 2026 estimates to reflect the updated outlook, the planned exit from certain businesses, and expected contributions from the GPU deployment.</p><p>The brokerage said Rackspace's expanded partnership with <a href=\"https://laohu8.com/S/PLTR\">Palantir</a> Technologies (PLTR) enhances its ability to deliver AI infrastructure and managed services to regulated sectors, including healthcare, financial services and energy.</p><p>RBC maintained its sector perform rating and $4 price target on the stock.</p><p>Rackspace Technology shares were up 9.7% in Friday trading.</p><p>Price: 4.76, Change: +0.39, Percent Change: +8.95</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4116","symbol_name":"互联网服务与基础架构","start_time":0,"source_url":"https://www.mtnewswires.com/","article_id":"2650135286","we_media_id":"1092851196","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2650135286","pubTimestamp":1783693592,"columns":[],"sourceInfo":{"source_id":"mtnewswires_news","name":"MT Newswires"},"weMediaInfo":{"media_name":"MT Newswires Live","introduction":"The most recognized names in North America, Europe and Asia rely on MT Newswires to power their applications. Better news, better service, better price.","home_visible":1,"id":"1092851196","head_image":"https://community-static.tradeup.com/news/3002d84abbd5ace3c99397c7f95b8d4e"},"summary":"Rackspace Technology  may generate $450 million to $600 million in annual enterprise AI revenue at full deployment by 2028, driven by expanded GPU infrastructure under its partnership with Advanced Micro Devices , with adjusted earnings before interest, taxes, depreciation and amortization margins topping 50%, RBC Capital Markets said in a Thursday research note.According to the report, Rackspace's planned $250 million at-the-market offering and asset-backed financing are expected to fund its AI expansion, while its lower fiscal 2026 guidance reflects a shift toward higher-margin enterprise AI deployments rather than weaker demand.RBC lowered its 2026 estimates to reflect the updated outlook, the planned exit from certain businesses, and expected contributions from the GPU deployment.The brokerage said Rackspace's expanded partnership with Palantir Technologies  enhances its ability to deliver AI infrastructure and managed services to regulated sectors, including healthcare, financial ","collect":0,"end_time":0,"defaultTopTitle":"","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"BK4116":"互联网服务与基础架构","BK4608":"AI应用概念股","RXT":"Rackspace Technology"},"translate_title":"加拿大皇家银行表示，Rackspace Technology 的企业人工智能建设可产生高达 6 亿美元的年收入","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"RXT":1.96},"content_text":"Rackspace Technology (RXT) may generate $450 million to $600 million in annual enterprise AI revenue at full deployment by 2028, driven by expanded GPU infrastructure under its partnership with Advanced Micro Devices (AMD), with adjusted earnings before interest, taxes, depreciation and amortization margins topping 50%, RBC Capital Markets said in a Thursday research note.According to the report, Rackspace's planned $250 million at-the-market offering and asset-backed financing are expected to fund its AI expansion, while its lower fiscal 2026 guidance reflects a shift toward higher-margin enterprise AI deployments rather than weaker demand.RBC lowered its 2026 estimates to reflect the updated outlook, the planned exit from certain businesses, and expected contributions from the GPU deployment.The brokerage said Rackspace's expanded partnership with Palantir Technologies (PLTR) enhances its ability to deliver AI infrastructure and managed services to regulated sectors, including healthcare, financial services and energy.RBC maintained its sector perform rating and $4 price target on the stock.Rackspace Technology shares were up 9.7% in Friday trading.Price: 4.76, Change: +0.39, Percent Change: +8.95","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":true,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.45.2","shortVersion":"4.45.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2650135286","isCrawlerRequest":true}