Filing Flows › Rackspace Technology (RXT) › Q1 2026
Rackspace Technology (RXT) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 8, 2026
Rackspace Technology (RXT) reported revenue of $678M for the first quarter 2026 (Q1 2026), +2% from a year earlier and -0.7% from the quarter before. Operating margin was -2.6%, net earnings $8.3M (1.2% of revenue).
Rackspace Technology, Q1 2026: revenue $678M (+2% year over year), operating margin -2.6%, net earnings $8.3M, operating cash flow $5.1M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $678M | -0.7% | +2% |
| Operating profit | −$17.8M | — | — |
| Net earnings | $8.3M | — | — |
| Operating cash flow | $5.1M | -91% | -60% |
What changed
Revenue was $678.1M in Q1 2026, up 2% year over year and down 1% from the previous quarter.
Gross margin was 17.6%, down 1.5 points from Q1 2025. Operating costs exceeded revenue by $17.8M, an operating margin of -2.6%. Operating expenses fell 17% while revenue rose 2%. Net earnings were $8.3M. The effective tax rate was -1.2%. Non-operating items added $26.0M, 317% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $5.1M (down 60% year over year), 61% of net earnings. Non-cash charges added back $40.6M of depreciation and $6.6M of share-based compensation. Working capital and other items used $50.4M. Capital expenditures of $14.5M exceeded it, leaving free cash flow of −$9.4M.
Questions
What was Rackspace Technology's revenue in the first quarter 2026?
Rackspace Technology (RXT) reported revenue of $678M for the first quarter 2026 (Q1 2026), +2% from a year earlier and -0.7% from the quarter before.
Was Rackspace Technology profitable in the first quarter 2026?
Operating loss was $17.8M (-2.6% of revenue) and net earnings $8.3M.