A securities class action has been filed against Rackspace Technology, Inc. (RXT) on behalf of persons and entities that purchased or otherwise acquired Rackspace Technology securities between May 7, 2026 through July 8, 2026. This case has been filed in the USDC – SDNY.
On July 9, 2026, before the market opened, Rackspace published second quarter 2026 financial results and “a strategic and financial update on its transition to becoming the operator of the full enterprise AI stack.” The Company revealed that its AI investments would require a significant re-prioritization of resources and, as a result, reduced its full year 2026 revenue guidance by $150 million. The Company also cut its full year 2026 Private Cloud revenue outlook by $25 million. Finally, the Company explained that “[l]ower near-term margins reflect upfront growth investment and restructuring, ahead of AI revenue ramping.”
On this news, Rackspace’s stock price fell $2.21, or 33.6%, to close at $4.37 per share on July 9, 2026, thereby injuring investors.