SINHA DHARMENDRA KUMAR sold $267K of RXT

A securities fraud class-action lawsuit was filed against Rackspace Technology Inc. and unnamed executives, alleging the company misled investors about its AI strategy and financial impact. The complaint cites a July 9 disclosure that AI required resource reallocation and coincided with a $150 million 2026 revenue guidance cut and a $25 million private cloud outlook reduction. Rackspace shares fell 33.6% on July 9, per the complaint.

Rackspace Technology (NASDAQ:RXT) faces a securities fraud class action after its stock fell 33.6% on July 9, 2026. The complaint alleges the company misled investors about its AI efforts and their impact, including a $150 million cut to full-year 2026 revenue guidance and a $25 million Private Cloud outlook reduction, following an AMD AI infrastructure MoU.

BOSTON, July 30, 2026 (GLOBE NEWSWIRE) -- Block & Leviton announces that a securities fraud lawsuit has been filed against Rackspace Technology (Nasdaq: RXT) and certain of its executives. Investors who have lost money in their Rackspace Technology investment should contact the firm to learn more about how they might recover those losses. For more details, visit https://blockleviton.com/cases/rxt. What is this all about?

Rackspace Technology (RXT) announced a $150 million AI-focused pivot while also launching a $250 million at-the-market equity offering, according to the company. Shares fell after management cut guidance, including a $150 million top-line reduction. The same day, Rackspace said it partnered with Palantir (PLTR) to deploy Foundry and AIP in regulated environments, citing 400 certifications and a first deployment in under two months. Analysts maintain a Hold rating and a $4.90 mean target.

Rackspace Technology’s Q2 2026 earnings call discussed AI GPU capacity plans. CFO Mark Marino said two-thirds of GPU demand is expected from new customers and revenue per megawatt should be $15M to $20M, with a $10M floor and above 50% EBITDA margins. FY26 guidance: revenue $2.45B to $2.55B, EBITDA $285M to $295M. The company also announced a $250M at-the-market equity offering for GPU growth.

Rackspace Technology said it launched a $250 million at-the-market equity offering to fund enterprise AI infrastructure and GPU growth, including private cloud and regulated deployments. It cut its 2026 outlook after exiting lower-margin cloud revenue, now guiding full-year revenue to $2.45B-$2.55B and EBITDA to $285M-$295M. It plans AMD GPU capacity of ~2MW by end-2026, 15MW by end-2027, and 30MW by end-2028.