{
  "id": 636422,
  "title": "Rackspace private cloud strengthens as quarterly losses widen",
  "url": "https://urgent.news/2026/08/12/rackspace-private-cloud-strengthens-as-quarterly-losses-widen",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-08-12T06:09:53.000Z",
  "source": {
    "name": "Arabian Post",
    "slug": "arabian-post",
    "url": "https://thearabianpost.com/rackspace-private-cloud-strengthens-as-quarterly-losses-widen/"
  },
  "original_language": "en",
  "account": "Rackspace Technology reported a modest increase in second-quarter revenue growth, as stronger private cloud sales helped offset a decline in its larger public cloud business. The company generated $670.1 million in revenue for the quarter that ended June 30, representing a 0.6% increase from $666.3 million a year earlier. Private Cloud revenue grew 5.5% to $263.3 million, while Public Cloud revenue decreased 2.3% to $406.8 million. Despite the growth in the Private Cloud segment, Rackspace's operating loss increased during the quarter, growing to $33 million, compared to a $25 million loss in the same period last year. The net loss widened to approximately $68 million, up from $55 million, and the diluted loss per share increased to $0.27 from $0.23. Higher costs and investments in artificial intelligence contributed to the company's financial challenges. The contrasting performances in the private and public cloud divisions underscore Rackspace's strategic shift towards private infrastructure, regulated workloads, and enterprise AI. Private Cloud has gained importance for the company as organizations prioritize control over sensitive data and computing workloads. The rise in Private Cloud revenue was partly due to customer contracts involving hardware sales-type lease arrangements, which also increased costs, illustrating the trade-off between higher revenue and the expenses associated with delivering dedicated infrastructure.",
  "summary": "Rackspace Technology experienced a modest increase in revenue for the second quarter, with private cloud sales offsetting weakness in its public cloud business. However, higher costs and investment in artificial intelligence pushed the company deeper into the red, resulting in a wider net loss. Private Cloud revenue grew by 5.5% to $263.3 million, while Public Cloud revenue fell by 2.3% to $406.8 million. Despite the overall decline, Rackspace's focus on private cloud infrastructure, regulated workloads, and enterprise AI is expected to drive future growth, particularly in sectors seeking greater control over sensitive data and computing workloads.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}