RXT CLASS ACTION NOTICE: Faruqi & Faruqi, LLP Reminds Rackspace Technology (RXT) Investors of Securities Class Action Lawsuit Deadline on September 28, 2026

Faruqi & Faruqi, LLP , a leading national securities law firm, is investigating potential claims against Rackspace Technology, Inc. ("Rackspace" or the "Company") (NASDAQ: RXT) and reminds investors of the September 28, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

The complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Company's enterprise AI efforts would require Rackspace to significantly re-prioritize its capacity and capital away from the profitable Private Cloud segment; (2) that Rackspace's Public Cloud revenue was declining as customers contracted directly with hyperscale cloud platforms; (3) that, as a result, Rackspace was likely to significantly reduce a material portion of its Public Cloud infrastructure resale business; (4) as a result, the Company's fiscal year 2026 revenue would be significantly impacted; and (5) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

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.