What changed in this filing

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Item 1. Business

2026-03-06 compared with 2025-03-21 · 74 added, 82 removed, 223 unchanged (41% of the section changed)

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Rackspace Technology is a leading end-to-end hybrid cloud and AI solutions company.

We design, build, and operate our customers’ cloud environments across all major technology platforms, irrespective of technology stack or deployment model.

We partner with our customers at every stage of their cloud journey, enabling them to modernize applications, build new products and, adopt innovative technologies.

Cloud technology is reinventing how companies store, process and manage their data.

Businesses have accelerated their adoption of cloud technologies in recent years due to:

• Strong growth in highly variable, high-scale workloads (a computing task performed by a business application) such as mobile applications, device telemetry and associated marketing, tracking and data.

Those workloads have also driven an explosion of data volumes.

All of these workloads run more efficiently in the flexible, agile, variable-cost environment of cloud technologies with its associated highly scaled data storage.

We serve as a trusted operator of the full technology stack, from governed private cloud infrastructure to AI deployed in production environments.

From edge to core to cloud, we design, integrate and operate the infrastructure, data foundations and software platforms required to deliver business outcomes with predictable cost, resilience, security and compliance.

Our solutions are purpose-built for regulated and mission-critical environments where uptime, data sovereignty and operational accountability are essential.

Cloud infrastructure has become the foundation of enterprise technology and AI is now reshaping how that infrastructure must be designed, operated and governed.

Businesses have accelerated their adoption of cloud technologies driven by:

• Explosive growth in data volumes and the need for scalable, flexible infrastructure to process and manage them efficiently across an expanding range of workloads.

• The need to compete with “digital natives” (technology companies that began their existence online in the digital age and do not have legacy infrastructure or technology to maintain and support).

• The emergence of cloud-based business tools, such as data analytics, machine learning and AI, that help companies optimize business performance.

• The emergence of AI as a transformative business capability, no longer simply a tool for optimizing performance, but a fundamental reshaping of how enterprises operate, compete and deliver value.

In addition, the cost to maintain a company-owned data center (known in industry parlance as “on-premises” or “on-prem” data centers) has become cost prohibitive since companies must constantly upgrade hardware, maintain physical infrastructure and constantly apply security patches to counteract emerging security threats.

Companies are also looking to reduce their on-premises operations budgets to fund the build-out of their cloud management operations and skill base.

At the same time, several dominant players have emerged in the cloud computing industry:

the “hyperscalers” – AWS, Google Cloud and Microsoft Azure, which are the leading public cloud providers;

as well as VMware by Broadcom, which is a leading provider of private cloud technology.

These technology providers operate cloud environments at a massive scale and have a significant cost-benefit advantage compared to a company-owned on-prem data center.

They can also easily invest billions of dollars in product development and innovation, maintenance of the physical infrastructure and upkeep of important security protocols and technology.

As a result of these developments, most companies will become increasingly dependent on cloud technologies for most of their new workloads, as well as a portion of existing workloads, over the coming years.

The recent growth of GenAI is fueling demand for increased compute, storage, and connectivity.

We anticipate this secular trend to continue for the foreseeable future.

AWS, Google Cloud and Microsoft Azure are now the established backbone of enterprise computing, continuously investing billions of dollars in infrastructure, AI services, security and product innovation no individual enterprise can match.

VMware by Broadcom is a leading provider of private cloud technology, enabling enterprises to extend cloud operating models into governed, sovereign environments.

Together, these platforms form the infrastructure layer on which modern enterprise technology runs and managing workloads effectively across them has become a defining challenge for organizations.

AI is accelerating demand for governed, scalable infrastructure.

The rapid growth of AI is fueling demand for increased compute, storage, and connectivity and we anticipate this secular trend to continue for the foreseeable future.

The industry is rapidly evolving its solutions to accelerate AI in the enterprise.

As AI moves from isolated experimentation into production, it is increasingly being embedded within core enterprise systems, financial processes, regulated workflows and customer-facing platforms.

This is driving demand for modernized data foundations, high-performance infrastructure and operational models capable of governing AI workloads over time.

This shift is also driving renewed demand for governed private cloud environments.

As AI becomes embedded in data-sensitive and regulated workloads, enterprises are placing greater emphasis on architectures that provide enhanced control over data sovereignty, security and operational predictability, alongside their public cloud investments.

The hybrid cloud paradigm brings additional complexity for businesses moving to the cloud.

Moving to the cloud is not as simple as selecting a single platform and migrating data.

The cloud is taking market share because it is a structurally different platform with structurally different cost dynamics.

Oftentimes, new code must be written, or existing code must be re-written, to take full advantage of cloud capabilities.

Likewise, simply moving existing code to the cloud (known as “lifting and shifting”) can often result in high or unforeseen cost over-runs.

The efficiencies of cloud are real, but it takes substantial effort to realize them.

For many organizations, the foundational migration to cloud is well underway.

The challenge today is different:

optimizing complex, distributed environments for performance, cost and AI readiness wile maintaining the governance and compliance standards that regulated industries demand.

Managing that complexity is not as simple as selecting a single platform.

Realizing the full advantages of the cloud’s structural cost and agility requires ongoing effort.

Workloads must continuously be evaluated for placement, architectures and cost efficiency.

Code written for one environment often requires meaningful re-engineering to perform well in another.

And the promise of cloud economics can quickly erode without disciplined operational oversight.

Companies also face the challenge of managing multiple clouds.

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• to access business tools that may run better on one cloud platform versus another;

• to accommodate past decisions related to prior deployments and/or acquisitions, both of which can force most large companies into managing workloads situated on multiple clouds.

In addition, some business applications cannot migrate to the cloud and must remain on mature cloud platforms like private cloud, or even on-prem data centers, for various reasons:

• to accommodate past decisions related to prior deployments and/or acquisitions, both of which can force most large companies into managing workloads situated across multiple environments.

In addition, some business applications cannot migrate to the cloud and must remain on private cloud or on-premises infrastructure for various reasons:

• Corporate governance requires data sovereignty for sensitive data such as financial or health information.

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Rackspace Technology is a leading hybrid cloud and AI solutions company.

We help companies of all sizes manage their transition to the cloud, make sense of their IT infrastructure, migrate their data to the cloud, optimize their cloud presence on an ongoing basis, accelerate the responsible adoption of AI and manage the workloads best left to managed hosting or other mature platforms.

Few companies have the internal resources required to effectively manage a transition to the cloud.

We help companies of all sizes manage these complexities and accelerate value realization from their cloud and AI investments.

We serve as a trusted operator of the full technology stack, from governed private cloud infrastructure to AI deployed in production environments, with particular depth in regulated and mission-critical industries where uptime, data sovereignty and operational accountability are essential.

Our solutions span edge, core, private cloud, public cloud and sovereign environments, designed to work as one coordinated system.

Few companies have the internal resources required to assemble the breadth of expertise a hybrid cloud environment requires.

Building a well-rounded and capable in-house team would require hiring experts on all three hyperscaler platforms as well as private cloud, colocation and managed hosting.

We believe professionals with these skill sets are challenging for companies to source and hire because they generally prefer to work at a technology company.

We believe this creates an opportunity for a service partner like Rackspace Technology which enables businesses to fully embrace the power of all cloud technologies.

Our team of 5,100 highly skilled Rackers, including consultants and engineers, partners with companies at every stage of their cloud transformation journey and helps them:

• select the right platforms for their business needs;

• manage the movement of applications and data to the cloud and re-hosting of applications best suited for managed hosting;

• strategically locate and manage growing volumes of associated data storage to minimize cost and business risk;

• optimize their cloud footprint by leveraging new offerings and new pricing models from the hyperscalers, as well as new cloud computing technologies;

• operate their cloud environment;

• monitor security and ensure the security infrastructure is kept up to date;

• modernize their legacy business applications so they are optimized to run in the cloud;

• modernize their data systems to be ready for advanced analytics and AI;

• accelerate the responsible adoption of AI in their organization;

• mine their business data for actionable insights using cloud data analytics tools.

We aim to be our customers’ most trusted advisor and services partner in their path to cloud transformation and to accelerate the value of their cloud investments.

We believe this creates an opportunity for a partner like Rackspace Technology, by enabling organizations to fully leverage the power of hybrid cloud and deploy AI with the reliability, security and governance their environments require.

Our team of 5,000 highly skilled Rackers, including consultants and engineers, partners with companies at every stage of their cloud transformation journey to:

• select the right platforms and architectures aligned to their business objectives;

• design and implement secure, scalable AI-ready infrastructure across public, private, and hybrid environments;

• migrate and modernize legacy business applications and data systems;

• strategically locate and manage growing volumes of associated data to minimize cost and business risk;

• modernize data systems to support advanced analytics and AI;

• deploy AI use cases into production with appropriate governance, guardrails and performance monitoring;

• optimize cloud consumption through automation, financial governance and architectural refinement;

• operate and secure complex hybrid environments on an ongoing basis.

We aim to be our customers’ most trusted advisor and operating partner in their path to cloud and AI transformation, accelerating the value of their cloud investments and enabling intelligent, data-driven innovation.

We give customers the ability to make informed decisions when choosing the right technologies, and we recommend solutions based on each customer’s unique objectives.

In this way, we empower our customers to harness the full benefits of cloud adoption.

In this way, we empower our customers to harness the full benefits of cloud adoption and operationalize AI for measurable business objectives.

We differentiate ourselves from other service providers by:

• focusing solely on the cloud as the only pure play hybrid cloud solutions company;

• automating much of the manual labor to reduce cost for our customers;

• leveraging 25+ years of expertise in architecting and operating mission-critical workloads across private, public, hybrid, and multicloud environments;

• automating to reduce the total cost of ownership for our customers;

• delivering solutions that meet strict industry compliance standards and align with geographic, legal and data residency requirements, giving customers confidence their workloads and data remain secure and under the proper controls;

• providing our renowned Fanatical Experience for our customers;

• maintaining close relationships with the major cloud providers – AWS, Google Cloud, Microsoft Azure, VMware by Broadcom, and Dell Technologies;

• maintaining close relationships with major technology providers – AWS, Google Cloud, Microsoft Azure, VMware by Broadcom, Dell Technologies and Palantir Technologies;

• providing a full suite of cloud services across public and private cloud, as well as managed hosting and colocation services, so that enterprises can cost-effectively maintain legacy applications that are not cloud-ready while migrating their business to the cloud gradually;

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Our tight-knit relationships with leading cloud partners enable Rackers to be on the front lines of cloud technology and among the first to utilize the latest capabilities of the cloud when our cloud partners launch new solutions.

Our partnerships, Rackers and culture combine to ensure that we are at the forefront of major trends in technology, including cloud native application development, Internet of Things, AI and containers.

We believe this expertise - and our ability to deliver it effectively - enables our customers to achieve their desired business outcomes, innovate faster and stay ahead of their competition.

Rackspace Fabric, our proprietary cloud software, is a significant differentiator.

Rackspace Fabric is the proprietary software that underpins our industry-leading autom ation.

It includes over 200 unique tools and components to deliver our services and represents an investment of over $1 billion and 12 million hours o f highly skilled professionals' time.

We believe it gives us a sustainable competitive advantage that would be difficult, if not impossible, for a competitor to replicate.

Rackspace Fabric serves as a single pane of glass through which customers can manage their entire cloud presence and delivers automation, AI, predictive analytics and proprietary tools that make our services even more reliable and easier to use.

Rackspace Fabric was built over the course of our two decades of experience in the cloud business.

We leverage automation to reduce the amount of manual labor associated with serving our customers, as well as to improve efficiency.

Whenever there is repetitive, manual labor associated with customer-related tasks, we automate the task.

We also use advanced machine learning tools to identify additional work that can be automated.

This has provided Rackspace Technology with a critical mass of automation, based upon institutional knowledge and know-how, that we continue to grow incrementally every year.

This is in direct contrast to our competition, many of whom charge for their services on a markup over labor costs, and therefore are not incentivized to employ automation in order to reduce customer costs.

Rackspace Fabric includes automation that ranges from service delivery to self-healing infrastructure, giving us the ability to anticipate and proactively respond to opportunities and threats.

It ensures consistency in our customers’ experiences and allows our Rackers to automate key service and application management processes, freeing up resources to focus on strategic, high-value business opportunities.

This drives an efficient business model that has generated revenue per employee of over $500,000 for the years ended December 31, 2023 and 2024, which we believe is ahead of our competitors and in-line with leading SaaS companies.

Our partnerships, Rackers and culture combine to position us to adopt new capabilities early and integrate them into our customer environments responsibly.

We believe our expertise across hybrid cloud architecture, governed private cloud, data modernization and AI deployment, combined with our ability to operate these environments at scale, enables our customers to innovate faster and achieve their desired business outcomes.

Our go-to-market and service-delivery strategy.

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We served over 75,000 customers across 120 countries as of December 31, 2025.

We are recognized in leading analyst firm reports, including the Gartner Magic Quadrant and Critical Capabilities for Public Cloud IT Transformation Services, IDC Marketscape:

Worldwide Cloud Professional Services Vendor Assessment, IDC Marketscape:

Middle East and Africa Cloud Professional Services Vendor Assessment, PeMa Quadrant:

Gen AI Services Providers, and multiple ISG Provider Lens reports focused on Public Cloud and Private/Hybrid Cloud and Data Center Solutions.

We are recognized in leading analyst firm reports, including the Gartner’s Market Guide for EHR Cloud Hosting and Migration Services, Everest Group’s Cloud Services for Mid-market Enterprises PEAK Matrix Assessment, IDC’s European Microsoft Azure Services Marketscape, Forrester’s AI Infrastructure Solutions Landscape, and multiple ISG Provider Lens reports focused on Public Cloud and Private/Hybrid Cloud and Data Center Solutions.

In 2025 we received the following Provider Lens Leader designations for reports by ISG, a leading global technology research and advisory firm:

Multi Public Cloud Services and Solutions, Cybersecurity Solutions and Services, Google Cloud Partner Ecosystem, AWS Partner Ecosystem, Microsoft Partner Ecosystem and Private/Hybrid Cloud - Data Center Services.

In addition, we have also received several industry partner awards including being awarded 3x Partner of the Year for Google- including the 2020 Google Cloud Breakthrough North America Partner of the Year Award, 2021, AWS Migration Partner of the Year (US), 2021, VMware CloudHealth Global Partner of the Year, 2021, and Dell Technologies Global Alliances – Excellence in Expansion, EMEA Award 2021.

In 2023 we received several industry partner awards including AWS SI Partner of the Year - NAMER, AWS Sustainability Partner of the Year - NAMER and AWS Education Partner of the Year – EMEA and VMware 2023 Lifecycle Services Award for the Americas Region, Dell Technologies Excellence in Server and Storage Sales, Americas and 2023 Microsoft Partner of the Year Azure Intelligent Data Platform, Data & AI- Singapore.

Multi Public Cloud Services and Solutions, Cybersecurity Solutions and Services, Google Cloud Partner Ecosystem, AWS Partner Ecosystem, Microsoft AI and Cloud Ecosystem and Private/Hybrid Cloud - Data Center Services.

ISG recognized Rackspace as a Product Challenger in Agentic AI Services, Advanced Analytics and AI Services and Generative AI Services, and Healthcare Digital Services.

In addition, we have also received several industry partner awards.

In 2023, we received the AWS SI Partner of the Year - NAMER, AWS Sustainability Partner of the Year - NAMER and AWS Education Partner of the Year – EMEA and VMware 2023 Lifecycle Services Award for the Americas Region, Dell Technologies Excellence in Server and Storage Sales, Americas and 2023 Microsoft Partner of the Year Azure Intelligent Data Platform, Data & AI- Singapore.

In 2024, we were recognized as a strategic partner with Microsoft in Data & AI, and a Ready-Tier partner for Copilot Jumpstart.

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In addition, we received the Sustainability Impact Award from SustainableIT.org.

In 2025, we were recognized as the AWS Global Collaboration Partner of the Year and also received the 2025 Dell Technologies Global Alliances EMEA Innovation Partner of the Year and 2025 Dell Technologies Global Alliances Marketing Partner of the Year.

Rackspace Technology’s predecessor company was founded in 1998, and was focused primarily on providing outsourced, dedicated IT infrastructure, primarily for small and mid-sized businesses.

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• Private Cloud :

Rackspace Private Cloud enables our customers to achieve their business outcomes at our world class data centers or in a colocation or edge facility strategic to our customers’ success and connected by our RackConnect TM Global network service, virtual backbone, or provider-based network services.

Rackspace Private Cloud enables our customers to achieve their business outcomes at our global data centers or in a colocation or edge facility strategic to our customers’ business objectives and connected by our RackConnect TM Global network service, virtual backbone, or provider-based network services.

The Private Cloud product portfolio includes:

• Programmatic Infrastructure :

Programmatic Infrastructure is the foundation of Private Cloud and includes hardware and services for compute, network, storage, and data protection services.

Programmatic Infrastructure is the foundation of Private Cloud and includes hardware and services for datacenter compute, network, and storage.

We partner with OEMs like Dell, Cisco, Palo Alto Networks, and NetApp to provide standard offers at scale or solutions tailored to our customers’ specific needs.

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These offers include Enterprise, Business, Flex, and Anywhere packages to match our customers’ needs and locations.

We also offer RMPK (a managed Kubernetes service).

• Platform-as-a-Service :

Our PaaS offers include RMPK (a managed Kubernetes service), RXDB (a privately hosted Database-as-a-Service solution specializing in High Availability NoSQL databases), RSDM (a team of database experts to manage and optimize your database estate), and SPOT (a unique cloud infrastructure offer auctioned in an open market as turnkey fully managed Kubernetes clusters).

Our PaaS offers include RXDB (a privately hosted Database-as-a-Service solution specializing in High Availability NoSQL databases), RSDX (a team of database experts to manage and optimize your database estate), and SPOT (a unique cloud infrastructure offer auctioned in an open market as turnkey fully managed Kubernetes clusters).

• Private Cloud Solutions :

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• Private Cloud Services :

To solve our customers’ challenges and meet them where they are in their digital transformation, we provide managed services, professional services, Elastic Engineering services, and security services.

To solve our customers’ challenges and meet them where they are in their digital transformation, we provide managed services, and professional services such as Elastic Engineering services, and security services.

Additionally, our Rackspace Email service provides a fully managed email platform for customers and carriers.

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Leveraging our IP, delivery frameworks, and reference architectures, we provide professional services and managed services across Data Modernization, Cloud Native Data Platforms, Self Service Analytics, AI, and Machine Learning across AWS, Azure, and Google Cloud.

In June 2023, we launched Foundry for Artificial Intelligence (FAIR TM ), a groundbreaking practice dedicated to helping organizations accelerate the responsible and sustainable adoption of AI solutions across all industries.

FAIR offers three service offerings designed to meet the needs of every industry and organizational requirement.

FAIR Ideate is an interactive and collaborative ideation workshop that helps organizations uncover actionable use cases for generative AI with defined business impacts.

AI readiness diagnostics provide critical considerations for successful AI adoption.

FAIR Incubate is an agile and iterative program that co-creates an enterprise's first generative AI solution.

It establishes the technology stack and assesses the viability of AI, ensuring seamless integration into organizational processes.

FAIR Industrialize is a systematic effort to transform the AI solution into a product, implementing governance, defining metrics, and optimizing the AI model and Distributed Cloud Infrastructure for continuous improvement.

In June 2023, we launched Foundry for Artificial Intelligence (FAIR TM ) to help organizations responsibly accelerate AI adoption—from ideation through production.

As AI became central to how we operate and deliver value, FAIR evolved with it.

Today, those capabilities come together as Rackspace AI—a comprehensive portfolio of AI services and solutions that combines infrastructure, cloud-native services, and deep expertise to help organizations scale AI from experimentation to enterprise production.

Designed to support secure, regulated, and mission critical-workloads across private cloud, hyperscalers, and edge environments, Rackspace AI gives organizations the flexibility and confidence to deploy AI where it delivers the greatest impact.

We offer professional services across our entire portfolio, including hybrid solutions, AI, applications, security and data.

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In order to continue to drive growth and capture our large market opportunity, key elements of our growth strategies include:

• growing our private cloud business with new solutions, such as Rackspace Software Defined Datacenter, Industry Cloud, Sovereign Cloud, Private AI Cloud and Edge;

• building innovative solutions to broaden our portfolio, including scaled cloud-native solutions on our public cloud platforms and full-stack cloud offerings for infrastructure, applications and data;

• growing our private cloud business with new solutions, such as Rackspace Software Defined Datacenter, Healthcare Cloud, Sovereign Cloud, Private AI Cloud and Edge;

• accelerating sales motions to defend our commercial business, expanding into mid-market and selectively targeting enterprise customers with our differentiated solutions both horizontally and vertically;

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• focusing on a holistic strategy enabling optionality for our customers on their AI journey through innovative services and solutions and supporting inferencing and fine-tuning workloads with hybrid AI infrastructure.

Additionally, we are implementing AI to enhance cloud optimization and management, incorporating AI into our operations and business, driving AI powered insights.

Additionally, we have implemented AI to enhance cloud optimization and management, incorporating AI into our operations and business, driving AI-powered insights;

• engaging in strategic partnerships, such as Palantir Technologies to advance our AI offerings.

Our Competition

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Our Approach to Partnerships

We benefit from differentiated partnerships with all major public and private cloud vendors, including AWS, Microsoft Azure, Google Cloud and VMware by Broadcom.

These partnerships provide us with a competitive advantage unmatched by our competitors, spanning across multiple disciplines, including:

We benefit from differentiated partnerships with major public and private cloud providers and advanced data and AI platform companies, including AWS, Microsoft Azure, Google Cloud, VMware by Broadcom, and Palantir Technologies.

Together, these partnerships position us as an orchestrator of AI workloads, enabling customers to modernize, operationalize AI, and drive measurable business outcomes.

Our partnerships provide us a competitive advantage spanning across multiple disciplines, including:

• Comprehensive alignment:

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This has helped us arrive and stay at the forefront of innovation well before our competitors, and develop services and tools related to emerging technologies such as cloud-native application development, machine learning and AI.

• Cloud, data and AI platform integration:

We collaborate with strategic partners to integrate secure cloud infrastructure with advanced data and AI platforms, enabling customers to operationalize AI at scale.

Through joint solution development and delivery, we help customers unify data, deploy AI use cases in production and build resilient operating models that support mission-critical workloads.

We believe these relationships are beneficial to us, our partners and our customers.

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Our website and the information contained on, or that can be accessed through, our website will not be deemed to be incorporated by reference in, and are not considered part of, this Annual Report.

The SEC maintains an internet site that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC.

The SEC maintains an internet website that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC.

You can review copies of these documents on the SEC's website.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business