New York, Feb 19, 2026, 05:05 EST — Premarket
- Rackspace Technology shares dropped 7.3% to $1.27 ahead of the open, following a wild 226.97% spike at Wednesday’s close.
- Rackspace and Palantir had teamed up, pitching a partnership to get Palantir’s software actually running “in production” with managed operations. That move followed.
- Now, investors are eyeing Rackspace’s Feb. 26 earnings, searching for clues on whether the rally has legs beyond the headline.
Shares of Rackspace Technology slipped 7.3% to $1.27 in Thursday’s premarket after soaring more than threefold the previous day. The move comes on the heels of a partnership announcement with Palantir Technologies.
This drop stands out, given Rackspace wrapped up Tuesday at just 42 cents. Moves like this can quickly reshape the market’s view of a possible comeback — or highlight how fast enthusiasm evaporates when buyers step back.
Rackspace and Palantir announced Wednesday they’re teaming up to help enterprises roll out Palantir’s Foundry and Artificial Intelligence Platform, then keep those systems running under a “governed” setup — that is, with the security and compliance routines handled by managed operations, rather than passed off to customers. GlobeNewswire
Rackspace CEO Gajen Kandiah put it bluntly in the release: “Organizations need AI that works in production, not just in demos.” Sameer Kirtane, who leads U.S. commercial at Palantir, said the partnership’s purpose is to speed up adoption for customers shifting difficult data systems. GlobeNewswire
The companies are keeping the deal’s price under wraps. Rackspace, for its part, currently fields 30 engineers trained by Palantir for data migration work—plans call for that number to jump past 250 in the coming year.
Shares rocketed 226.97% on Wednesday, closing at $1.37 after about 526.5 million shares changed hands—a huge jump from only 1.27 million traded the previous day.
Despite the rally, Rackspace shares have dropped roughly 49% in the last 52 weeks—a period defined by ongoing downward revisions on growth and cash flow goals.
Bulls face a clear pitfall here: just because there’s a partnership headline, that doesn’t mean the revenue’s already secured. The companies themselves warn about a range of execution issues—staffing, delivery quality, customer uptake—all flagged in their forward-looking statements.
Rackspace reports its fourth-quarter numbers on Feb. 26. Investors want updates from management on margins, demand, and if the Palantir partnership is making an impact yet in the pipeline.
