Rackspace Technology (RXT) said Thursday that it expects a Q2 adjusted loss of between $0.11 and $0.08 a share, widening from a loss of $0.06 a year earlier.

Two analysts polled by FactSet expect a loss of $0.06 per share.

The company expects Q2 revenue of between $641 million and $649 million, down from $666.3 million a year earlier. Three analysts surveyed by FactSet expect $657.1 million.

Rackspace also lowered its full-year 2026 outlook, saying it now expects revenue of $2.45 billion to $2.55 billion, down from its prior outlook of $2.60 billion to $2.70 billion, and adjusted EBITDA of $285 million to $295 million, down from $305 million to $315 million previously.

In a separate statement, Rackspace and Palantir Technologies (PLTR) said they have agreed on an operating model framework to help regulated and sovereign enterprises own and operate artificial intelligence in production.

The framework, aimed at regulated sectors including healthcare and financial services, combines Palantir Foundry and AIP with Rackspace's governed infrastructure and managed operations, the companies said.

Rackspace said the framework names it a preferred partner for Palantir deployments in mid-market, regulated and sovereign environments.

Rackspace also said it has signed an equity distribution agreement with Goldman Sachs (GS) for the potential sale of up to $250 million in shares. Proceeds from the sale are expected to be used for working capital, capital expenditures, and growth capital, it said.

Rackspace shares were down 4.1% in Thursday's premarket trading.