v3.26.1
Segment Reporting (Tables)
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Schedule of Reconciliation of Revenue from Segments to Consolidated
The table below presents revenue and segment operating profit by reportable segment and a reconciliation of consolidated segment operating profit to consolidated income (loss) before income taxes for the three months ended March 31, 2025 and 2026.
Three Months Ended March 31,
(In millions)20252026
Public Cloud
Revenue
$415.6 $443.4 
Third party infrastructure (1)
(326.4)(353.9)
Other cost of revenue (2)
(49.7)(50.2)
Other segment items (3)
(22.2)(18.6)
Segment operating profit$17.3 $20.7 
Private Cloud
Revenue
$249.8 $234.7 
Cost of revenue
(157.2)(150.2)
Other segment items (3)
(31.6)(26.6)
Segment operating profit$61.0 $57.9 
Total Consolidated
Revenue
$665.4 $678.1 
Segment operating profit$78.3 $78.6 
Corporate functions(52.7)(47.9)
Share-based compensation expense(12.0)(6.6)
Transaction-related adjustments, net (4)
(1.5)(1.6)
Restructuring and transformation expenses (5)
(13.1)(9.0)
Amortization of intangible assets (6)
(37.4)(31.3)
Interest expense(19.4)(26.2)
Loss on investments, net(0.1)(0.1)
Gain on debt extinguishment— 55.8 
Other expense, net(5.4)(3.5)
Total consolidated income (loss) before income taxes$(63.3)$8.2 
(1)Represents usage charges from public cloud infrastructure providers.
(2)Other cost of revenue excludes third party infrastructure expenses and is comprised of certain license costs, labor, and other designated expenses.
(3)
Other segment items for each segment include directly allocable research and development expenses, sales and marketing expenses, and certain other general and administrative expenses.
(4)
Includes purchase accounting adjustments, exploratory acquisition and divestiture costs, and expenses related to financing activities.
(5)
Includes consulting and advisory fees related to business transformation and optimization activities, as well as associated severance, certain facility closure costs, and lease termination expenses. Also includes payroll taxes associated with the exercise of stock options and vesting of restricted stock.
(6)
All of our intangible assets are attributable to acquisitions, including the Rackspace Acquisition in 2016.
Schedule of Reconciliation of Gross Profit from Segments to Consolidated
The table below presents revenue and segment operating profit by reportable segment and a reconciliation of consolidated segment operating profit to consolidated income (loss) before income taxes for the three months ended March 31, 2025 and 2026.
Three Months Ended March 31,
(In millions)20252026
Public Cloud
Revenue
$415.6 $443.4 
Third party infrastructure (1)
(326.4)(353.9)
Other cost of revenue (2)
(49.7)(50.2)
Other segment items (3)
(22.2)(18.6)
Segment operating profit$17.3 $20.7 
Private Cloud
Revenue
$249.8 $234.7 
Cost of revenue
(157.2)(150.2)
Other segment items (3)
(31.6)(26.6)
Segment operating profit$61.0 $57.9 
Total Consolidated
Revenue
$665.4 $678.1 
Segment operating profit$78.3 $78.6 
Corporate functions(52.7)(47.9)
Share-based compensation expense(12.0)(6.6)
Transaction-related adjustments, net (4)
(1.5)(1.6)
Restructuring and transformation expenses (5)
(13.1)(9.0)
Amortization of intangible assets (6)
(37.4)(31.3)
Interest expense(19.4)(26.2)
Loss on investments, net(0.1)(0.1)
Gain on debt extinguishment— 55.8 
Other expense, net(5.4)(3.5)
Total consolidated income (loss) before income taxes$(63.3)$8.2 
(1)Represents usage charges from public cloud infrastructure providers.
(2)Other cost of revenue excludes third party infrastructure expenses and is comprised of certain license costs, labor, and other designated expenses.
(3)
Other segment items for each segment include directly allocable research and development expenses, sales and marketing expenses, and certain other general and administrative expenses.
(4)
Includes purchase accounting adjustments, exploratory acquisition and divestiture costs, and expenses related to financing activities.
(5)
Includes consulting and advisory fees related to business transformation and optimization activities, as well as associated severance, certain facility closure costs, and lease termination expenses. Also includes payroll taxes associated with the exercise of stock options and vesting of restricted stock.
(6)
All of our intangible assets are attributable to acquisitions, including the Rackspace Acquisition in 2016.
Schedule of Property, Equipment, and Software, Net
Property, equipment and software, net, consisted of the following: 
(In millions)December 31,
2025		March 31,
2026
Computers and equipment$1,114.5 $1,101.6 
Software428.6 437.1 
Furniture and fixtures7.3 7.2 
Buildings and leasehold improvements 416.6 413.7 
Property, equipment and software, at cost1,967.0 1,959.6 
Less: Accumulated depreciation (1,377.7)(1,378.2)
Work in process7.0 5.7 
Property, equipment and software, net$596.3 $587.1 
The table below presents depreciation expense included in segment operating profit above for the three months ended March 31, 2025 and 2026.

Three Months Ended March 31,
(In millions)20252026
Public Cloud$1.7 $1.8 
Private Cloud29.7 33.8 
Corporate functions5.1 5.0 
    Total depreciation expense$36.5 $40.6