EQIX

Equinix has delivered a 43.1% gain over the past 3 years, yet its valuation checks are mixed. An intrinsic value estimate from a Discounted Cash Flow (DCF) approach suggests the stock trades below that estimate, while market based multiples point to a richer price tag. Over 3 years, Equinix is up 43.1%. This puts recent weakness over the past few weeks into context as part of a longer positive run rather than a sudden move. Recent moves to expand AI focused infrastructure and services, including collaborations with NVIDIA and the acquisition of Nordic data center operator atNorth, can support long term cash flow expectations. However, the capital intensive nature of data centers may add risk if cash generation does not keep pace with investment needs. The company screens as undervalued in 2 of 6 checks, which means Equinix does not screen as a clear bargain overall. This is the case even though the Discounted Cash Flow (DCF) intrinsic value estimate sits about 36.5% above the current share price, and the value score of 2 suggests the broader set of metrics leans expensive. The issue now is whether Equinix's current price around US$1,035.98 already reflects its AI and data center growth ambitions, or if the intrinsic value estimate points to scope for investors to be paying less than the long term cash flow profile implies. Scan hand picked AI infrastructure opportunities beyond Equinix with 55 AI infrastructure stocks to see how other stocks compare for the same long term demand shift. The Discounted Cash Flow (DCF) model used here values Equinix based on projected cash that could accrue to shareholders over time. In this framework, Equinix is treated as a growing cash generator, with latest twelve month free cash flow of about $3.8b in reporting currency. Those cash flows are assumed to keep growing rather than shrinking, which supports a higher intrinsic value than would be implied by flat or declining cash generation. Under these assumptions, the DCF model points to an estimated intrinsic value of about $1,630 per share, compared with the current price around $1,035. On this basis, the stock screens as roughly 36.5% undervalued. The recently completed atNorth acquisition adds more AI focused data center exposure, which helps explain why a growth oriented cash flow profile underpins a higher intrinsic value than the market price today. On the DCF view, Equinix currently looks undervalued relative to the cash flows implied in this model. Our Discounted Cash Flow (DCF) analysis suggests Equinix is undervalued by 36.5%. Track this in your watchlist or portfolio, or discover 47 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Equinix. P/E is a useful lens for Equinix because investors often focus on how much they are paying for each dollar of earnings in established, cash generating businesses. On this measure, Equinix trades on a P/E of about 66.7x, which is much higher than the Specialized REITs industry average of roughly 16.5x and above the peer group average of about 40.4x. The fair P/E ratio implied by the model is around 38.2x, which already factors in Equinix's size, margins and risk profile. The gap between this fair ratio and the current 66.7x suggests the stock screens as overvalued on earnings. Even with the recent AI focused announcements, such as the expanded NVIDIA collaboration and the atNorth acquisition, the current P/E leaves little room for investors who prefer paying closer to the earnings levels implied by the fair multiple. On the P/E yardstick, Equinix stock currently looks overvalued compared with both its fair ratio and sector peers. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where this Equinix valuation puzzle leaves off. They spell out the specific growth, margin and earnings paths that would need to play out for Equinix's stock to be worth materially more or less than today's price, and each one links its number to a clear view on how growth, profitability and risk might evolve. You can revisit this analysis on the Community page as new information arrives. Be one of the first voices in the Simply Wall St community to put a clear, number driven case on Equinix and share a view on whether moves like the atNorth acquisition and the expanded NVIDIA collaboration could justify where the stock trades today. Set out your narrative now and see how your thesis holds up as new results and AI infrastructure updates come through. Do you think there's more to the story for Equinix? Head over to our Community to see what others are saying! For Equinix, the Discounted Cash Flow (DCF) model points to intrinsic value that is materially higher than the current share price, while the earnings multiple view screens the stock as overvalued. That gap reflects a tension between long dated cash flow potential in AI focused infrastructure and what investors are currently willing to pay per dollar of earnings. Broader valuation checks remain weak, so the key question is whether Equinix can convert its heavy data center investment into durable cash generation that justifies the DCF optimism, rather than the market treating the stock as a value trap. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include EQIX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

A month has gone by since the last earnings report for Equinix (EQIX). Shares have added about 2.8% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Equinix due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Equinix, Inc. before we dive into how investors and analysts have reacted as of late. Equinix reported second-quarter 2026 AFFO per share of $11.78, up 18.9% year over year and above the Zacks Consensus Estimate of $11.25 by 4.71%. Revenues rose 16.4% to $2.63 billion and surpassed the consensus mark of $2.59 billion by 1.34%. Strong underlying demand and one-time xScale leasing fees supported results. Annualized gross bookings increased 23% year over year to $424 million. Recurring revenues reached $2.38 billion, up 10.9% from the prior-year quarter. Non-recurring revenues more than doubled to $248 million from $113 million, reflecting the benefit of xScale leasing activity. Americas’ revenues rose 24.6% year over year to $1.25 billion, with recurring revenues increasing to $1.07 billion. EMEA revenues advanced 10.2% to $845 million, while Asia-Pacific revenues grew 9.1% to $529 million. Normalized and constant-currency monthly recurring revenues increased across all three regions. Customer demand remained broad-based as the company delivered its second-highest quarterly bookings volume on record. Presales activity increased more than 50% year over year, contributing to a record backlog and improving visibility into future revenue growth. Equinix added a record 9,700 net interconnections during the second quarter. Monthly recurring revenues increased 11% year over year on both an as-reported and normalized constant-currency basis. Adjusted EBITDA climbed 23.6% year over year to $1.40 billion. The adjusted EBITDA margin expanded to a record 53% from 50% in the prior-year quarter, aided by operating execution and one-time xScale fees. Operating income increased 34.6% to $665 million. The cost of revenues increased 13.5% to $1.23 billion, but revenue growth outpaced the rise. Total capital expenditures were $1.58 billion, up from $989 million in the prior-year quarter. Non-recurring expenditures totaled $1.53 billion, including $1.37 billion directed toward IBX data center expansion. The company had 52 projects underway across 33 markets and accelerated more than 7,000 cabinets previously scheduled for 2027 into the fourth quarter of 2026. Major project openings included facilities in Silicon Valley, Madrid and Milan. More than 85% of retail expansion spending is tied to owned land and owned buildings with long-term ground leases. Equinix ended June with $979 million in cash and cash equivalents and $1.25 billion in short-term investments. Available liquidity totaled $7.7 billion, including undrawn revolving credit capacity. The company reported total gross debt of roughly $22 billion and a net leverage ratio of 3.6 times. During the period, Equinix issued Canadian-dollar notes due in 2030 and 2035 and repaid $700 million of U.S.-dollar notes due in May 2026. For the third quarter, management guided revenues to $2.525-$2.575 billion, implying a 9-11% increase year over year. Adjusted EBITDA is expected in the range of $1.275-$1.315 billion, with a margin of 51%. For 2026, Equinix now expects revenues of $10.205-$10.285 billion, up from the previously guided range of $10.144-$10.244 billion. Adjusted EBITDA is projected between $5.210 billion and $5.270 billion, with a margin of approximately 51%. AFFO per share is expected between $42.69 and $43.29, up from the prior guidance range of $42.31-$43.11. Management also raised its 2027-2029 outlook. Annual revenue growth is now expected between 10% and 13% compared with the prior range of 7-10%. Annual AFFO per-share growth is projected at 9-12%, while the adjusted EBITDA margin is expected to exceed 53% by 2029. In the past month, investors have witnessed a downward trend in estimates review. At this time, Equinix has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Equinix has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Equinix, Inc. (EQIX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, July 29, 2026 at 5:30 p.m. ET Vice President of Investor Relations - Ryan C. Burke Chief Executive Officer and President - Adaire Rita Fox-Martin Chief Financial Officer - Olivier Leonetti Senior Vice President of Finance - Phillip Konieczny Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good afternoon, and welcome to the Equinix Second Quarter Earnings Conference Call. All participant lines will be able to listen only until the open for questions. Today's conference is being recorded. If you object, please disconnect at this time. I will now turn the call over to Ryan C. Burke, Vice President of Investor Relations. You may begin. Ryan C. Burke: Good afternoon, and welcome to our second quarter conference call. Before we get started, I want to remind you that some of the statements that we make today are forward looking in nature and involve certain risks and uncertainties. Actual results may vary significantly from those statements and may be affected by the risks we identify in today's press release and in our filings with the SEC. Equinix assumes no obligation and does not intend to update or comment on forward looking statements made on this call. In addition, in light of regulation fair disclosure, it is our policy to not comment on our financial guidance during the quarter unless it is done through an explicit public disclosure. On today's conference call, we will provide non GAAP measures. We provide a reconciliation of those measures to the most directly comparable GAAP measures in today's press release on the Equinix Investor Relations page at www.equinix.com. We have made available on our website a presentation that we will refer to. Along with certain supplemental financial information and other data. With us today are Adaire Rita Fox-Martin, CEO and President Olivier Leonetti, CFO and Phillip Konieczny, SVP of Finance. At this time, I will turn the call over to Adaire. Adaire Rita Fox-Martin: Thank you, Ryan. Good afternoon to you all. The AI driven infrastructure cycle continues to accelerate. And it is playing directly to our strengths. Demand for neutral, interconnected sovereign infrastructure is compounding across our business. And our global scale differentiated portfolio and unmatched ecosystems are converting that demand into durable profitable growth. You see this clearly in our Q2 results. Monthly recurring revenue growth accelerated to 11% year over year on a normalized and constant currency basis. This marks our third straight quarter of double digit MRR growth with strong profit performance. Annualized gross bookings grew 23% our second highest volume on record. Total sales activity inclusive of annualized gross bookings and presales grew over 30% and we continue to see a record backlog. We added 9.7 thousand net interconnections our most ever. And AFFO per share grew 18% on a normalized and constant currency basis. A direct result of the disciplined execution by our teams around the world. Given the strength of our performance as well as our bookings and pre sales momentum, we are raising our full year guidance and long term outlook. For 2026, we now expect revenue growth of 11% to 12% and AFFO per share growth of 10% to 12%. This is the largest single guidance raise in the history of our company. Reflecting broad based durable demand and strong execution across our business. We continue to accelerate our capacity expansion to meet this growing demand In fact, we will double the number of cabinets we deliver in the second half of the year. As a result, we now expect 2026 CapEx to range between $5 billion to $6 billion. Looking further out, we expect to deliver top and bottom line growth well ahead of the outlook we provided last year. Through 2029, we expect total revenue growth in the 10% to 13% range annually. With AFFO per share growing 9% to 12% during the same period. To capture the robust demand in front of us, we plan to invest $5 billion to $7 billion in CapEx annually through 2029. These are high conviction investments that we believe will deliver attractive returns while enabling the outcomes our customers need. And we fully expect the new capital we are deploying to deliver the mid-20 percent yield you have grown accustomed to. Olivier will provide a more detailed view of our outlook shortly. Our revised outlook reflects more than a strong quarter. It shows what a focused team executing the right strategy can deliver. And we are doing it in a market that is materially stronger than it was a year ago. As the market has evolved, the nature of the demand has given us greater conviction in our plan. A significant proportion of this demand comes from the world's largest enterprises, modernizing their on-prem infrastructure that was never built for today's broad based distributed workloads. The remainder comes from net new AI native workloads and service providers powering them. In both cases, the majority are already Equinix customers. And they increasingly need solutions we are uniquely positioned to deliver because of our consistent focus on this target market. All around the world, customers are confronting the same reality. Their networking, cloud, and AI workloads are growing more distributed, complex and demanding and they need infrastructure built for a new era. Their workloads do not live in 1 place. They run across clouds, models, and geographies simultaneously in real time. that is something compute alone cannot solve. It requires connectivity at the intersection of everything. That point of intersection is Equinix. We have been at the center of every major shift in enterprise technology over the past 30 years. We were the neutral ground where the Internet scaled. We were the neutral platform that made multi cloud real. And now as inference and agentic AI, unleash extraordinary capabilities, alongside new layers of complexity, we are the neutral exchange where customers can run connect and orchestrate it all. This kind of connectivity has never been more important. And no 1 has built what we have built. Our ecosystem is approximately twice the size of the next largest provider. Now as we curate the emerging AI ecosystem, our competitive advantage is growing. 8 of the top 10 model providers as well as 8 of the top 10 neo clouds are already running their key networking workloads on Equinix today. That kind of ecosystem density creates a flywheel of growth and value creation. Our infrastructure attracts interconnection rich workloads. Interconnection expands the ecosystem. A more expansive ecosystem attracts more of everything. And our momentum continues to build. Let me share some recent customer examples that bring our momentum to life. Leading AI cloud infrastructure provider Orion VM, selected Equinix to power its fully managed private agentic AI bundle. Helping enterprises deploy and scale sovereign, agentic AI with a clear path to measurable ROI. Built on our secure neutral infrastructure the bundle supports private AI deployments heterogeneous compute, and autonomous AI capabilities. And through Orion VM's collaboration with Tenstorrent, customers gain greater choice and flexibility at the AI accelerator layer. FCX AI, Australia's sovereign AI infrastructure provider, partnered with Equinix to build the country's first sovereign AI inferencing node leveraging our Sydney operations. Equinix enables a faster, more governed path to integrating AI into core operations with a scalable foundation for expansion across Asia Pacific. Raymond James, 1 of the leading financial firms, selected Equinix to augment their on premise model to our multi cloud infrastructure. Our ability to enable low latency connectivity to their customers, clouds and SaaS providers as well as the strength of our overall financial services industry ecosystem were key factors in their decision to grow their business using Equinix. And we are working with Verizon to deliver enhanced enterprise connectivity by combining their adaptive network fabric with Equinix's neutral interconnection hubs. This integration via APIs allows for near real time provisioning. Our unmatched metro density global scale and advanced automation capabilities help customers like Verizon lower execution risk and accelerate service delivery. These examples are enabled by our progress against our strategic pillars. Starting with Serve Better, we delivered annualized gross bookings of $424 million up 23% year over year. A notable acceleration from Q1. In addition, we delivered approximately $110 million of pre selling activity. Collectively, that is over 30% growth in total sales activity in the quarter. We have a robust pipeline entering the back half of the year and we have already closed over 45% of our bookings target for Q3. Our pre selling motion continues to show very encouraging trends. As we have now sold approximately 30% of our remaining 26 retail capacity expansion. Secure Cabinet Express our standardized business ready colocation offering, is continuing to gain traction with cabinet orders up more than 30% year over year. it is a great example of how we are simplifying the customer buying experience to accelerate growth. On Solve Smarter, we are turning the demands of enterprise AI into products customers can deploy today. Most enterprises know what they want to build. The infrastructure to support it at scale is the challenge. Our expanded collaboration with Cisco and NVIDIA tackles this head on by bringing standardized AI factory blueprints and automation across our global IBX network. And through our new partnership with Presidio, customers can test and validate before they scale. that is how we help enterprises move faster with greater certainty Data sovereignty is a challenge for enterprises. And an opportunity for Equinix. Most networks were built for conformance, not compliance. Our new Fabric Geo Zones offering was built for both. Traffic either flows along compliant paths or it is blocked. Sovereignty, is no longer a configuration It is a property of the network itself. Fabric GeoZones is in preview with a approximately 80 enterprises around the world. These are 2 examples of our customer focused product road map. And we are just getting started. This week, we welcomed Chris Audi to Equinix as our Chief Product Officer. He brings extensive experience to the role, most recently as HashiCorp's Chief Product and Technology Officer for Infrastructure and AI. His strong background spanning product, software, and infrastructure will help us accelerate and expand our solution portfolio. We also named Bruce Owen a 16-year Equinix veteran with deep experience across our business as EVP Global Markets. Overseeing our 3 regions. Chris and Bruce strengthen our leadership team at exactly the right moment. Turning to Build Bolder, our teams continue to execute at a high level. Our acceleration of more than 7 thousand cabinets from 2027 into Q4 26 reflects our confidence in our ability to deliver. As well as our commitment to bring capacity online faster to meet growing demand. This quarter, we announced significant new projects in Chicago, Istanbul and Johor. With more expected throughout the remainder of the year. We now have 52 major projects underway across 33 markets I also want to take a moment to emphasize something that matters deeply to us as we expand. In the communities where we build and operate, we are not a visitor. We are a neighbor. And that distinction has defined our approach for nearly 30 years as we have built the essential infrastructure that underpins the everyday experiences and connections people depend upon. Across all of our markets, we engage early and transparently We listen and adapt to local needs and we invest for the long term because we are there to stay. that is how we build trust. it is what makes communities stronger over time. And it is why we have been able to consistently execute our projects on time and at scale. This quarter, we published our U. S. Community principles, They reflect the standards that have long guided our approach and that we hold ourselves to. This includes funding energy and grid infrastructure costs directly, investing in renewable energy and water use efficiency, and creating meaningful opportunities for the people around us from construction and skilled trades jobs to pathways for veterans to programs that build the next generation of technical talent. Based on our long time leadership in these areas, I was in Washington, D. C. Last week to support the Ratepayer Protection Pledge. And our commitment to being a good neighbor extends to every community. We are part of around the world. Let me close by saying Q2 was an exceptionally strong quarter. And reflects a business that is hitting its stride. We have been deliberate about our strategy focused in our execution, and disciplined in where we invest. Now as the market evolves and expands, our efforts are paying off. And our decision to raise our guidance and put more capital to work reflects our confidence going forward. I will now turn it over to Olivier to take you through the financials in detail. Olivier C. Leonetti: Thank you, Adaire. Our unique positioning and strong execution are evident in our performance. And raised outlook through 2029. We are driving momentum across our business with demand strength in every vertical, product, and channel. Looking at Q2 results on Slide 7, of our earnings presentation. With growth rates discussed on a normalized and constant currency basis. Recurring revenues increased 11% year over year, reflecting the underlying strength of our business and record bookings converted into revenue. Total revenues increased 16% year over year. As expected, we closed 134 megawatts of Xcel leases, including Hampton, which contributed approximately $120 million in nonrecurring fees. Our adjusted EBITDA margin was 53% up 300 basis points year over year. This is a result of continued cost discipline, scaling our operating leverage and our scale leasing fees. Excluding scale leasing fees, our adjusted EBITDA margin was up approximately 150 basis points year over year. And AFFO per share increased 18% year over year. Our non financial metrics also continue to demonstrate momentum and our strategy in action. We added a record 9.7 thousand net interconnections We added 4.2 thousand net cabinet billings. And our backlog sold but not yet installed is at a record level. Churn was 1.8%, primarily due to our renewal process execution and some delayed churn. We expect to be near the lower end of our typical 2 to 2.5 range for the back half of the year. On Slide 10, you see that our capital investments deliver very strong returns. Our 194 stabilized assets are collectively 82% utilized and generated a 27% cash on cash yields on growth PP and E. We continue to achieve these upsized returns on assets we have delivered in recent years. Reflecting our focus on offering differentiated infrastructure and services to our customers. On Slide 11, total capital expenditures for the quarter were about $1.6 billion approximately 90% of was invested in capacity expansion. Since the last earnings call, we have opened new projects in Madrid, Milan and Silicon Valley. Turning to our capital structure on Slide 12. We have approximately $7.7 billion of available liquidity, including our recently upsized revolving credit facility and our net leverage was 3.6 times annualized adjusted EBITDA. We continue to execute on our access to lower cost capital around the world to fund our growth. Now please refer to Slide 14 to 18 for an updated view of our 2026 guidance. With all growth rates on a normalized and constant currency basis. Based on the robust environment, and the team execution, we are raising 2026 guidance for the second consecutive quarter. The raise reflects our recent outperformance and a stronger outlook for the rest of the year. For the third quarter, we anticipate continuing strength including MRR growth of 9 to 11% year over year, total revenue growth of 10% to 12% year over year and then adjusted EBITDA margin of 51%. For the full year, with dollar amounts discussed prior to FX adjustments. We are raising total revenue guidance by $100 million improving our expected growth range to 11% to 12%. We expect MRR growth to be around 10% at the end of our prior range. We are raising adjusted EBITDA guidance by $62 million resulting in an adjusted EBITDA margin of approximately 51% a 200 basis point improvement over last year. We are raising AFFO guidance by approximately $50 million driving an increase in our expected AFFO per share growth range to 10% to 12%. And excluding real estate acquisition and xScale, we expect total capital expenditures to be $5 to $6 billion as we accelerate capacity expansion into the year. As Adair mentioned, a significant portion of our planned capacity additions for the remainder of 2026 are already committed through bookings and pre sales providing increased visibility into future growth and returns. Now turning to our long term outlook update. We are clearly in a stronger environment and the team is executing very well. We have been closely analyzing the market opportunity to calibrate where we stand and where we are headed Through this, we have gained even stronger conviction in our strategy positioning and trajectory. With AI as an accelerant, we expect demand to remain robust as customers modernize their technology architectures and quickly singly orchestrate their strategies on our platform. Scaling our business will continue to be a focus, driving revenues, controlling expenses and enhancing our margins. Our competitive advantages drive returns on development that are unmatched. Recognizing the strength we have developed a demand driven capacity expansion plan that accelerates delivery timeline, enables deployment flexibility in response to demand signals, minimizes earnings drag and maximizes our long term growth profile. Demand is clearly exceeding the assumptions in our prior long term outlook. Bookings pre sales, backlog and pricing are strong, and we are uniquely positioned to meet the durable demand by deploying capital over the next few years. We expect 5 billion to $7 billion of capital expenditures annually from 2027 to 2029 with the vast majority focus on capacity expansion delivered into a target market where our value proposition is increasingly differentiated. More than 80% of this expansion will be our top 25 major global metros. The result will be a higher growth portfolio built over 30 years that is uniquely fit to serve the new technology era. And as always, our balance sheet and diversified capital program are critical differentiators. In combination with significant retained cash flow, we will continue to access lower cost sources of capital to fund our robust growth opportunity. Referring to Slide 19, we expect the following for 2027 through 2029. Total revenue growth ranging from 10% to 13% per year beginning the period at the low end of this range and accelerating as the benefit of our capacity expansion plan builds. Adjusted EBITDA margin to reach 53% or higher by 2029. AFFO per share growth in the 9% to 12% range per year. Capital expenditures in the EUR 5 billion to 7 billion range per year excluding real estate acquisitions, and Xcel. And dividend growth to approximate AFFO per share growth. Utilizing our balance sheet, we will achieve this with only a moderate leverage increase allowing us to maintain our current and critically important investment grade credit ratings. In conclusion, demand is stronger and more durable The team is executing Our confidence in future growth has increased and we are accelerating capacity expansion to capture the in front of us. And now turn the call back over to Adaire. Adaire Rita Fox-Martin: Thanks, Olivier. The first half of 26 has been a strong 1. And it has set the stage for something bigger. The demand signals are clear, Our strategy is working. And the investments we are making today are designed to drive sustainable long term growth well above our prior expectations. We will maintain our relentless focus on disciplined execution that solves the challenges our customers face and creates value for our shareholders. And our team stands ready to the opportunities ahead. With that, let's open the line for questions. Operator: Thank you. We will now begin the Q&A session. If you would like to ask a second question, Our first question comes from Eric Luebchow with Wells Fargo. Your line is open. Eric Luchow: Great. Thanks for taking the question. No, Adaire, I just wanted to get your view on the long term guidance raise Obviously, a huge change from last year. So maybe you could just talk through a high level of what you are seeing in the market that is given you the degree of confidence to raise CapEx this much And as we think about the forward growth mechanism for revenue of 10 to 13%, I think previously you had talked more about it being more based on MRR per cabinet growth than installed or billable cabinets. Has that changed at all based on the CapEx increase and based on the pipeline that you talked about? Your remarks? Thank you. Adaire Rita Fox-Martin: Thanks. Thanks so much for the question, Erik. Let me maybe start with the view from this year to last. I think that we have seen definitely acceleration in the AI infrastructure cycle as I mentioned in my prepared remarks and that plays directly to the strength of Equinix. We are uniquely positioned I believe to enable our customers and our partners to execute their AI strategies, particularly as they shift to inferencing. We are pretty rapidly seeing customers become much more sophisticated in how they are pursuing their AI requirements. I think it is fair to say that broadly we have a broad depth and breadth of customer demand across our portfolio. So AI is an accelerant to the ongoing digitization activities of our customers. In Q2, we saw that the vast majority of our largest deals were driven by AI workloads similar to what we have seen in the previous quarters. We also spoke about the execution of our team, how our team has performed exceptionally well. I think if I look at the difference between this time last year execution is essentially better across the board. James activity, how we are operating, margin and cash flows, capacity expansion, how we are financing our growth, I mentioned externally the market dynamics are changing to move inference ahead of perhaps where we initially scheduled or intended that it would be at and that is much stronger than everything we saw a year ago. We have been very thoughtful, we have gone back and looked at everything, including the shape of our customer demand, including the optimization of things like our expenses, our CapEx and our finance plans. So our revised outlook I think reflects more than a strong quarter It reflects a market opportunity that has materially improved over the past 12 months And this has been a huge collective effort, I would like to just take a moment to thank our team for all of the work that they have done in this year. Olivier C. Leonetti: 1 additional point that it is important, Erik, we put that in our prepared remarks. Most of the deployment of the capital, 80% of it, will be on our top 25 metros. Markets where we that we understand well, where we have a competitive advantage, where demand is higher than supply and we have already today a strong ecosystem. With the utility providers, with the global contractors, with the community So we feel today as comfortable as it could be about this updated long term guidance. Operator: The next question comes from Ari Klein with BMO Capital Markets. Your line is open. Ari Klein: Adaire, with AI strategies being implemented, are you seeing any changes in underlying deal metrics or compositions Are different markets more in demand? What about deal sizes and interconnect attach rates, especially with the strong net adds this quarter? Thank you. Adaire Rita Fox-Martin: Thank you. Thanks, Aryeh for the question. I think we are definitely seeing some changes in terms of deal structures. Certainly, the density of our deals is moving upwards as customers seek to secure the capacity that they need for their energy and their compute future. So that is absolutely 1 change that we are seeing in the deal mix. As far as interconnection is concerned, as you can see from our prepared remarks, we had a very strong interconnection quarter adding over 9.7 thousand net adds and interconnection revenue growing at around 9%. And as customers come onto our platform in the first instance, then we see our interconnection revenue increase as that progresses. I think even in the face of, you know, increasing footprint sizes from our customers, our pricing has remained very firm. And we are managing to secure the yields that you have come to see from Equinix over the past. Olivier C. Leonetti: I would say, Aryeh, to add and Adaire covered that in a prepared remark. The complexity of the ecosystem we are serving is more is increasing more than ever before. Cloud providers, Neo Cloud, enterprise AI model, all of this trend is playing to Equinix strength. Operator: Thank you. The next question comes from Matt Niknam with Truist. Your line is open. Matt Niknam: Hey, thanks so much for taking the question. Congrats on the quarter. Maybe related on interconnect, maybe Adaire, if you can speak to where you are seeing some of this increased demand coming from? And if, in fact, you have a product that is in such high demand, how do you think about the opportunity for maybe incremental pricing actions on interconnect over the longer term? Thanks. Adaire Rita Fox-Martin: Thanks for your remarks, Matt. Appreciate that. So just reiterating again, you saw the demand reflected in the ads to our interconnection franchise. I think this is 1 of the unique value propositions of Equinix 1 of the things that continues to differentiate us as a company. We have of course added capabilities to our interconnection portfolio through our fabric product suite. Most recently the fabric geo zones which support sovereignty requirements and you know, I think in last quarter, mentioned that 20 of customers were in preview with product, we already have 80 in preview this quarter with our products. Fabric Intelligence provides additional capabilities of severity and management for our customers. So I think that there is the opportunity here to really look at the compelling value proposition that Equinix offers and then the opportunity to elevate that value proposition for our customers through some of these fabric offerings it is 1 of the jobs that Chris will have on day 1, which today is actually his day 1 as he gets started as our chief product officer. Because we can see some very significant growth rates in FCR, for example, our cloud router 170% up year on year in bookings there. And some of that driven through non colo customers, which is also an proposition for us. So, this I think is an exciting area for us to continue to mine. Operator: Thank you. The next question comes from Frank Louthan with Raymond James. Your line is open. Frank Louthan: Great. Thank you. When we are looking at the new guide and kind of going forward, what is the right level to think of the normal for non recurring revenue and the long term guidance as a percentage of total revenue, how should we think about that with the new guidance level you set? Thanks. Olivier C. Leonetti: You should assume the traditional 5% of total revenue that would be a good moderate assumption. Thank you. Operator: The next question comes from Michael Rollins with Citi. Your line is open. Michael Rollins: Thanks and good afternoon. So within the new guidance for revenue, can you share how each of the 3 geographic regions are progressing How they should grow each relative to the total portfolio? And as you invest more in the business, is your expectation that revenue growth within this range should be similar in each year? Or do you see it accelerating? How does the higher investment levels kind of come through the P and L if you look over the next 3 plus years? Thanks. Adaire Rita Fox-Martin: Thanks, Michael. I will take the first part and Olivier, perhaps will take the second part of the question. I think 1 of the benefits that we have as Equinix is the diversification of our customer base and of our portfolio. We have no concentration risk in terms of how our revenue is deployed across both our regions the industries that we serve and the product groups and cohorts that we manage. As you can see from the deck the Page 8 of the deck that accompanied earnings, we had a very strong performance in The Americas as it related to revenue performance. And even if we normalize for Hampton inside that performance for the transaction the NRR transaction that concluded in Q2, we still have low teens double digit growth in our Americas portfolio. And we had an amazing quarter in APAC and I think that is beginning to pick up for us. A lot of tremendous activity from the teams there, in terms of bringing new customers into the Equinix portfolio. And EMEA continues to form exceptionally well, not with that 2 of our main metros in EMEA, Frankfurt and Amsterdam are highly constrained metros. So this balance, think, is an important aspect of the overall portfolio that we manage. Think we will continue to see this kind of growth in The Americas given that much of the AI activity and company base exists here in the first instance. But as we move across the different regions, can see that rapidly following In APAC for example, with local vendors moving into the Southeast Asia market in particular, And then with EMEA, it might have a different feel on it in that our growth portfolio may be underpinned by the offers that we have around sovereignty, which are particularly relevant to EMEA customers and clients. I would say it is strong balance following what you see already in the regional performance. Olivier, just on that breakdown? Olivier C. Leonetti: Yes. If you look, Michael, at the range of growth per year, we should expect the growth to be higher at the end of the planning period by 2029. This is going to be a by product of our CapEx deployment and you should expect AFFO to follow the revenue growth. You could have a bit of volatility due to the lumpiness of NRR in a particular year, but that will be the overall trend. Another comment also, we think it is important in term of CapEx deployment at stabilization, which is about 3 to 4 years post-RFS, we expect to deliver the traditional 25% cash on cash returns that we have mentioned now for a number of quarters and years. Operator: Thank you. Next question comes from Jonathan Atkin with RBC. Your line is open. Jonathan Atkin: Jonathan? You have hit your mute button. Thank you. I am interested looking at the forward guidance in the contribution of things like renewal spreads. To the upside guidance on a multiyear basis. And then as we think about the CapEx plan going forward, what are the financing tools available to you? And how do you think about leverage Okay. Adaire Rita Fox-Martin: Thanks for the question, Jonathan. I will take the first part of the question and then I will pass the second on the opportunities to raise and fund this to Olivier. If we look at the P and Q side of the equation, if I look at P side, I can absolutely see healthy and very firm pricing. And you see that reflected in the revenue growth that we have posted. And then on the q side, our teams are focused on delivering critical capacity and accelerating that delivery. And doing this against this growing demand backdrop From a pricing perspective, our per kilowatt pricing is highly attractive because of the superior value that we are delivering our customers. And our net pricing actions were strong in Q2 and they continue to trend very, very favorably. However, we recognize that we are in a demand and supply continuum that is absolutely in our favor and we definitely see meaningful mark to market opportunity over the time period of our long range guide. And this is probably particularly true when we think about highly constrained markets such as those that I have mentioned already and adding a couple of US ones like Ashburn to that picture. So this is something that the team are consciously looking at as we look at bringing on additional capacity in our top 25 metros. Olivier C. Leonetti: Going back to your debt question, Jonathan, our balance sheet is a strategic differentiator. We want to keep it this way. Keeping investment grade rating is really a core pillar to our capital structure strategy. We would expect to fund the growth through 2 levers: 1, retain cash flow. As you know, we have a payout ratio in the 50% range. So we will have a sizable retained cash flow and the rest of the financing will be done through debt. We are today looking to use the lever, which will have the most favorable cost of capital. If you were to look at as a result of this, leverage, which was part of your question, we would expect leverage to increase by about a turn between now and the end of the planning period and to finalize the blended cost of capital should increase by about 150 basis points. Again blended Jonathan. Operator: Thank you. The next question comes from Nicholas Del Deo with MoffettNathanson. Your line is open. Nicholas Del Deo: Thanks for taking my question. Can you talk about the steps you are taking from an operational and risk management perspective to ensure that you can effectively deploy as much CapEx as you are budgeting over the next few years? And can adjust if realized demand does not match your forecast for some reason? And I guess when you look out to 2029, do you think the capacity that you will have online will largely match demand? Do you think you will still be short supply relative to what customers desire? Thank you. Adaire Rita Fox-Martin: that is a great question. Thank you. So I guess as we look out to 2029, our job is to be very thoughtful about how we deploy our CapEx how we deploy it in order for highest value, how we deploy it in those metros where we know we will have maximal opportunity to maximize our returns and that, of course, we are familiar with because we operate in those metros today. Understand the customer landscape, the customer layout and so on. So as we look forward, we are striking, I think, the balance between you know, the opportunity and the managing of managing of our CapEx profile as a company. And when we look to the opportunities to accelerate if we saw more opportunity ahead of us, And, certainly, I think we have given some demonstrated proof of that already. In 2025, we were able to accelerate 20% of our retail footprint into 2026, And in our cabinet projections for Q4 of this year, you can see that we are almost tripling the number of cabinets that we will have available at that timeframe. bringing additional into that Q4 footprint. The team have the opportunity to accelerate. there is some demonstrated proof of doing that. We look at market dynamics I guess, in a very thoughtful way and perhaps through a lens that others do not because we are fairly unique in the market in terms of our target focused customer base. And it is a multifaceted look We have developed somewhat, I think, of a proprietary model to enable us to really understand the demand that sits in front of us a combination of external measures and our internal pipeline, relationship with customers, the fact that we plan alongside them. We think with this long term guide, we have got a very good balance of meeting the demand that sits in the market, meeting the capacity requirements of our customers and managing in a prudent mature way. Operator: Thank you. Our next question comes from Michael Funk with Bank of America. Your line is open. Michael Funk: Yes, great. Thank you for the question. I have some questions around the development spending that you laid out this evening. And in broader context of a lot of the larger amounts we have seen across the space for others also developing large scale So what gives you confidence to increase development spending in current environment? That the durability of supply and demand is going to stick? I will tackle that question. Adaire Rita Fox-Martin: Thank you very much for the question, Michael. So first off, when you look at it from a performance point of view, over the past 4 quarters and particularly since this time last year, we have seen some tremendous performance from our team around our total sales activity, very firm pricing and churn heading downwards. Equinix in the market is unique in many respects on our focus. We are focused on the enterprise sector and we believe in the long term that the enterprise sector will be the beneficiaries of AI technology and that on a broad basis, they will continue their path to digitization. And many things that we are seeing in the market now play directly to our strengths. Because our focus is driven by the unique value proposition that we offer our customers, the very dense interconnected environment ecosystems that are present in our environment already, our global footprint, our presence in metros. Many of the market requirements and opportunities are playing to some of those fundamental strengths that differentiate Equinix. We have been very thoughtful about how we have looked at this opportunity and the durability of this opportunity the durability of this demand, which we believe is persistent. I mentioned in passing in previous answer to the question, we have looked at this through the lens of a proprietary demand model that we have built out because there is no 1 who is really looking at this segment at the market at the level of deep and the level of execution and the level of engagement that we are here Equinix. When we look at it through a number of external lenses, there are a few things that are very strong facts. First of all, we are still very, very early. In enterprise AI, and colo is a durable model as things still settle, is going to be the dominant player, all of these things play out. We are still very, very early, and we are a very durable end state for customers who are having to make decisions today. Secondly, can see that networking demand is also very durable, and it is increasing. And AI requirements are additive to these connectivity budgets. And we can see this in rising spend points on networking requirements of our customers. In addition to those 2 pieces, you have enterprise IT budgets, which are healthy and actually firming. You have enterprise server demand, which notwithstanding price changes there is actually accelerating. We look at the backlog of competitors in the OEMs our big partners in the OEM segment. To understand what their backlog looks like. Data center silicon is accelerating in both volume and price. So a whole series of factors that allow us to be very confident in the durability of the demands that we see based on some of those external factors coupled with our own pipeline our relationship with our customers that has us planning alongside them in a very long term way. And then, of course, I guess the demonstrated proof of our team to execute against that opportunity as they have been over the past 4 quarters. Olivier C. Leonetti: And another 1, Michael, we did also bottom up approach to this planning exercise. And again, 80% plus of our CapEx will be deployed. And I know we keep repeating this, but we think it is important in only 25 metros. Where we understand the ecosystem very well. We have a differentiated value proposition and our relationship with utilities, community and general contractors. Is unique. We think we have bottom up, top down approach which give us a fair amount of confidence on this trajectory. Operator: Thank you. The next question comes from Michael Elias with TD Cowen. Your line is open. Michael Elias: Great. Thanks for taking the question. I want to build on that point in terms of the bottom-up approach. We talk a lot about the demand, but it would be great to talk a bit about the supply side. Recognizing that a lot of this incremental capacity is going to come in those top 25 markets, which are also the most power constrained. You know, how should we think about the percentage of the incremental capacity supported by this CapEx where there is an explicit ESA with the utility, and have visibility into that power. And then also if you could give us color into the visibility that you have on the M&E that you would need and as part of that the skilled labor to deliver the incremental capacity? Any color there would be helpful. Thank you. Adaire Rita Fox-Martin: Alright, thanks very much Michael. it is a really comprehensive question, quite a bit too. So let me unpack it a little. Today, we have 3 gigawatts of land under control. and we are building on about 700 on 700 megawatts of that land right now. We are not speculative land developers or land purchasers. So all of those 3 gigawatts were either certain of our power and that it is contracted or that we have a high degree of confidence that power will be contracted, a very high degree of confidence that power will be contracted. 1 of the things that we are very cognizant of is when we announce And we tend to announce new projects when we have been through some internal gating. And that gating relates to elements like the power, the power and energization of that of that plot of land and also permitting. And that is 1 of the reasons why our projects proceed you know, on time and to scale. To the broader point around the supply chain, in general, we have a very, very strong procurement team who look at this very thoughtfully in a very considered way. As well as very significant and in some cases full 360-degree relationships with our main suppliers. We have, as Olivier has already mentioned, the benefit of a very strong balance sheet. Which has meant that we have been able, where appropriate, to secure our MCE by pre-purchasing elements of the equipment that we need for our data centers. And across our design footprint, our design is fungible. So that gives us the opportunity to move equipment around the entirety of our So we are feeling very comfortable about where we are, on the supply chain dynamics as it relates to the MCE and the other equipment that comes into our data center environment. I would also say that in the markets where we build, and particularly in the North America market, we have a very deep and longstanding relationship with the GCs here. And that is something that has stood us in good stead as, you know, they often have choice about where they will deploy their own capabilities and skills. We are feeling that very confident on the supply side that we have managed all of the risks that we are aware of to the best of our ability putting to work a combination of relationships, process, operation, and our balance sheet where necessary. Olivier C. Leonetti: The final statistic, Michael, a typical data center we will build is about 60 megawatts. So very different than the 1 gigawatt developed by other players in these in those markets? Much more manageable. Operator: Thank you. The next question comes from Michael Ng with Goldman Sachs. Your line is open. Michael Ng: Hi, good afternoon. Thanks for the question. I was wondering if you could talk about the 5 billion to 7 billion annual CapEx plan in terms of IT capacity I think over 3 years at $11 million per megawatt that would translate to about like 1.6 gigawatts out of the 3 gigawatts of developable capacity. Is that a reasonable way to think about it from an IT capacity perspective? And you know, how are you thinking about you know, refilling the land bank you know, at the end of the 3 years will you know, we have 3 gigawatts or more, or will it get worked down? Thank you. Olivier C. Leonetti: Yeah. By the end of the, planning period, we will have about 2 gigawatts still available and this additional CapEx will use about 0.3 gigawatts of power. Operator: Thank you. The next question comes from Cameron McVeigh with Morgan Stanley. Your line is open. Cameron McVeigh: Hi, thank you. I was curious if you are seeing evidence in your leasing pipeline that open weight models are driving incremental private AI or enterprise inference deployments And then secondly, Olivier, now that you have had a few months in the CFO role, curious how you are framing the capital allocation opportunity, what the key priorities might be for you? And then to that point, there any updates on how we should think about the puts and takes to the margin expansion over the next few years? Thanks. Olivier C. Leonetti: That sounds great. Absolutely. In terms of capital allocation, the company has been very prudent. We are not going to change this. In term of leverage. I mentioned that earlier. We are serving exciting markets. We have a different value proposition We believe we can get an exciting return from this deployment of capital. So we will invest mainly internally. If you look at the margin, I am glad you are asking the question. We are targeting a 53% plus EBITDA margin, which would be driven by 3 factors. 1 that Adaire has mentioned extensively which pricing. Demand is oversupply. So pricing would be a lever. And then cost of revenue improvement and SG and A scaling would be also 2 other levers. Let me give you a few colors on this: We are a functionalized organization. So all the elements of the value chain at Equinix are functionalized and functionalization drive standardization allows us also to automate AI, our processes. So we believe that will drive margin expansion and this improvements of the various functions will impact go to market operations and also all the support functions. Thanks, Olivier. Adaire Rita Fox-Martin: So, maybe let me conclude to answer the question around the kind of use cases that we are seeing today in our enterprise customer base, actually there are 4 distinct types of AI use cases that we are seeing today. The first I am going to call stack which is where enterprises are running open models but on private AI infrastructure. They are doing that to cut down their token cost and that is a use case that speaks well to the AI ready data centers of Equinix, the connectivity that we have to the cloud, the partnership with our OEM vendors and so on. The second use case that we see is sovereign. This is where our companies are deploying sovereign AI stacks for data residency and compliance reasons. We are very attractive for that for customers because we have a presence in 36 countries and our fabric capability allows our customers to geofence the traffic into a particular country. The third use case that we are seeing from customers is a batch use case. This is where they are deploying centers of excellence at AI factories for model training, but also for batch inferencing at Equinix. And a lot of this is driven by our opportunity to provide liquid cooling in our facilities. And the fourth use case that we see from our customers is a latency sensitive 1 where the inference stack needs to be present in a metro for latency and also to reduce costs around data backhaul So those are the 4 main use cases that we are seeing a stack use case, a sovereign use case, a batch use case, and a latency-sensitive 1 today in our data centers. Operator: Thank you. That is all the time we have. I will turn it back to Ryan. Thanks, Julie. Ryan C. Burke: I want to thank you all for joining today. We look forward to talking to many of you in the coming days and coming weeks. Take care. Operator: You for your participation. Participants, you may disconnect at this time. Before you buy stock in Equinix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Equinix wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Equinix. The Motley Fool has a disclosure policy. Equinix (EQIX) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Grew monthly recurring revenue 11% on both an as-reported basis and a normalized and constant currency basis year over year Annualized gross bookings grew 23% year over year, marking the second-highest volume on record, contributing to a record backlog Added a record 9,700 net interconnections in the quarter, continuing to extend the company's interconnection leadership Raising full-year 2026 guidance and long-term outlook on stronger demand, bookings, presales and continued execution across the business REDWOOD CITY, Calif., July 29, 2026 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company®, today reported results for the quarter ended June 30, 2026. "We delivered an exceptionally strong Q2. Monthly recurring revenue grew double digits for the third straight quarter, new interconnections on our platform hit a record level, and disciplined execution drove robust profit growth," said Adaire Fox-Martin, CEO and President, Equinix. "Our revised 2026 guidance and long-term financial outlook reflect momentum across the business. Customer demand is broad-based and growing, and Equinix is uniquely positioned to serve the networking, cloud and AI infrastructure needs of enterprises around the world." Second-Quarter 2026 Results Summary Revenues Operating Income Net Income Attributable to Common Stockholders and Net Income per Share Attributable to Common Stockholders Adjusted EBITDA AFFO and AFFO per Share Equinix uses certain non-GAAP financial measures, which are described further below and reconciled to the most comparable GAAP financial measures after the presentation of our GAAP financial statements. Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, stock-based compensation and other components of net income or loss from operations, and as a result, is not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data without unreasonable effort. The impact of such adjustments could be significant. Equinix intends to calculate the various non-GAAP financial measures in future periods consistent with how they were calculated for the periods presented within this press release. All per-share results are presented on a fully diluted basis. 2026 Guidance Summary For the third quarter of 2026, the company expects revenues to range between $2.525 and $2.575 billion, an increase of 9 - 11% over the previous year on an as-reported basis, or 10 - 12% on a normalized and constant currency basis. Adjusted EBITDA is expected to range between $1.275 and $1.315 billion, reflecting an adjusted EBITDA margin of approximately 51%. For the full year of 2026, total revenues are expected to range between $10.205 and $10.285 billion, an increase of approximately 11 - 12% over the previous year on both an as-reported and a normalized and constant currency basis. Adjusted EBITDA is expected to range between $5.210 and $5.270 billion, reflecting an adjusted EBITDA margin of approximately 51%, an approximate +2% expansion over the previous year. AFFO is expected to range between $4.240 and $4.300 billion, an increase of 13 - 14% over the previous year on an as-reported basis, or 12 - 13% on a normalized and constant currency basis. AFFO per share is expected to range between $42.69 and $43.29, an increase of 11 - 13% over the previous year on an as-reported basis, or 10 - 12% on a normalized and constant currency basis. Total capital expenditures are expected to range between $5.000 and $6.000 billion. Long-Term Outlook Summary (2027-2029) The updated outlook reflects stronger-than-expected demand, accelerating bookings and presales activity, increased visibility from committed capacity, firm pricing and continued confidence in achieving attractive returns on invested capital. Q2 2026 Business Highlights Delivered $424 million of annualized gross bookings. Added a record 9,700 net interconnections. Announced the global expansion of Equinix Fabric Geo Zones, the industry's first network-level data sovereignty solution. Expanded collaboration with Cisco and NVIDIA to help enterprises accelerate AI deployment through standardized AI factory architectures, secure infrastructure and real-world testing environments across Equinix's global data center footprint. Accelerated capacity expansion to meet growing customer demand, with nine new projects added since April and 52 projects underway across 33 markets worldwide. Published U.S. Community Principles and signed the Ratepayer Protection Pledge, reinforcing the company's longtime commitment to investing in communities in ways that address their needs and create lasting value. Further strengthened leadership team with the appointment of Chris Audie as Chief Product Officer and Bruce Owen as Executive Vice President, Global Markets. Ranked #1 for Innovation in The Wall Street Journal's inaugural Best Companies for the Future, underscoring the company's strong positioning for long-term success in an AI-driven economy. Q2 2026 Results Conference Call and Replay Information Equinix will discuss its quarterly results for the period ended June 30, 2026, along with its future outlook, in its quarterly conference call on Wednesday, July 29, 2026, at 5:30 p.m. ET (2:30 p.m. PT). A simultaneous live webcast of the call will be available on the company's Investor Relations website at www.equinix.com/investors. To hear the conference call live, please dial 1-517-308-9482 (domestic and international) and reference the passcode EQIX. A replay of the call will be available one hour after the call through Wednesday, September 30, 2026, by dialing 1-866-427-6395 and referencing the passcode 2026. In addition, the webcast will be available at www.equinix.com/investors (no password required). Investor Presentation and Supplemental Financial Information Equinix has made available on its website a presentation designed to accompany the discussion of Equinix's results and future outlook, along with certain supplemental financial information and other data. Interested parties may access this information through the Equinix Investor Relations website at www.equinix.com/investors. Additional Resources Equinix Investor Relations Resources About Equinix Equinix, Inc. (Nasdaq: EQIX) shortens the path to boundless connectivity anywhere in the world. Its digital infrastructure, data center footprint and interconnected ecosystems empower innovations that enhance our work, life and planet. Equinix connects economies, countries, organizations and communities, delivering seamless digital experiences and cutting-edge AI—quickly, efficiently and everywhere. Non-GAAP Financial Measures Equinix provides all information required in accordance with generally accepted accounting principles ("GAAP"), but it believes that evaluating its ongoing results of operations may be difficult if limited to reviewing only GAAP financial measures. Accordingly, Equinix also uses non-GAAP financial measures to evaluate its operations. Non-GAAP financial measures are not a substitute for financial information prepared in accordance with GAAP. Non-GAAP financial measures should not be considered in isolation, but should be considered together with the most directly comparable GAAP financial measures. As such, Equinix provides a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures. Investors should note that the non-GAAP financial measures used by Equinix may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as those of other companies. Investors should therefore exercise caution when comparing non-GAAP financial measures used by Equinix to similarly titled non-GAAP financial measures of other companies. Equinix's primary non-GAAP financial measures include Adjusted EBITDA and Adjusted Funds from Operations ("AFFO") as described below. Equinix presents these measures to provide investors with additional tools to evaluate its results in a manner that focuses on what management believes to be its core, ongoing business operations. These measures exclude items which Equinix believes are generally not relevant to assessing its long-term performance. Both measures eliminate the impacts of depreciation and amortization, which are derived from historical costs and which Equinix believes are not indicative of current or future expenditures, and other items for which the frequency and amount of charges can vary based on the timing and significance of individual transactions. Equinix believes that presenting these non-GAAP financial measures provides consistency and comparability with past reports and that if it did not provide such non-GAAP financial information, investors would not have all the necessary data to analyze the company effectively. Adjusted EBITDA is used by management to evaluate the operating strength and performance of its core, ongoing business, without regard to its capital or tax structures. It also aids in assessing the performance of, making operating decisions for, and allocating resources to its operating segments. In addition to the uses described above, Equinix believes this measure provides investors with a better understanding of the operating performance of the business and its ability to perform in subsequent periods. Equinix defines adjusted EBITDA as net income excluding: income tax expense interest income interest expense other income or expense gain or loss on debt extinguishment depreciation, amortization and accretion expense stock-based compensation expense restructuring and other exit charges, which primarily include employee severance, facility closure costs, lease or other contract termination costs and advisory fees related to the realignment of our management structure, operations or products and other exit activities impairment charges transaction costs gain or loss on asset sales AFFO is derived from Funds from Operations ("FFO") calculated in accordance with the standards established by the National Association of Real Estate Investment Trusts. Both FFO and AFFO are non-GAAP measures commonly used in the REIT industry. Although these measures may not be directly comparable to similar measures used by other companies, Equinix believes that the presentation of these measures provides investors with an additional tool for comparing its performance with the performance of other companies in the REIT industry. Additionally, AFFO is a performance measure used in certain of the company's employee incentive programs, and Equinix believes it is a useful measure in assessing its dividend-paying capacity, as it isolates the cash impact of certain income and expense items and considers the impact of recurring capital expenditures. Equinix defines FFO as net income attributable to common stockholders excluding: gain or loss from the disposition of real estate assets depreciation and amortization expense on real estate assets adjustments related to unconsolidated joint ventures and non-controlling interests Equinix defines AFFO as FFO adjusted for: depreciation and amortization expense on non-real estate assets accretion expense stock-based compensation expense stock-based charitable contributions restructuring and other exit charges, as described above impairment charges transaction costs impacts of straight-lining installation revenue impacts of straight-lining rent expense impacts of straight-lining contract costs amortization of deferred financing costs and debt discounts and premiums gain or loss from the disposition of non-real estate assets gain or loss on debt extinguishment an income tax expense adjustment, which represents the non-cash tax impact due to changes in valuation allowances, uncertain tax positions and deferred taxes recurring capital expenditures, which represent expenditures to extend the useful life of data centers or other assets that are required to support current revenues net income or loss from discontinued operations, net of tax adjustments from FFO to AFFO related to unconsolidated joint ventures and non-controlling interests Equinix provides normalized and constant currency growth rates for revenues, adjusted EBITDA, AFFO and AFFO per share. These growth rates assume foreign currency rates remain consistent across comparative periods. Revenue growth rates exclude the impact of net power pass-through, acquisitions, divestitures and the Equinix Metal® wind-down. Adjusted EBITDA growth rates exclude the impact of acquisitions, divestitures and integration costs. AFFO growth rates exclude the impact of acquisitions and related financing costs, divestitures, integration costs and balance sheet remeasurements. AFFO per share growth rates exclude the impact of integration costs and balance sheet remeasurements. Equinix presents cash cost of revenues and cash operating expenses (also known as cash selling, general and administrative expenses or cash SG&A). These measures exclude depreciation, amortization, accretion and stock-based compensation, which are not good indicators of Equinix's current or future operating performance, as described above. Equinix also presents free cash flow and adjusted free cash flow. Free cash flow is defined as net cash provided by (used in) operating activities plus net cash provided by (used in) investing activities excluding the net purchases of and distributions from equity investments. Adjusted free cash flow is defined as free cash flow excluding any real estate and business acquisitions, net of cash and restricted cash acquired. These measures are presented in order for lenders, investors and the industry analysts who review and report on Equinix to better evaluate Equinix's cash spending levels relative to its industry sector and competitors. Forward-Looking Statements This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the current inflationary environment; foreign currency exchange rate fluctuations; stock price fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of building and operating IBX® and xScale® data centers, including those related to sourcing suitable power and land, and any supply chain constraints or increased costs of supplies; the challenges of developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT; risks related to regulatory inquiries or litigation; and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release. $ 22.57 $ 19.59(1)The geographic split of our revenues on a services basis is presented below:Americas Revenues:Colocation$ 747$ 731$ 654$ 1,478$ 1,290Interconnection256251231507460Managed infrastructure565762113125Other874157Recurring revenues1,0671,0469512,1131,882Non-recurring revenues1844553229123Revenues$ 1,251$ 1,091$ 1,004$ 2,342$ 2,005EMEA Revenues:Colocation$ 633$ 613$ 572$ 1,246$ 1,139Interconnection10510696211183Managed infrastructure4041388173Other2829265753Recurring revenues8067897321,5951,448Non-recurring revenues3938357762Revenues$ 845$ 827$ 767$ 1,672$ 1,510Asia-Pacific Revenues:Colocation$ 392$ 386$ 359$ 778$ 701Interconnection928980181157Managed infrastructure1617173334Other44488Recurring revenues5044964601,000900Non-recurring revenues2530255566Revenues$ 529$ 526$ 485$ 1,055$ 966Worldwide Revenues:Colocation$ 1,772$ 1,730$ 1,585$ 3,502$ 3,130Interconnection453446407899800Managed infrastructure112115117227232Other4040348068Recurring revenues2,3772,3312,1434,7084,230Non-recurring revenues248113113361251Revenues$ 2,625$ 2,444$ 2,256$ 5,069$ 4,481(2)We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-based compensation as presented below:Cost of revenues$ 1,230$ 1,186$ 1,084$ 2,416$ 2,168Depreciation, amortization and accretion expense(421)(405)(361)(826)(704)Stock-based compensation expense(19)(16)(16)(35)(30)Cash cost of revenues$ 790$ 765$ 707$ 1,555$ 1,434(3)We define cash gross profit as revenues less cash cost of revenues (as defined above).(4)We define cash sales and marketing expense as sales and marketing expense less depreciation, amortization and stock-based compensation as presented below. We define cash general and administrative expense as general and administrative expense less depreciation, amortization and stock-based compensation as presented below. We define cash operating expense as selling, general, and administrative expense less depreciation, amortization, and stock-based compensation. We also refer to cash operating expense as cash selling, general and administrative expense or "cash SG&A".Sales and marketing expense$ 239$ 241$ 221$ 480$ 450Depreciation and amortization expense(51)(52)(50)(103)(97)Stock-based compensation expense(26)(27)(25)(53)(47)Cash sales and marketing expense162162146324306General and administrative expense462444451906889Depreciation and amortization expense(85)(87)(91)(172)(181)Stock-based compensation expense(100)(85)(86)(185)(163)Cash general and administrative expenses277272274549545Cash operating expense$ 439$ 434$ 420$ 873$ 851(5)We define adjusted EBITDA as net income excluding income tax expense or benefit, interest income, interest expense, other income or expense, gain or loss on debt extinguishment, depreciation, amortization, accretion, stock-based compensation expense, restructuring and other exit charges, impairment charges, transaction costs, and gain or loss on asset sales as presented below:Net income$ 477$ 415$ 367$ 892$ 710Income tax expense (benefit)46563810287Interest income(36)(41)(52)(77)(99)Interest expense151148135299257Other (income) expense28(1)727(2)(Gain) loss on debt extinguishment(1)—(1)(1)(1)Depreciation, amortization and accretion expense5575445021,101982Stock-based compensation expense145128127273240Restructuring and other exit charges6621212Impairment charges1721191Transaction costs383119(Gain) loss on asset sales3(20)—(17)—Adjusted EBITDA$ 1,396$ 1,245$ 1,129$ 2,641$ 2,196Americas6415164661,157909EMEA456424399880764Asia-Pacific299305264604523Adjusted EBITDA$ 1,396$ 1,245$ 1,129$ 2,641$ 2,196(6)We define cash gross margins as cash gross profit divided by revenues.(7)We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.(8)FFO is defined as net income or loss attributable to common stockholders, excluding gain or loss from the disposition of real estate assets, depreciation and amortization expense on real estate assets and adjustments for unconsolidated joint ventures' and non-controlling interests' share of these items.Net income$ 477$ 415$ 367$ 892$ 710Net (income) loss attributable to non-controlling interests2—121Net income (loss) attributable to common stockholders479415368894711Adjustments:Real estate depreciation361351312712609(Gain) loss on disposition of real estate assets3(20)1(17)1Adjustments for FFO from unconsolidated joint ventures111282315FFO attributable to common stockholders$ 854$ 758$ 689$ 1,612$ 1,336(9)AFFO is defined as FFO adjusted for depreciation and amortization expense on non-real estate assets, accretion, stock-based compensation, stock-based charitable contributions, restructuring and other exit charges, impairment charges, transaction costs, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, gain or loss from the disposition of non-real estate assets, gain or loss on debt extinguishment, an income tax expense adjustment, recurring capital expenditures, net income or loss from discontinued operations, net of tax, and adjustments from FFO to AFFO for unconsolidated joint ventures' and non-controlling interests' share of these items.FFO attributable to common stockholders$ 854$ 758$ 689$ 1,612$ 1,336Adjustments:Installation revenue adjustment8881610Straight-line rent expense adjustment(4)45—8Contract cost adjustment(11)(15)(10)(26)(17)Amortization of deferred financing costs and debt discounts 7761411Stock-based compensation expense145128127273240Stock-based charitable contributions3—333Non-real estate depreciation expense139138137277271(Gain) loss on disposition of non-real estate assets————2Amortization expense51525010398Accretion expense adjustment63394Recurring capital expenditures(49)(32)(55)(81)(81)(Gain) loss on debt extinguishment(1)—(1)(1)(1)Restructuring and other exit charges6621212Transaction costs383119Impairment charges 1721191Income tax expense adjustment(8)—4(8)10Adjustments for AFFO from unconsolidated joint ventures2(2)——3AFFO attributable to common stockholders$ 1,168$ 1,065$ 972$ 2,233$ 1,919(10) Following is how we reconcile from adjusted EBITDA to AFFO:Adjusted EBITDA$ 1,396$ 1,245$ 1,129$ 2,641$ 2,196Adjustments:Interest expense, net of interest income(115)(107)(83)(222)(158)Amortization of deferred financing costs and debt discounts 7761411Income tax expense(46)(56)(38)(102)(87)Income tax expense adjustment(8)—4(8)10Straight-line rent expense adjustment(4)45—8Stock-based charitable contributions3—333Contract cost adjustment(11)(15)(10)(26)(17)Installation revenue adjustment8881610Recurring capital expenditures(49)(32)(55)(81)(81)Other income (expense)(28)1(7)(27)2Adjustments for (gain) loss on asset dispositions——1—3Adjustments for unconsolidated JVs and non-controlling interests151092519AFFO attributable to common stockholders$ 1,168$ 1,065$ 972$ 2,233$ 1,919(11)The shares used in the computation of basic and diluted FFO and AFFO per share attributable to common stockholders is presented below:Shares used in computing basic net income per share, FFO per share and AFFO per share (in thousands)98,64198,39297,83598,51697,674Effect of dilutive securities:Employee equity awards (in thousands)495335215415294Shares used in computing diluted net income per share, FFO per share and AFFO per share (in thousands)99,13698,72798,05098,93197,968Basic FFO per share$ 8.66$ 7.70$ 7.04$ 16.36$ 13.68Diluted FFO per share$ 8.61$ 7.68$ 7.03$ 16.29$ 13.64Basic AFFO per share$ 11.84$ 10.82$ 9.94$ 22.67$ 19.65Diluted AFFO per share$ 11.78$ 10.79$ 9.91$ 22.57$ 19.59 View original content to download multimedia:https://www.prnewswire.com/news-releases/equinix-reports-second-quarter-results-raises-2026-guidance-and-long-term-outlook-302838047.html

Interested in Equinix, Inc.? Here are five stocks we like better. Equinix raised its 2026 and long-term outlook after second-quarter recurring revenue grew 11% year over year, bookings rose 23% to $424 million, and record interconnection additions reached 9,700. AFFO per share increased 18%, while adjusted EBITDA margin expanded to 53%. The company is accelerating data-center capacity expansion to meet AI and enterprise demand, including delivering more than 7,000 cabinets ahead of schedule. Equinix has 52 major projects underway across 33 markets and controls 3 gigawatts of land capacity. Management said demand is broadening beyond traditional cloud customers to enterprise AI, sovereign infrastructure and service providers; Fabric Cloud Router bookings surged 170% year over year. Through 2029, Equinix targets annual revenue growth of 10% to 13% and AFFO-per-share growth of 9% to 12%. 3 Ways to Play the Data Center Land Grab Equinix (NASDAQ:EQIX) raised its full-year and long-term outlook after reporting accelerating recurring-revenue growth, record interconnection additions and strong bookings in the second quarter, as the company said AI-related infrastructure demand is broadening across enterprise customers and service providers. CEO and President Adaire Fox-Martin said the “AI-driven infrastructure cycle continues to accelerate” and is supporting demand for neutral, interconnected and sovereign infrastructure. Monthly recurring revenue, measured on a normalized and constant-currency basis, grew 11% year over year, marking the company’s third consecutive quarter of double-digit growth. → This Tiny AI Supplier Could Be More Important Than the Chipmakers 3 REITs to Watch as AI Data Center Spending Surpasses Office Construction Annualized gross bookings increased 23% year over year to $424 million, Equinix’s second-highest volume on record, while total sales activity including bookings and pre-sales grew more than 30%. The company also added a record 9,700 net interconnections during the quarter and reported record sold-but-not-yet-installed backlog. CFO Olivier Leonetti said total revenue rose 16% year over year in the second quarter, including the effect of 134 megawatts of xScale leases closed during the period. Those transactions included Hampton and contributed approximately $120 million in non-recurring fees. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? 3 Smart Investments If Interest Rates Stay Higher for Longer Adjusted EBITDA margin reached 53%, up 300 basis points from a year earlier. Excluding xScale leasing fees, the adjusted EBITDA margin increased about 150 basis points year over year, according to Leonetti. Adjusted funds from operations, or AFFO, per share grew 18% on a normalized and constant-currency basis. Equinix raised its 2026 guidance for the second consecutive quarter. The company now expects: Total revenue growth of 11% to 12% on a normalized and constant-currency basis. Monthly recurring revenue growth of about 10%, at the high end of its prior range. An adjusted EBITDA margin of approximately 51%, representing a 200-basis-point improvement from the prior year. AFFO per-share growth of 10% to 12%. Capital expenditures of $5 billion to $6 billion, excluding real estate acquisitions and xScale. → Innovative ETF Strategies That Are Paying Off This Summer For the third quarter, the company expects monthly recurring revenue growth of 9% to 11%, total revenue growth of 10% to 12%, and an adjusted EBITDA margin of 51%. Leonetti said churn was 1.8% in the quarter, driven primarily by renewal-process execution and some delayed churn. Equinix expects churn to be near the lower end of its typical 2% to 2.5% range in the second half of the year. Equinix plans to double the number of cabinets it delivers in the second half of the year, including accelerating more than 7,000 cabinets originally planned for 2027 into the fourth quarter of 2026. Fox-Martin said the company has 52 major projects underway across 33 markets, with new projects announced in Chicago, Istanbul and Johor during the quarter. About 90% of the company’s $1.6 billion in quarterly capital expenditures was directed toward capacity expansion. Equinix opened new projects in Madrid, Milan and Silicon Valley since its prior earnings call. The company said it has 3 gigawatts of land under control and is currently building about 700 megawatts. Fox-Martin said Equinix either has contracted power or a high degree of confidence in power availability across that portfolio. She added that the company’s typical data center project is about 60 megawatts, distinguishing its development model from substantially larger single-site projects pursued elsewhere in the industry. Equinix expects to use about 0.3 gigawatts of power under its expanded capital plan and to retain about 2 gigawatts of available capacity by the end of its long-range planning period, according to Leonetti. Through 2029, Equinix expects annual revenue growth of 10% to 13% and annual AFFO-per-share growth of 9% to 12%. The company expects growth to begin at the lower end of the revenue range and accelerate as capacity expansion comes online. Equinix also forecast adjusted EBITDA margin of at least 53% by 2029 and annual capital expenditures of $5 billion to $7 billion from 2027 through 2029, excluding real estate acquisitions and xScale. More than 80% of expansion is expected to occur in the company’s top 25 global metros. Leonetti said the company expects stabilized assets to continue producing the “traditional” approximately 25% cash-on-cash returns around three to four years after being ready for service. Its 194 stabilized assets were 82% utilized and generated a 27% cash-on-cash yield on growth property, plant and equipment, he said. The company had about $7.7 billion of available liquidity, including an upsized revolving credit facility, and net leverage of 3.6 times annualized adjusted EBITDA. Leonetti said Equinix intends to maintain investment-grade credit ratings, funding expansion through retained cash flow and debt. He said leverage is expected to rise by about one turn through the planning period, while the blended cost of capital could increase by approximately 150 basis points. Management said much of the demand underpinning the outlook comes from large enterprises modernizing on-premise infrastructure, alongside new AI-native workloads and service providers. Fox-Martin said the majority of these customers are already Equinix clients. Eight of the top 10 model providers and eight of the top 10 neoclouds are running key networking workloads on Equinix, Fox-Martin said. The company also cited stronger demand for its Fabric offerings, including Fabric Geo Zones, which is in preview with approximately 80 enterprises. The product is designed to direct traffic over compliant paths or block it, addressing data-sovereignty requirements. Equinix said its Fabric Cloud Router bookings increased 170% year over year, including demand from non-colocation customers. Management said it continues to see firm pricing even as customer deployments become denser and larger. Fox-Martin identified four enterprise AI deployment patterns the company is observing: private AI infrastructure using open models; sovereign AI systems built for data residency and compliance; AI factories for model training and batch inference; and latency-sensitive inference deployments in specific metropolitan areas. The company also announced leadership additions, naming Chris Audie as chief product officer and Bruce Owen as executive vice president of global markets. Audie most recently served as HashiCorp’s chief product and technology officer, while Owen is a 16-year Equinix veteran who will oversee the company’s three regions. Equinix, Inc is a global provider of digital infrastructure and interconnection services, specializing in carrier-neutral data centers and colocation. The company operates a platform that enables enterprises, cloud and network service providers, and content companies to colocate IT infrastructure, interconnect directly with partners and providers, and access cloud on-ramps and network services in a secure, low-latency environment. Equinix's offerings include traditional colocation space and power, cross-connects and meet-me rooms, and a suite of connectivity and on-demand services designed for hybrid multicloud architectures. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Equinix Q2 Earnings Call Highlights" was originally published by MarketBeat. 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Equinix (EQIX) reported $2.63 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 16.4%. EPS of $11.78 for the same period compares to $3.75 a year ago. The reported revenue represents a surprise of +1.34% over the Zacks Consensus Estimate of $2.59 billion. With the consensus EPS estimate being $11.25, the EPS surprise was +4.71%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Equinix performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Quarter End Utilization - Worldwide: 78% versus the two-analyst average estimate of 77.7%. Cabinet Equivalent Capacity - EMEA: 141,000 versus the two-analyst average estimate of 142,763. Cabinet Equivalent Capacity - APAC: 96,400 versus 96,000 estimated by two analysts on average. Quarter End Utilization - EMEA: 78% versus the two-analyst average estimate of 77.2%. Geographic Revenues- Asia-Pacific: $529 million compared to the $552.39 million average estimate based on four analysts. The reported number represents a change of +9.1% year over year. Geographic Revenues- EMEA: $845 million versus the four-analyst average estimate of $860.34 million. The reported number represents a year-over-year change of +10.2%. Geographic Revenues- Americas: $1.25 billion versus $1.18 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +24.6% change. Geographic Revenues- EMEA- Recurring- Colocation: $633 million compared to the $628.15 million average estimate based on three analysts. The reported number represents a change of +10.7% year over year. Revenues- Non-recurring revenues: $248 million versus $180.54 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +119.5% change. Revenues- Recurring revenues: $2.38 billion compared to the $2.41 billion average estimate based on four analysts. The reported number represents a change of +10.9% year over year. Revenues- Recurring revenues- Managed infrastructure: $112 million compared to the $121.73 million average estimate based on three analysts. The reported number represents a change of -4.3% year over year. Revenues- Recurring revenues- Colocation: $1.77 billion versus the three-analyst average estimate of $1.78 billion. The reported number represents a year-over-year change of +11.8%. View all Key Company Metrics for Equinix here>>> Shares of Equinix have returned -0.7% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Equinix, Inc. (EQIX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street analysts expect Equinix (EQIX) to post quarterly earnings of $11.25 per share in its upcoming report, which indicates a year-over-year increase of 13.5%. Revenues are expected to be $2.59 billion, up 14.8% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe. Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock. While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights. Bearing this in mind, let's now explore the average estimates of specific Equinix metrics that are commonly monitored and projected by Wall Street analysts. The consensus estimate for 'Revenues- Non-recurring revenues' stands at $180.54 million. The estimate indicates a year-over-year change of +59.8%. The average prediction of analysts places 'Revenues- Recurring revenues' at $2.41 billion. The estimate indicates a year-over-year change of +12.4%. Analysts expect 'Revenues- Recurring revenues- Managed infrastructure' to come in at $121.73 million. The estimate indicates a change of +4% from the prior-year quarter. Analysts' assessment points toward 'Revenues- Recurring revenues- Colocation' reaching $1.78 billion. The estimate points to a change of +12.3% from the year-ago quarter. The combined assessment of analysts suggests that 'Geographic Revenues- Asia-Pacific' will likely reach $552.39 million. The estimate suggests a change of +13.9% year over year. Based on the collective assessment of analysts, 'Geographic Revenues- EMEA' should arrive at $860.34 million. The estimate suggests a change of +12.2% year over year. It is projected by analysts that the 'Geographic Revenues- Americas' will reach $1.18 billion. The estimate points to a change of +17.3% from the year-ago quarter. The collective assessment of analysts points to an estimated 'Geographic Revenues- EMEA- Non-recurring' of $39.42 million. The estimate indicates a change of +12.6% from the prior-year quarter. Analysts forecast 'Quarter End Utilization - Worldwide' to reach 77.7%. Compared to the current estimate, the company reported 78.0% in the same quarter of the previous year. Analysts predict that the 'Cabinet Equivalent Capacity - EMEA' will reach 142,763 . Compared to the present estimate, the company reported 137,800 in the same quarter last year. The consensus among analysts is that 'Cabinet Equivalent Capacity - APAC' will reach 96,000 . Compared to the present estimate, the company reported 89,900 in the same quarter last year. According to the collective judgment of analysts, 'Quarter End Utilization - EMEA' should come in at 77.2%. Compared to the current estimate, the company reported 77.0% in the same quarter of the previous year. View all Key Company Metrics for Equinix here>>> Over the past month, Equinix shares have recorded returns of -5% versus the Zacks S&P 500 composite's +0.6% change. Based on its Zacks Rank #3 (Hold), EQIX will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Equinix, Inc. (EQIX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Equinix, Inc. EQIX is scheduled to report second-quarter 2026 results on July 29, after market close. The company’s quarterly results are likely to display a year-over-year rise in revenues and adjusted funds from operations (AFFO) per share. In the previous quarter, this Redwood City, CA-based data center real estate investment trust (REIT) reported an AFFO of $10.79 per share, missing the Zacks Consensus Estimate of $10.89 per share. The results reflected higher recurring revenues, led by strong demand for digital infrastructure and services. Over the preceding four quarters, EQIX’s AFFO per share surpassed the consensus estimate on two occasions and missed in the remaining quarters, with the average beat being 2.83%. This is depicted in the graph below: Equinix, Inc. price-eps-surprise | Equinix, Inc. Quote In the second quarter of 2026, Equinix is likely to have benefited from the solid demand for interconnected data center infrastructure. Enterprises’ and service providers’ continued efforts to integrate artificial intelligence (AI) into their strategies and offerings and advance their digital transformation agendas are likely to keep demand up in the upcoming years. Moreover, the demand for Equinix’s interconnected ecosystem is likely to have remained strong, driven by accelerating enterprise cloud adoption and increasing demand from cloud and internet customers for highly interconnected data center space. The company’s recurring revenue model, which comprises colocation, related interconnection and managed infrastructure services, is expected to have supported stable cash flows in the to-be-reported quarter, boosting the data center REIT’s top line. The Zacks Consensus Estimate for colocation revenues is pegged at $1.78 billion, suggesting growth from $1.59 billion in the prior-year period. The consensus mark for interconnection revenues is pinned at $463.6 million, indicating growth from $407 million in the prior-year period. The consensus mark for managed infrastructure revenues is pegged at $121.7 million, implying an increase from $117 million reported in the prior-year period. The consensus mark for other revenues is pinned at $39.8 million, indicating a rise from $34 million in the prior-year quarter. For the second quarter of 2026, Equinix projected revenues between $2.571 billion and $2.611 billion, implying around a 9-10% increase over the prior quarter. The Zacks Consensus Estimate for the same is pegged at $2.59 billion, indicating an increase of 14.8% from the year-ago period’s reported figure. EQIX estimated adjusted EBITDA in the range of $1.349-$1.389 billion for the second quarter. EQIX’s activities during the to-be-reported period were adequate to garner analysts’ confidence. The Zacks Consensus Estimate for quarterly AFFO per share has been revised 57 cents upward to $11.25 over the past three months. It suggests a 13.5% increase from the prior-year quarter’s reported figure. However, high interest expenses might have partly impeded the company’s quarterly performance. Our proven model doesn’t conclusively predict a surprise in terms of AFFO per share for Equinix this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an AFFO beat, which is not the case here. Equinix currently has an Earnings ESP of 0.00% and a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Here are two stocks from the broader REIT industry — Extra Space Storage EXR and Cousins Properties CUZ — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter. EXR, which is scheduled to report quarterly results on July 28, 2026, has an Earnings ESP of +0.39% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here. Cousins Properties is slated to report quarterly numbers on July 30, 2026. CUZ has an Earnings ESP of +0.45% and carries a Zacks Rank of 3 at present. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Equinix, Inc. (EQIX) : Free Stock Analysis Report Cousins Properties Incorporated (CUZ) : Free Stock Analysis Report Extra Space Storage Inc (EXR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research