Equinix, Inc.
EQIX · Nasdaq
Dec 2026
Next quarter
Expected to report Feb 10, 2027 — estimated from last year’s reporting date.
Consensus is $8.85 EPS for Dec 2026 across 5 estimates, ranging $8.76 to $9.04.
EQIX Sep 2026
- 25.43%
- +2.88%
- $9.28
- $11.64
- —
- $2.57B
Reported results
- $2.57B
- 51.11%
- $600.00M
- 23.34%
- $489.00M
- $4.93
Highlights
- Reported per-share metric: The supplied results show $11.64 versus $9.28 consensus, a 25.4% beat; the release identifies $11.64 as diluted AFFO per share, while GAAP diluted EPS was $4.93, so the expectation metric is not directly comparable to GAAP EPS.
- Recurring demand: Monthly recurring revenue grew 11% year over year on a normalized, constant-currency basis for the fourth consecutive quarter; interconnection revenue rose 10% and Fabric revenue 24%.
- Bookings and pricing: Annualized gross bookings reached a record $533 million, up 35% year over year; new-deal pricing increased 12%, and MRR churn was 1.7%.
- Revenue and earnings: Revenue was $2.571 billion, up 11% reported and 12% normalized year over year, but down from $2.625 billion in Q2. Operating income rose 27% year over year to $600 million; net income was $489 million, up 31%.
- AFFO growth: AFFO was $1.156 billion, up 20% reported year over year; diluted AFFO per share was $11.64, up 18%. Excluding the atNorth joint-venture fee, normalized growth was 14% for AFFO and 12% per share.
- Capacity acceleration: Equinix expects to deliver nearly 40% more cabinets in 2026 than initially planned, including more than 13,000 in Q4; over 20% of Q4 capacity and 15% of 2027 retail capacity are already presold.
- Raised outlook: For the third consecutive quarter, Equinix lifted 2026 guidance: revenue to $10.325–$10.365 billion, adjusted EBITDA to $5.290–$5.330 billion, and diluted AFFO per share to $43.71–$44.11.
- Investment and funding: Q3 capital expenditures were about $1.6 billion, roughly 90% for capacity expansion. Management cited 4.1x net leverage and $9.1 billion of available liquidity; total debt principal was $25.2 billion at quarter-end.
Analysis
Equinix’s Q3 was a demand-and-capacity quarter: bookings, pricing and recurring revenue all strengthened, and management raised full-year guidance again. Revenue of $2.571 billion was up 11% year over year as reported (12% normalized and constant currency), but eased from $2.625 billion in Q2 as non-recurring revenue fell to $129 million from $248 million. Operating income of $600 million was 27% above a year ago but below Q2’s $665 million. Net income rose 31% year over year to $489 million, including a non-recurring fee associated with the atNorth investment. GAAP diluted EPS was $4.93, versus $4.83 in Q2 and $3.81 a year earlier.
The supplied expectation comparison lists $11.64 against $9.28, a 25.4% beat, but the release classifies $11.64 as diluted AFFO per share, not GAAP EPS; the consensus measure is therefore not clearly comparable. AFFO per share grew 18% reported, or 12% normalized excluding the atNorth fee. The operating backdrop was strong: record annualized gross bookings of $533 million, new-deal pricing up 12% and churn at 1.7%. Equinix is accelerating delivery to convert that demand, while investing heavily: Q3 capex was about $1.6 billion and the 2026 total outlook remains $5–$6 billion. Guidance increases reflect the strong execution, though Q4 EBITDA margin is expected to seasonally decline to 49–50% from 51.4% in Q3.
Demand and pricing
- Recurring revenue: Monthly recurring revenue grew 11% year over year on a normalized, constant-currency basis for the fourth straight quarter. Total revenue growth on that basis was 12%.
- Interconnection: Revenue grew 10% year over year, while Fabric revenue increased 24%. The company added 6,900 net interconnections; interconnection revenue represents 19% of total revenue.
- Sales momentum: Annualized gross bookings were a record $533 million, up 35% year over year. Broader sales activity, including presales, grew 38%, and Equinix had secured 60% of its Q4 bookings target at the time of the call.
- Pricing and retention: Pricing on new deals was up 12% year over year. Churn was 1.7%; management attributed the low rate to renewal execution and constrained market capacity, while retaining a 2–2.5% churn assumption for the rest of 2026.
Quarterly financials
- Revenue mix: Revenue of $2.571 billion rose 11% reported year over year but declined about 2% sequentially from $2.625 billion. Recurring revenue increased to $2.442 billion from $2.377 billion in Q2, while non-recurring revenue dropped to $129 million from $248 million.
- Operating results: Operating income was $600 million, up 27% from $474 million a year earlier but down from $665 million in Q2. Adjusted EBITDA was $1.321 billion, up 15% reported year over year (14% normalized and constant currency) and down from $1.396 billion sequentially.
- Margins: Adjusted EBITDA margin was 51.4%, up 180 basis points year over year. Management expects the typical seasonal decline in Q4, guiding to a 49–50% margin while still expecting year-over-year margin improvement.
- Per-share measures: Net income was $489 million versus $374 million a year ago and $479 million in Q2; GAAP diluted EPS was $4.93 versus $3.81 and $4.83, respectively. AFFO was $1.156 billion and diluted AFFO per share $11.64; reported growth was 20% and 18%, respectively, with normalized growth excluding the atNorth fee of 14% and 12%.
Capacity delivery
- Cabinet deliveries: Equinix expects nearly 40% more cabinets to be delivered in 2026 than it initially planned. More than 13,000 cabinets are expected in Q4, a company record; over 20% of that quarter’s capacity is presold.
- Forward commitments: 15% of planned 2027 retail capacity was already presold. The company reported 3 gigawatts of developable capacity, including projects in progress, about 80% of it in its top 25 metros with land, power and permitting largely secured.
- Project portfolio: 48 projects across 32 markets were underway, and management said components and construction resources were being secured in advance to shift capacity among projects as schedules change. Q3 capex was about $1.6 billion, roughly 90% directed to expansion.
- Returns and constraints: The 193 stabilized assets were 83% utilized and generated a 27% cash-on-cash return. Management acknowledged power, permitting and community constraints, citing a 20-year Georgia utility agreement under which Equinix funds the grid infrastructure needed for its Hampton campus.
Raised 2026 guidance
- Full-year revenue: The new range is $10.325–$10.365 billion, about 12% growth year over year. Q4 revenue guidance is $2.684–$2.724 billion, or 12–13% normalized and constant-currency growth.
- Profitability: Full-year adjusted EBITDA guidance increased to $5.290–$5.330 billion, at about a 51% margin and roughly 200 basis points of year-over-year expansion. Q4 adjusted EBITDA is expected at $1.328–$1.368 billion.
- AFFO and investment: Full-year AFFO guidance is $4.340–$4.380 billion and diluted AFFO per share is $43.71–$44.11, representing 11–12% normalized growth per share. Capital expenditure guidance remains $5–$6 billion, including real estate acquisitions and xScale.
atNorth and funding
- Joint-venture investment: Equinix completed its atNorth investment with CPP Investments in September, contributing $869 million for an approximately 34% interest. atNorth is accounted for under the equity method, so its revenue is not consolidated; the company reported a non-recurring fee related to the investment that boosted Q3 net income and AFFO.
- Growth pipeline: Management said atNorth adds an active 800-megawatt development pipeline expected to come online over five years, plus a further 1 gigawatt of potential expansion. Equinix raised full-year AFFO guidance by $90 million, including a $31 million atNorth contribution.
- Balance sheet: Management cited 4.1x net leverage, $9.1 billion in available liquidity, a 3.2% blended in-place borrowing rate and average debt maturity exceeding six years. Total debt principal outstanding was $25.2 billion at September 30, up from $21.4 billion at year-end; the company expects to double its portfolio with only a modest increase in leverage.
