$EQIX earnings report

Equinix reported third-quarter revenue of $2.571 billion, up 11% year over year on an as-reported basis and 12% on a normalized and constant currency basis. Recurring revenue was $2,442 million, while non-recurring revenue was $129 million. The company described robust demand and strengthening pricing, reported record annualized gross bookings of $533 million, and added 6,900 net interconnections. Interconnection revenue grew 10% year over year and Fabric revenue grew 24% year over year, both on as-reported and normalized and constant currency bases.

Profitability improved materially from the prior-year period. Operating income rose 27% to $600 million, net income attributable to common stockholders rose 31% to $489 million, and diluted EPS rose 29% to $4.93 per share. Adjusted EBITDA increased 15% to $1.321 billion and AFFO increased 20% to $1.156 billion. The release attributes net-income growth to higher operating income and a non-recurring fee earned in connection with the atNorth joint venture. Q3 adjusted EBITDA margin was 51%, versus 50% in the prior-year quarter, though it was 53% in the prior quarter.

The regional revenue mix was led by the Americas at $1,148 million, followed by EMEA at $878 million and Asia-Pacific at $545 million. Worldwide colocation revenue was $1,826 million and worldwide interconnection revenue was $465 million. Revenue was lower sequentially than $2.625 billion in the second quarter, alongside non-recurring revenue of $129 million compared with $248 million in the prior quarter. The company is accelerating capacity delivery, with nearly 40% more cabinets planned for 2026 than initially anticipated, and completed its investment in atNorth alongside CPP Investments.

Capital requirements remain substantial. During the first nine months, net cash provided by operating activities was $3,027 million, purchases of other property, plant and equipment were $(4,392) million, and free cash flow was $(801) million. Total debt principal outstanding was $25,217 million as of September 30, 2026. Equinix raised its full-year outlook for the third consecutive quarter: FY 2026 revenue is expected at $10.325 - $10.365 billion, adjusted EBITDA at $5.290 - $5.330 billion, and AFFO at $4.340 - $4.380 billion. Total capital expenditures are expected to range between $5 and $6 billion.

Equinix reported a strong second quarter ended June 30, 2026. Revenues were $2.625 billion, up 16% year over year on both an as-reported and normalized and constant currency basis. Monthly recurring revenue grew 11% on both bases. The company delivered $424 million of annualized gross bookings, up 23% year over year, and said this represented the second-highest volume on record and contributed to a record backlog. It also added a record 9,700 net interconnections.

Profit growth exceeded reported revenue growth. Operating income was $665 million, up 35%, while net income attributable to common stockholders was $479 million, up 30%, and net income per share attributable to common stockholders was $4.83 per share, up 29%. Adjusted EBITDA reached $1.396 billion with a record adjusted EBITDA margin of 53%, and rose 24% on an as-reported basis. The release attributed operating-income growth to strong underlying operating performance and one-time xScale fees, while higher operating income supported net income growth.

AFFO was $1.168 billion, up 20% on an as-reported basis, and AFFO per Share was $11.78 per share, up 19% on an as-reported basis. The release cited strong operating performance and one-time xScale fees as AFFO drivers. The business also accelerated capacity expansion, adding nine new projects since April and reporting 52 projects underway across 33 markets worldwide. Collaboration expansions with Cisco and NVIDIA were positioned around enterprise AI deployment.

Management raised full-year 2026 revenue guidance to $10.205 - 10.285 billion and Adjusted EBITDA guidance to $5.210 - 5.270 billion, with an approximately 51% Adjusted EBITDA margin. AFFO guidance increased to $4.240 - 4.300 billion and diluted AFFO per Share guidance to $42.69 - 43.29. The company expects FY 2026 total capital expenditures of $5.000 - 6.000 billion, reflecting the investment required to support demand and capacity expansion.

The updated 2027 - 2029 outlook lifts the annual total revenue growth range to 10 - 13%, targets an Adjusted EBITDA margin in 2029 of 53%+, and sets annual total capital expenditures at $5,000 - 7,000 million. The company attributed the revision to stronger-than-expected demand, accelerating bookings and presales activity, increased visibility from committed capacity, firm pricing and confidence in returns on invested capital. The central execution items are backlog conversion, expansion delivery and maintaining margin performance while capital expenditures increase.