Second quarter 2026
Filed Jul 29, 2026Equinix Reports Second-Quarter Results, Raises 2026 Guidance and Long-Term Outlook
Revenue grew 16%, operating income rose 35%, net income attributable to common stockholders increased 30%, and the company raised full-year 2026 guidance and its 2027-2029 outlook amid stronger demand, bookings and presales activity.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenuesGAAP | $2.625 billion | – | 16% increase |
| Monthly recurring revenueother | 11% growth | – | 11% on both an as-reported basis and a normalized and constant currency basis |
| Operating IncomeGAAP | $665 million | – | 35% increase |
| Net Income Attributable to Common StockholdersGAAP | $479 million | – | 30% increase |
| Net Income per Share Attributable to Common StockholdersGAAP | $4.83 per share | – | 29% increase |
| Adjusted EBITDAnon-GAAP | $1.396 billion | – | 24% increase on an as-reported basis, or a 22% increase on a normalized and constant currency basis |
| Adjusted EBITDA marginnon-GAAP | 53% | – | – |
| AFFOnon-GAAP | $1.168 billion | – | 20% increase on an as-reported basis, or a 19% increase on a normalized and constant currency basis |
| AFFO per Sharenon-GAAP | $11.78 per share | – | 19% increase on an as-reported basis, or an 18% increase on a normalized and constant currency basis |
| Annualized gross bookingsother | $424 million | – | 23% year over year |
| Net interconnections addedother | 9,700 | – | – |
Q3 2026 and FY 2026 outlook
- RevenueQ3 2026: $2.525 - 2.575 billion; FY 2026: $10.205 - 10.285 billion
- NoteQ3 2026 revenue growth: 9 - 11% over the previous year on an as-reported basis, or 10 - 12% on a normalized and constant currency basis.
- NoteQ3 2026 Adjusted EBITDA: $1.275 - 1.315 billion.
- NoteQ3 2026 Adjusted EBITDA margin: ~51%.
- NoteQ3 2026 recurring capital expenditures: $70 - 90 million.
- NoteQ3 2026 recurring capital expenditures as a percentage of revenues: 3 - 4%.
- NoteFY 2026 revenue growth: approximately 11 - 12% over the previous year on both an as-reported and a normalized and constant currency basis.
- NoteFY 2026 Adjusted EBITDA: $5.210 - 5.270 billion.
- NoteFY 2026 Adjusted EBITDA margin: approximately 51%, an approximate +2% expansion over the previous year.
- NoteFY 2026 recurring capital expenditures: $290 - 310 million.
- NoteFY 2026 recurring capital expenditures as a percentage of revenues: ~3%.
- NoteFY 2026 non-recurring capital expenditures, excluding xScale and real estate acquisitions: $4.710 - 5.690 billion.
- NoteFY 2026 AFFO: $4.240 - 4.300 billion.
- NoteFY 2026 AFFO growth: 13 - 14% over the previous year on an as-reported basis, or 12 - 13% on a normalized and constant currency basis.
- NoteFY 2026 AFFO per Share (Diluted): $42.69 - 43.29.
- NoteFY 2026 AFFO per Share growth: 11 - 13% over the previous year on an as-reported basis, or 10 - 12% on a normalized and constant currency basis.
- NoteFY 2026 expected cash dividends: ~$2,039.
- NoteFY 2026 total capital expenditures: $5.000 - 6.000 billion.
- NoteUpdated outlook for 2027 - 2029 total revenue growth annual range: 10 - 13%.
- NoteUpdated outlook for 2027 - 2029 Adjusted EBITDA margin in 2029: 53%+.
- NoteUpdated outlook for 2027 - 2029 total capital expenditures annual range: $5,000 - 7,000 million.
- NoteUpdated outlook for 2027 - 2029 AFFO per Share growth annual range: 9 - 12%.
- NoteUpdated outlook for 2027 - 2029 dividend per Share growth annual range: Approximates AFFO per Share Growth.
Capital returns
- FY 2026 expected cash dividends: ~$2,039.
- Updated outlook for 2027 - 2029 dividend per Share growth annual range: Approximates AFFO per Share Growth.
What drove it
- Strong underlying performance and one-time xScale fees drove revenue growth.
- Strong underlying operating performance and the impact of one-time xScale fees supported operating-income growth.
- Higher operating income drove net income attributable to common stockholders growth.
- Strong operating performance and one-time xScale fees drove AFFO growth.
- Stronger-than-expected demand, accelerating bookings and presales activity, increased visibility from committed capacity and firm pricing supported the updated long-term outlook.
- The company added nine new projects since April and had 52 projects underway across 33 markets worldwide.
Concerns
- One-time xScale fees contributed to revenue, operating income and AFFO growth.
- FY 2026 total capital expenditures are expected to range between $5.000 and $6.000 billion.
- FY 2026 non-recurring capital expenditures, excluding xScale and real estate acquisitions, are expected to range between $4.710 and $5.690 billion.
What to watch
- Execution against Q3 2026 revenue guidance of $2.525 - 2.575 billion and Adjusted EBITDA guidance of $1.275 - 1.315 billion.
- Conversion of record backlog, stronger bookings and presales activity into revenue.
- Capacity expansion execution, including 52 projects underway across 33 markets worldwide.
- Progress toward the updated 2027 - 2029 annual total revenue growth outlook of 10 - 13% and 2029 Adjusted EBITDA margin outlook of 53%+.
- The scale and returns associated with FY 2026 total capital expenditures of $5.000 - 6.000 billion.
Analysis
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.
Management, verbatim
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.
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.
Adaire Fox-Martin, CEO and President, Equinix
Not in the filing
stated, not guessed- Segment revenue and segment growth were not provided in the supplied filing text.
- GAAP gross margin was not provided in the supplied filing text.
- GAAP operating expenses were not provided in the supplied filing text.
- Prior-year and prior-quarter absolute values for revenues, operating income, net income, EPS, Adjusted EBITDA, Adjusted EBITDA margin, AFFO and AFFO per Share were not provided on their respective reported metric lines.
- Quarter-over-quarter changes for reported metrics were not provided in the supplied filing text.
- Operating cash flow was not provided in the supplied filing text.
- Free cash flow was not provided in the supplied filing text.
- Cash and cash equivalents were not provided in the supplied filing text.
- Debt was not provided in the supplied filing text.
- Share repurchases were not provided in the supplied filing text.
- Gross-margin, operating-expense and tax-rate guidance were not provided in the supplied filing text.
- A previous release outlook was not provided for comparison against actual reported results. તેથી
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.