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Hyperscalers are signing multi-year leases at a pace that is rewriting the income playbook, and three REITs are quietly collecting the rent on every server warehouse in the deal. The question is which one fits a portfolio built for the…

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Data centers are the physical layer under the AI buildout: leased, powered warehouses that house the servers running training and inference. Landlords sign multi-year rent contracts, often with hyperscalers (the largest cloud and AI operators such as Amazon, Microsoft, Google, Meta, and Oracle), which makes the cash flows look like industrial real estate with a technology tailwind. Iron Mountain management has cited an industry expectation that data center capacity grows at a 15% to 25% CAGR, and leasing activity across the three names below supports that framing. All three are US-listed equity REITs that own the properties and collect the rent, not mortgage REITs. (we profiled seven suppliers powering this same buildout, from power to cooling, in a free report you can grab here: 7 Stocks Powering the AI Boom.)

Digital Realty Trust: Global Landlord to the Hyperscalers Digital Realty Trust (NYSE:DLR | DLR Price Prediction) operates PlatformDIGITAL, Interxion, and ServiceFabric across 733 data centers in 39 metros, with major development markets in Northern Virginia, Charlotte, Atlanta, São Paulo, and Marseille. The customer base spans traditional hyperscalers, network carriers, and enterprise AI adopters.

Q1 2026 delivered $707 million in annualized GAAP base rent bookings at 100% share, anchored by a 200 megawatt AI inference lease, the largest hyperscale deal in company history. In Q2, backlog reached a record $1.9 billion at 100% share and $1.4 billion at Digital Realty share, which management called roughly 30% of in-place data center revenue. Cash releasing spreads on renewals exceeded 25% in the quarter.

The quarterly dividend of $1.22 per share, implies an annual $4.88, compared with a share price of $187.79. That payout has been held at $1.22 quarterly since the March 2022 ex-date, so this is a dividend that has been maintained rather than raised through the AI cycle. Coverage on Core FFO is comfortable: 2026 guidance was raised to $8.15 to $8.20 per share of Core FFO excluding net promote income, well ahead of the $4.88 annual dividend.

Bull case: a 1.4 gigawatt development pipeline that is 63% pre-leased pro forma for July signings, with an average expected stabilized yield of 11.5%, plus 600 megawatts of secured Kansas City utility power ramping in 2028, points to multi-year rent growth without heroic assumptions.

Bear case: development capital intensity. Digital Realty already sold 7.3 million shares under its ATM for about $1.3 billion of net proceeds and raised 2026 net capex guidance to $4.25 billion to $4.75 billion. A flat dividend during a heavy equity-issuance phase is the cost of growth, and an AI capex slowdown would leave that unfunded pipeline exposed.

Equinix: Interconnection Moat Meets AI Inference Equinix (NASDAQ:EQIX) runs a global colocation and interconnection platform, with 52 expansion projects underway across 33 markets. The differentiator is density of network connections. Interconnection is the paid cross-connect that lets a tenant plug directly into another tenant, a cloud, or a carrier inside the same building, which cuts latency and backhaul cost. Equinix says its ecosystem is approximately twice the size of the next largest provider, and that eight of the top 10 model providers and eight of the top 10 neoclouds are already running key networking workloads on Equinix.

Revenue reached $2.625 billion, up 16.4% year over year, with annualized gross bookings of $424 million, up 23%, and a record 9,700 net interconnections added. Adjusted EBITDA margin was 53%, up 300 basis points year over year. Management raised full-year AFFO per share growth expectations to 10% to 12% and called it “the largest single guidance raise in the history of our company”.

Currently the quarterly dividend pays out $5.16 per share, annualized for $20.64, against a share price of $1,040.83. The dividend has moved from $4.26 in 2024 to $4.69 in 2025 to $5.16 in 2026. AFFO coverage is conservative: full-year 2026 AFFO per share is guided to $42.69 to $43.29 against expected cash dividends of roughly $2.039 billion for the full year. Long term, management expects dividend per share growth to approximate AFFO per share growth, which is guided at 9% to 12% annually through 2029.

Bull case: CEO Adaire Fox-Martin said “the AI-driven infrastructure cycle continues to accelerate and it’s playing directly to our strengths”, and the stabilized portfolio is already generating a 27% cash-on-cash yield on gross property and equipment. That is the kind of unit economics that funds continued dividend growth.

Bear case: power, land, and cost of capital. Equinix is committing to $5 billion to $7 billion of annual capex through 2029, and management expects the blended cost of capital to rise by approximately 150 basis points and leverage to increase by about a turn across the plan.

Iron Mountain: Records Storage Cash Cow Bankrolling a Data Center Ramp Iron Mountain (NYSE:IRM) is a hybrid equity REIT: a legacy physical records storage business with record storage volume of 735 million cubic feet and a 93.4% retention rate, layered with fast-growing data center, digital, and asset lifecycle management segments. Those three growth segments grew more than 50% year over year and now account for 35% of second-quarter revenue.

Revenue was $263 million in Q2, up 39% year over year, with renewal pricing spreads of 12% cash and 14% GAAP. Year-to-date leasing reached 110 megawatts through July, including 75 megawatts in July alone, capped by a 51 megawatt Mumbai lease with a major global hyperscaler on a 10-year contract and a 25 megawatt lease that fully leased London 3. Approximately 325 megawatts of leasable capacity is expected to energize over the next 24 months.

T quarterly dividend comes in at $0.864 per share, for an annualized $3.456, compared with a share price of $114.98. The dividend has stepped up in four consecutive years, from $0.65 through mid-2024, to $0.715, to $0.785, and now $0.864 quarterly. AFFO coverage: full-year AFFO per share guidance of $5.87 to $5.93 against the $3.456 annualized dividend, consistent with management’s stated low-60s% AFFO payout ratio target.

Bull case: the records business funds a data center build with signed, hyperscaler-anchored backlog that supports additional revenue growth of $370 million beyond 2026, and the ALM segment now runs at $288 million of quarterly revenue, up 88% year over year, giving Iron Mountain a second growth lever tied to the same hyperscaler refresh cycle.

Bear case: the balance sheet. Iron Mountain carries $17.3 billion of net debt, negative shareholders’ equity of $955 million, and net lease-adjusted leverage of 4.8 times. It recently issued a $1.5 billion bond with a 6.25% fixed coupon maturing in 2035. Higher rates and continued data center capex needs mean interest expense is a real headwind if hyperscale leasing lumpiness slows the AFFO ramp.

Bottom Line for Income Portfolios Current yields here are moderate by design: dividends are covered by AFFO or Core FFO, and the growth is coming from real, signed hyperscale leases against gigawatt-scale pipelines. Equinix is the compounder with the interconnection moat and a rising dividend. Iron Mountain is the highest-growth data center story on the roster, funded by a records business that keeps paying the bills. Digital Realty is the pure-play landlord with the largest hyperscale lease in its history in the bag, though income buyers should recognize the dividend has been flat while the company issues equity to fund the build. For a retirement income sleeve tied to the AI buildout, owning the physical rent stream beats owning the chip cycle.

Contact [email protected] for any questions or corrections.

Key Takeaways Equinix, NVIDIA and Together AI are launching a distributed AI inference program for enterprises.Equinix Inference Exchange targets faster deployment, flexibility and cost efficiency as AI scales.The platform will support metro-edge inference, open models and sovereign AI, with a 2027 launch planned. Equinix, Inc. (EQIX - Free Report) has expanded its longtime collaboration with NVIDIA and announced a new collaboration with Together AI to deliver Equinix Inference Exchange, a distributed AI inference program for global enterprises. The offering combines NVIDIA Enterprise Reference Architectures, Together AI’s inference platform and Equinix’s global infrastructure to improve deployment speed, flexibility and cost efficiency as enterprises move AI workloads from experimentation to production.

The initiative addresses a growing challenge for enterprises as AI scales across models, cloud providers and geographies, determining where inference should run. As enterprise AI moves into production, inference increasingly needs to run closer to users, data and applications it serves. This requires enterprises to balance performance, cost and governance while deciding where AI infrastructure runs and how it connects to dependent workloads. Equinix Inference Exchange will provide secure, low-latency connectivity to clouds, networks and AI providers through Equinix Fabric.

Equinix’s global footprint provides the infrastructure foundation for the solution. The company has more than 280 data centers across 77 metros, 230 cloud on-ramps and more than 10,500 businesses interconnected on its neutral exchange. Eight of the top 10 AI model providers and nine of the top 10 AI cloud providers have deployed with Equinix, reinforcing its position within the AI ecosystem.

Under the three-layer model, Equinix will provide power, advanced cooling, operational support and connectivity. NVIDIA will provide its Enterprise Reference Architectures and AI infrastructure designed to maximize AI factory throughput and minimize token cost. Together AI will operate the platform, which supports more than 200 open-source models, with multitenant deployments for shared efficiency and dedicated single-tenant environments requiring dedicated capacity.

Equinix Inference Exchange is designed to support metro-edge inference, open-model migration and sovereign AI. For regulated industries or specific geographies, it will enable AI workloads to run in locations that support data residency and sovereignty requirements while maintaining control over where data and inference are processed. Equinix expects Inference Exchange to become available in the first quarter of 2027.

ConclusionEquinix Inference Exchange strengthens EQIX’s positioning in enterprise AI by extending its global interconnection ecosystem into distributed inference. The initiative aligns with rising AI-related demand, record interconnection additions and broad-based bookings momentum, reinforcing Equinix’s role as critical infrastructure for increasingly distributed workloads.

Although the service is not expected to become available until the first quarter of 2027 and Equinix has not disclosed financial targets for the offering, Inference Exchange could provide an additional growth opportunity as enterprises increasingly move AI workloads from experimentation into production.

In the past six months, shares of this Zacks Rank #3 (Hold) company have gained 4.8% against the industry’s 1.8% decline.

Image Source: Zacks Investment Research

Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are Digital Realty Trust (DLR - Free Report) and Welltower (WELL - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for DLR’s 2026 FFO per share is pinned at $8.40. This indicates year-over-year growth of 13.67%.

The Zacks Consensus Estimate for WELL’s 2026 FFO per share is pegged at $6.40. This calls for a year-over-year increase of 20.98%.

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.

When Nvidia Corp (NASDAQ:NVDA) CEO Jensen Huang took the stage at the G20, he wasn’t unveiling a new chip or discussing quarterly demand. Instead, he reframed artificial intelligence as something far more fundamental: infrastructure.

By comparing AI to “water, roads and electricity,” Huang made a case that countries risk falling behind economically if they fail to build their own AI capabilities—a message that could reshape who buys Nvidia’s technology in the years ahead.

“Every single country needs to build infrastructure so that you could support your own local economy,” Huang said at the G20, adding that AI infrastructure is “the great equalizer” and that “the single worst outcome” for any country would be to be left behind.

Huang’s remarks reflect Nvidia’s increasingly public push for what the industry calls sovereign AI—the idea that countries harness their own AI, computing infrastructure, and data centers rather than relying entirely on foreign platforms.

The Winners Extend Beyond NvidiaIf governments increasingly treat AI infrastructure as a strategic investment, Nvidia stands to benefit as the leading supplier of AI accelerators. But the spending would not stop with GPUs.

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Large AI data centers require high-speed networking, advanced cooling systems, reliable power equipment and physical facilities. That creates potential opportunities for companies such as:

Arista Networks, Inc (NYSE:ANET) and Broadcom Inc. (NASDAQ:AVGO) in networking Vertiv Holdings, LLC (NYSE:VRT) and Eaton Corporation, PLC (NYSE:ETN) in power and cooling infrastructure, and Digital Realty Trust, Inc (NYSE:DLR) and Equinix, Inc. (NASDAQ:EQIX) in data center operations. Huang’s comments broaden the investment conversation. If sovereign AI becomes a recurring theme in government budgets, demand could shift from a handful of U.S. hyperscalers to a more diversified mix of public-sector and regional infrastructure projects.

The Investment TakeawayHuang’s G20 remarks are best understood not as a policy speech but as a roadmap for Nvidia’s next addressable market. The key question for investors is no longer whether hyperscalers will keep spending on AI—it is whether governments begin treating AI infrastructure as essential national infrastructure.

The evidence to watch will be concrete commitments rather than rhetoric: national AI budgets, sovereign cloud initiatives, public-private partnerships and large-scale AI data center announcements. If those projects accelerate, the beneficiaries may extend well beyond Nvidia to the broader ecosystem that powers AI infrastructure.

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Long before the era of the hyperscalers and neoclouds, and decades ahead of the AI data center boom, there was Equinix.

Described as a colocation facility, Equinix provides data center space for over 10,500 customers, offering space, power, cooling and security for companies that need a place to house their servers, routers and storage systems.

That experience, dating back to the 1998 dot-com bonanza, has given Equinix an important and expanding role in the artificial intelligence data center market, where hyperscalers are expected to spend over $5 trillion by 2030, according to Goldman Sachs Research. On Wednesday, Equinix inked a deal with Nvidia that gives customers a flexible way to run their AI models on open-source cloud platform Together AI.

Equinix's stock price is up 33% this year, beating all of megacap tech and lifting the company's market cap to $100 billion. It's by far the most valuable data center real estate investment trust (REIT), ahead of Digital Realty, which has a market cap of $68 billion.

Equinix vs. S&P 500 this year

Hyperscalers like Amazon and Google, and neoclouds like CoreWeave are collectively spending hundreds of billions of dollars a year on infrastructure, with an outsized amount of that going to serve major AI labs like OpenAI and Anthropic. Equinix, by contrast, rents out space in its facilities to customers of all shapes and sizes that can run servers on a variety of compute platforms, from Nvidia to AMD.

At an event in San Francisco, California, on Wednesday tied to the Nvidia deal, the chipmaker's CEO, Jensen Huang, spoke by video with Equinix CEO Adaire Fox-Martin. Huang said that the location of Equinix's facilities allow you to be "close to where the action is, where all the sensors are." And because the architecture is distributed, "you could both simultaneously be close and be far away," he said.

Equinix is one of the oldest names in the data center business. Its 281 legacy colocation facilities span 77 metropolitan areas across six continents, according to Maryam Zand, a vice president at the company who runs its AI ecosystem strategy.

"The companies you already use are all running on us," she says.

Financing details for Wednesday's deal weren't disclosed. Zand said Together AI, which offers access to 200 open-source models, will be the seller of record, billing its end customers who use the new program. Called Equinix Inference Exchange, it will be available in the first quarter of 2027.

Focus on inferenceWhile AI training teaches the model to learn from patterns in large amounts of data, inference refers to the decisions that are made based on new information. As AI evolves from simple call-and-answer chatbots to more complex agentic apps, inference has become more critical than training. That means workloads need to run on a wider variety of chips such as central processing units (CPUs), instead of relying solely on general-purpose workhorse graphics processing units (GPUs).

Equinix has mainly stuck to its old playbook of building smaller data centers in locations close to city centers, positioning them as network interconnection hubs. Digital Realty, by contrast, began to place greater emphasis on large-scale facilities for hyperscale customers.

For xScale, the side of Equinix's business that serves hyperscalers, most facilities are on the smaller side. They're under 100 megawatts, while some AI data centers are being measured in the gigawatts.

Vlad Galabov, a longtime data center analyst, said Equinix was "too slow" to react to the gigawatt-scale demand.

"There was new, hungrier guys who came in to start to build data centers for some of these burst projects that just quickly spun up," said Galabov, host of the AIDC Debate podcast. "Equinix, Digital Realty, all of the colocation companies are now seeing the need to plan more strategically."

Equinix's announcements Wednesday also included  Equinix Fabric One, a new connectivity service meant to simplify networks that operate using multiple clouds and AI models. 

Zand described the announced program with Nvidia and Together AI as  an "inference platform as a service," that enables customers to connect to a variety of different clouds and providers, run inference on open source models, and "optimize their tokenomics" — or reduce costs. 

She told CNBC that Equinix data centers are optimized for Nvidia's B300 Blackwell Ultra GPUs, but it also has some liquid-cooled facilities where customers can use the newer Vera Rubin chips.

Where Equinix has a particular advantage is its urban locations, which are important for inference and the high-speed communication required between servers and end users. By 2030, inference will make up half of all AI compute and 30% to 40% of total data center demand, according to McKinsey.

"The changes are very rapid in today's environment, in the whole AI ecosystem," Zand said. "Customers need to be able to move as the market moves."

Not all investors are excited about the story.

Short seller Jim Chanos told CNBC's "Closing Bell" in May that he was betting against the stock, as well as Digital Realty, saying "they're not great businesses" and are "not very profitable."

"They're very low return on capital businesses, very capital-intensive businesses, and they don't grow that fast," he said.

He added that, "the legacy data center companies are a distinct difference from the data centers that are being built for AI."

In the latest quarter, Equinix reported a 16% increase in revenue from a year earlier to $2.63 billion. CoreWeave, one of the leading neoclouds, saw revenue more than double to $2.58 billion. However, Equinix reported net income of $477 million in the period, while CoreWeave lost $626 million.

Galabov said Equinix is "super diversified" with a huge amount of general purpose compute and services across a very wide client base.

"They are not exposed to an AI bubble risk," Galabov said. "That means you're missing out on some of the boom. It's just inevitable. High risk, high return."

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Equinix Inference Exchange combines NVIDIA Enterprise Reference Architectures, Together AI's inference platform and Equinix's global infrastructure to optimize deployment speed, flexibility and cost efficiency

, /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company®, today announced a significant expansion of its longtime collaboration with NVIDIA to deliver Equinix® Inference Exchange, a distributed AI inference program for global enterprises, alongside a new collaboration with Together AI.

Equinix® Inference Exchange - Bringing inference closer to where data, users and applications live As AI scales across models, providers and geographies, where inference runs is a strategic imperative that determines performance, cost and governance. Equinix Inference Exchange will give enterprises a faster path from AI experimentation to production, with secure, low-latency connectivity to the data, users and ecosystem they depend on.

This collaboration brings together NVIDIA's validated Enterprise Reference Architectures with Together AI's inference platform, supporting more than 200 open-source models. Delivered through Equinix's global data centers, it will provide connectivity to clouds, networks and AI providers through Equinix Fabric®.

The solution will be announced today at Equinix Horizon, the company's inaugural customer and partner event, alongside Equinix® Fabric One™, which will make it easier for enterprises to connect across globally distributed AI environments.

"AI is transforming enterprise technology at extraordinary speed, and the infrastructure decisions enterprises make today will define their competitive position for years to come. Equinix is uniquely positioned to deliver what this moment demands based on our nearly three decades building the trusted exchange where the world's enterprises run, connect and orchestrate their most critical workloads," said Adaire Fox-Martin, Chief Executive Officer and President, Equinix. "Our longtime relationship with NVIDIA delivers the accelerated computing foundation at the heart of modern AI, while Together AI's commitment to open ecosystems gives enterprises the flexibility to scale on their terms. Equinix Inference Exchange will enable architectures that are neutral by design, open by default and engineered for exceptional performance."

"Equinix Inference Exchange turns the world's leading digital interconnection platform into a global fabric for AI inference," said Raj Mirpuri, vice president of global AI clouds and infrastructure ecosystem at NVIDIA. "As accelerated compute becomes a strategic asset class, combining NVIDIA's infrastructure & technology with Together AI's open-model inference platform and Equinix's global reach gives enterprises a powerful, distributed foundation to bring intelligence closer to their data, applications and customers—accelerating the next generation of intelligent services."

"Together AI was built on the conviction that open, accessible AI is what will define the industry moving forward, because enterprises shouldn't have to choose between model performance and operational flexibility," said Vipul Ved Prakash, co-founder and CEO, Together AI. "What we are building with Equinix and NVIDIA proves that model choice and performance are not trade-offs. They are the foundation of enterprise AI done right."

Where Inference Runs Matters

The pace of enterprise AI adoption is outrunning the infrastructure needed to support it. As enterprise AI moves from experimentation to production, inference increasingly needs to run closer to the users, data and applications it serves across clouds, models, providers and geographies. This shift requires enterprises to determine not only how to deploy AI infrastructure, but where it should run and how it connects to the data, applications and workloads it depends on.

Managing these distributed inference deployments introduces significant operational complexity at precisely the moment enterprises need greater control and visibility.

"Performance, cost and governance have become strategic considerations as AI workloads grow more distributed across providers, data sources and environments," said Nick Patience, Vice President & Practice Lead, AI Platforms, The Futurum Group. "Organizations are increasingly focused on where inference runs and how quickly it can be deployed into production. Solutions that simplify inference deployment while preserving flexibility will become increasingly important to achieve business outcomes."

Equinix brings unmatched scale and ecosystem density to this challenge, with more than 280 data centers across 77 metros, 230 cloud on-ramps and over 10,500 businesses interconnected on its neutral exchange. Eight of the top 10 AI model providers and nine of the top 10 AI clouds are deployed with Equinix, underscoring the company's position at the center of the AI ecosystem.

Built for Choice and Flexibility

Together AI is the latest addition to Equinix's expansive AI ecosystem, bringing open-model flexibility and choice to enterprises deploying AI at scale. The solution combines three complementary layers designed to simplify distributed AI inference:

Equinix provides the infrastructure foundation, including power, advanced cooling and day-two operations, connected through Equinix Fabric to the clouds, networks and AI providers that inference depends on. NVIDIA anchors the build with its Enterprise Reference Architectures and AI infrastructure purpose-built to maximize AI factory throughput and minimize token cost.   Together AI runs the platform on top, supporting both multitenant deployments for shared efficiency and dedicated single-tenant environments for workloads that require dedicated capacity. Built on Equinix Fabric, the solution will connect to inference providers across major metros worldwide, cutting time-to-first-token. It also will connect to an expansive ecosystem of clouds, networks and AI providers, reducing deployment complexity.

Designed for Modern Enterprise Inference

The solution aims to support a broad range of enterprise inference scenarios, including:

Metro edge inference: For organizations that need inference running closer to users and data, enabling lower-latency AI experiences while leveraging the security, operational scale and global reach of Equinix. Open model migration: For enterprises moving workloads from closed, proprietary models to open-source alternatives to control cost and avoid lock-in, the solution will provide a direct, low-friction path to run that migration in production, with Together AI's open-model platform reachable over the same interconnected fabric enterprises already use to reach their other providers. Sovereign AI: For enterprises operating in regulated industries or specific geographies, the solution will enable AI workloads to run in locations that support data residency and sovereignty requirements, providing a simpler path to deploying AI at scale while maintaining control over where data and inference are processed. Equinix Inference Exchange will be available starting in Q1 2027.

Additional Resources

Token Optimization Begins with Choice [Analyst Report] The Coordination Economy: How Enterprises Really Build AI Value [Blog] Equinix Inference Exchange [Product Page] Equinix Inference Exchange Product Release Note [Product Release Note] Equinix Horizon Event Page [Event Page] 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.

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.

SOURCE Equinix, Inc.

Key Takeaways EQIX will test quantum integration with cloud, AI and high-performance computing infrastructure.Diraq's eight-qubit system will operate alongside servers using self-contained cooling and under 20 kW.Project will assess connectivity, security and quantum interaction with CPUs and GPUs in a commercial setting. Equinix Inc. (EQIX - Free Report) is strengthening its position in next-generation digital infrastructure through a collaboration with Australian quantum-computing company Diraq. The companies plan to install Diraq's quantum computer at an Equinix data center in Sydney, marking what Diraq describes as the world’s first silicon spin quantum computer deployed inside a shared commercial data-center environment. The installation is expected to be completed in October 2026.

The quantum system will use an eight-qubit silicon chip and operate alongside conventional data-center servers. Its cooling and control electronics are designed to be self-contained, while the system requires less than 20 kilowatts of power. Importantly, Diraq expects future increases in qubit capacity to be achieved primarily through chip replacements, potentially limiting the need for extensive infrastructure modifications.

For Equinix, the deployment provides an opportunity to demonstrate how quantum systems can be integrated with existing cloud, artificial intelligence and high-performance computing infrastructure. The project will test network connectivity, remote monitoring, security and interaction between quantum processors, CPUs and GPUs under commercial data-center conditions. This could become increasingly relevant as enterprises explore hybrid computing architectures that combine classical and quantum technologies.

The collaboration also highlights Equinix’s capabilities in data sovereignty, security and compliance, which are important considerations for enterprise adoption emerging computing technologies. Once testing is completed, Diraq plans to give industry partners and customers an opportunity to see quantum computing in operation and explore potential applications within the Equinix facility.

ConclusionWhile the initiative is unlikely to materially affect Equinix’s near-term financial performance, it strengthens the company’s strategic positioning in advanced computing infrastructure. As demand for AI and high-performance computing grows and enterprises begin exploring hybrid quantum-classical architectures, Equinix’s ability to host and interconnect multiple computing platforms could support customer demand over the long term.

In the past six months, shares of this Zacks Rank #3 (Hold) company have gained 7.3% against the industry’s 1.8% decline.

Image Source: Zacks Investment Research

Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are Digital Realty Trust (DLR - Free Report) and Host Hotels & Resorts (HST - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

The Zacks Consensus Estimate for DLR’s 2026 FFO per share is pinned at $8.40. This indicates year-over-year growth of 13.67%.

The Zacks Consensus Estimate for HST’s 2026 FFO per share is pegged at $2.17. This calls for a year-over-year increase of 4.83%.

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.

Equinix offers a neutral interconnection platform critical for AI infrastructure, benefiting from broad enterprise and hyperscaler demand. Q2 results featured 16% revenue growth, 18-19% AFFO per share growth, record interconnection adds, and the largest guidance raise in the company's history. Management now targets 11-12% revenue and 10-12% AFFO per share growth for 2026, with a long-term outlook through 2029 of 10-13% revenue growth.

Adelante Capital Management LLC bought a new stake in Equinix, Inc. (NASDAQ:EQIX – Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The firm bought 123,901 shares of the financial services provider’s stock, valued at approximately $129,154,000. Equinix accounts for about 8.5% of Adelante Capital Management LLC’s holdings, making the stock its 3rd biggest holding. Adelante Capital Management LLC owned about 0.13% of Equinix at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Sumitomo Mitsui DS Asset Management Company Ltd increased its stake in shares of Equinix by 6.3% in the 4th quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 52,265 shares of the financial services provider’s stock worth $40,043,000 after purchasing an additional 3,108 shares in the last quarter. Legal & General Group Plc purchased a new position in Equinix in the 2nd quarter worth approximately $1,181,260,000. Northwestern Mutual Wealth Management Co. lifted its stake in Equinix by 5,149.9% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 128,097 shares of the financial services provider’s stock worth $98,143,000 after purchasing an additional 125,657 shares in the last quarter. Generali Asset Management SPA SGR boosted its stake in Equinix by 17.8% during the fourth quarter. Generali Asset Management SPA SGR now owns 9,772 shares of the financial services provider’s stock valued at $7,487,000 after buying an additional 1,478 shares during the last quarter. Finally, Nomura Asset Management Co. Ltd. grew its holdings in shares of Equinix by 3.4% in the fourth quarter. Nomura Asset Management Co. Ltd. now owns 180,884 shares of the financial services provider’s stock valued at $138,586,000 after purchasing an additional 5,991 shares in the last quarter. 94.94% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In EQIX has been the topic of several analyst reports. Raymond James Financial raised Equinix from a “market perform” rating to a “strong-buy” rating and set a $1,250.00 price objective on the stock in a research note on Thursday, April 30th. Evercore restated an “outperform” rating and issued a $1,270.00 target price on shares of Equinix in a research note on Tuesday, August 18th. Royal Bank Of Canada raised their price target on Equinix from $1,125.00 to $1,225.00 and gave the company an “outperform” rating in a research note on Wednesday, August 5th. HSBC restated a “buy” rating and issued a $1,400.00 price objective on shares of Equinix in a report on Friday, August 14th. Finally, Oppenheimer reiterated an “outperform” rating and set a $1,200.00 target price on shares of Equinix in a report on Thursday, April 30th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $1,203.40.

Check Out Our Latest Analysis on Equinix Equinix Stock Performance Shares of Equinix stock opened at $1,079.61 on Thursday. The company has a market capitalization of $106.53 billion, a PE ratio of 69.52, a P/E/G ratio of 1.52 and a beta of 0.99. The company has a 50-day simple moving average of $1,051.87 and a two-hundred day simple moving average of $1,029.59. Equinix, Inc. has a one year low of $720.62 and a one year high of $1,128.68. The company has a debt-to-equity ratio of 1.44, a quick ratio of 1.13 and a current ratio of 1.13.

Equinix (NASDAQ:EQIX – Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $11.78 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.73 by $7.05. Equinix had a net margin of 15.64% and a return on equity of 10.76%. The firm had revenue of $2.62 billion for the quarter, compared to the consensus estimate of $2.59 billion. During the same quarter in the previous year, the firm earned $9.91 EPS. The company’s quarterly revenue was up 16.4% compared to the same quarter last year. Equinix has set its FY 2026 guidance at 42.690-43.290 EPS. Research analysts expect that Equinix, Inc. will post 38.23 EPS for the current fiscal year.

Equinix Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Wednesday, August 19th will be issued a $5.16 dividend. This represents a $20.64 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend is Wednesday, August 19th. Equinix’s dividend payout ratio is 132.90%.

Insider Transactions at Equinix In related news, insider Brandi Galvin Morandi sold 3,726 shares of Equinix stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $1,076.36, for a total transaction of $4,010,517.36. Following the completion of the transaction, the insider directly owned 6,132 shares in the company, valued at approximately $6,600,239.52. This trade represents a 37.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Kurt Pletcher sold 135 shares of the business’s stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $1,075.50, for a total value of $145,192.50. Following the completion of the transaction, the insider directly owned 4,077 shares of the company’s stock, valued at $4,384,813.50. The trade was a 3.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 7,986 shares of company stock worth $8,370,777 over the last 90 days. 0.27% of the stock is currently owned by company insiders.

About Equinix (Free Report)

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.

Further Reading Five stocks we like better than Equinix Williams-Sonoma’s Quarter Gave Bulls More Than Just a Beat-and-Raise Alcoa’s Gallium Project Opens a New Door Beyond Aluminum Oura’s $16 Billion IPO Could Put a New Price on Wearable Tech Can Tesla’s Flying Roadster Distract From Its Real Risks?

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A month has gone by since the last earnings report for Equinix (EQIX - Free Report) . 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's Q2 AFFO Beat Estimates on Strong Demand & xScale FeesEquinix 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.

Equinix Recurring Revenues Rise Across RegionsRecurring 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.

Equinix Posts Record Platform ActivityCustomer 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.

Equinix Expands Margins on xScale FeesAdjusted 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.

Equinix Accelerates Capacity InvestmentTotal 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 Maintains a Growth-Focused Balance SheetEquinix 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.

Equinix Raises 2026 & Long-Term OutlookFor 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.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.

VGM ScoresAt 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.

OutlookEstimates 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.

SummaryData centers face soaring AI-driven demand amid mounting barriers to new supply, creating a scarcity effect and widening moats for established platforms.Digital Realty, Equinix, and Iron Mountain are industry leaders, but current valuations appear rich; I recommend waiting for a pullback.New entrants like Blackstone Digital Infrastructure Trust and Fermi America offer differentiated strategies, but BXDC lacks operating history and FRMI remains high-risk, pre-revenue.Alternative plays—Prologis, Blue Owl Capital, and American Tower —provide exposure to digital infrastructure at varying valuations and risk profiles.Looking for a helping hand in the market? Members of iREIT®+HOYA Capital get exclusive ideas and guidance to navigate any climate. Learn More » wildpixel/iStock via Getty Images

For more than two decades, I made my living as a real estate developer, building freestanding retail buildings, shopping centers, warehouses, and industrial properties. I also invested in billboards, medical office buildings, and residential real estate...but I never developed one property type: data centers.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of DLR, EQIX, IRM, BX, O, PLD, AMT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Advisors Capital Management LLC acquired a new position in shares of Equinix, Inc. (NASDAQ:EQIX – Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 801 shares of the financial services provider’s stock, valued at approximately $835,000.

Several other institutional investors and hedge funds also recently made changes to their positions in EQIX. BlackRock Inc. acquired a new position in shares of Equinix in the second quarter worth approximately $11,930,074,000. Norges Bank bought a new stake in shares of Equinix during the fourth quarter worth about $984,355,000. Deutsche Bank AG bought a new position in shares of Equinix during the 2nd quarter worth approximately $1,118,930,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Equinix by 408.1% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,186,497 shares of the financial services provider’s stock valued at $929,312,000 after acquiring an additional 953,001 shares during the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in shares of Equinix in the second quarter worth about $598,815,000. Institutional investors and hedge funds own 94.94% of the company’s stock.

Insider Buying and Selling at Equinix In other news, insider Brandi Galvin Morandi sold 3,726 shares of the company’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $1,076.36, for a total value of $4,010,517.36. Following the transaction, the insider directly owned 6,132 shares in the company, valued at approximately $6,600,239.52. This represents a 37.80% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Christopher B. Paisley sold 125 shares of the business’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $1,103.58, for a total value of $137,947.50. Following the completion of the sale, the director owned 13,734 shares in the company, valued at $15,156,567.72. This represents a 0.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 7,986 shares of company stock worth $8,370,777 in the last three months. 0.27% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In EQIX has been the topic of a number of research reports. Stifel Nicolaus raised their price objective on Equinix from $1,250.00 to $1,265.00 and gave the company a “buy” rating in a report on Thursday, July 30th. BTIG Research assumed coverage on Equinix in a report on Friday, July 10th. They issued a “buy” rating and a $1,210.00 target price on the stock. UBS Group upped their price objective on Equinix from $1,210.00 to $1,265.00 and gave the company a “buy” rating in a research report on Thursday, July 30th. Mizuho lifted their target price on shares of Equinix from $1,165.00 to $1,200.00 and gave the stock an “outperform” rating in a research report on Thursday, May 7th. Finally, Zacks Research lowered shares of Equinix from a “strong-buy” rating to a “hold” rating in a research report on Friday, May 15th. Two research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat, Equinix presently has a consensus rating of “Moderate Buy” and a consensus target price of $1,203.40. Get Our Latest Report on Equinix

Equinix Stock Down 1.6% EQIX opened at $1,065.39 on Friday. The company has a fifty day moving average of $1,052.66 and a two-hundred day moving average of $1,022.48. Equinix, Inc. has a fifty-two week low of $720.62 and a fifty-two week high of $1,128.68. The stock has a market capitalization of $105.12 billion, a price-to-earnings ratio of 68.60, a PEG ratio of 1.54 and a beta of 0.99. The company has a debt-to-equity ratio of 1.44, a quick ratio of 1.13 and a current ratio of 1.13.

Equinix (NASDAQ:EQIX – Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $11.78 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.73 by $7.05. The business had revenue of $2.62 billion for the quarter, compared to the consensus estimate of $2.59 billion. Equinix had a net margin of 15.64% and a return on equity of 10.76%. The company’s revenue was up 16.4% compared to the same quarter last year. During the same period last year, the firm posted $9.91 earnings per share. Equinix has set its FY 2026 guidance at 42.690-43.290 EPS. On average, research analysts expect that Equinix, Inc. will post 38.23 earnings per share for the current year.

Equinix Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Wednesday, August 19th will be given a $5.16 dividend. This represents a $20.64 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Wednesday, August 19th. Equinix’s dividend payout ratio is 132.90%.

Equinix Company Profile (Free Report)

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.

Featured Stories Five stocks we like better than Equinix Blueprint for a Boom: SEC Clears the Crypto Runway Ross Stores Just Flipped the Off-Price Retail Story After TJX’s Marmaxx Miss Advance Auto Parts Plunged, But Its Turnaround Is Still Working Is Palo Alto Networks Priced for Perfection Again as AI Security Demand Accelerates? Want to see what other hedge funds are holding EQIX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Equinix, Inc. (NASDAQ:EQIX – Free Report).

Receive News & Ratings for Equinix Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Equinix and related companies with MarketBeat.com's FREE daily email newsletter.

Bank of New York Mellon Corp purchased a new position in Equinix, Inc. (NASDAQ:EQIX – Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 574,464 shares of the financial services provider’s stock, valued at approximately $598,815,000. Bank of New York Mellon Corp owned about 0.58% of Equinix at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also modified their holdings of EQIX. Vanguard Group Inc. raised its holdings in Equinix by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 13,398,906 shares of the financial services provider’s stock valued at $10,265,706,000 after buying an additional 107,227 shares during the period. Cohen & Steers Inc. raised its holdings in shares of Equinix by 23.3% in the fourth quarter. Cohen & Steers Inc. now owns 2,609,011 shares of the financial services provider’s stock valued at $1,998,978,000 after buying an additional 493,141 shares during the last quarter. Geode Capital Management LLC lifted its position in Equinix by 1.0% during the 4th quarter. Geode Capital Management LLC now owns 2,567,830 shares of the financial services provider’s stock worth $1,959,731,000 after acquiring an additional 25,383 shares during the period. Principal Financial Group Inc. raised its stake in shares of Equinix by 1.4% during the 1st quarter. Principal Financial Group Inc. now owns 1,980,497 shares of the financial services provider’s stock worth $1,941,377,000 after buying an additional 27,643 shares in the last quarter. Finally, Northern Trust Corp increased its holdings in Equinix by 0.6% in the fourth quarter. Northern Trust Corp now owns 1,500,506 shares of the financial services provider’s stock valued at $1,149,628,000 after buying an additional 9,614 shares in the last quarter. Hedge funds and other institutional investors own 94.94% of the company’s stock.

Wall Street Analyst Weigh In EQIX has been the topic of a number of research analyst reports. Evercore reissued an “outperform” rating and issued a $1,270.00 price target on shares of Equinix in a research note on Tuesday. The Goldman Sachs Group lifted their price target on shares of Equinix from $894.00 to $1,015.00 and gave the stock a “neutral” rating in a research note on Thursday, April 30th. Barclays boosted their price target on shares of Equinix from $1,109.00 to $1,130.00 and gave the company an “equal weight” rating in a report on Wednesday, July 1st. Citigroup restated a “market outperform” rating on shares of Equinix in a report on Tuesday, August 4th. Finally, Cantor Fitzgerald lifted their target price on shares of Equinix from $1,186.00 to $1,211.00 and gave the company an “overweight” rating in a research note on Thursday, July 30th. Two analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $1,203.40.

Check Out Our Latest Report on EQIX Equinix Trading Down 1.6% EQIX stock opened at $1,065.39 on Friday. The company has a market capitalization of $105.12 billion, a PE ratio of 68.60, a price-to-earnings-growth ratio of 1.54 and a beta of 0.99. The company’s 50-day simple moving average is $1,052.66 and its 200 day simple moving average is $1,022.48. Equinix, Inc. has a 52 week low of $720.62 and a 52 week high of $1,128.68. The company has a debt-to-equity ratio of 1.44, a quick ratio of 1.13 and a current ratio of 1.13.

Equinix (NASDAQ:EQIX – Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $11.78 EPS for the quarter, topping analysts’ consensus estimates of $4.73 by $7.05. The company had revenue of $2.62 billion for the quarter, compared to analyst estimates of $2.59 billion. Equinix had a return on equity of 10.76% and a net margin of 15.64%.The firm’s quarterly revenue was up 16.4% on a year-over-year basis. During the same period in the previous year, the firm earned $9.91 earnings per share. Equinix has set its FY 2026 guidance at 42.690-43.290 EPS. As a group, sell-side analysts anticipate that Equinix, Inc. will post 38.23 earnings per share for the current year.

Equinix Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Wednesday, August 19th will be paid a $5.16 dividend. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $20.64 annualized dividend and a dividend yield of 1.9%. Equinix’s dividend payout ratio (DPR) is presently 132.90%.

Insider Activity In related news, Director Christopher B. Paisley sold 4,000 shares of the company’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $1,019.28, for a total value of $4,077,120.00. Following the transaction, the director owned 13,859 shares in the company, valued at $14,126,201.52. The trade was a 22.40% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Brandi Galvin Morandi sold 3,726 shares of the stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $1,076.36, for a total transaction of $4,010,517.36. Following the sale, the insider owned 6,132 shares in the company, valued at approximately $6,600,239.52. The trade was a 37.80% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 7,986 shares of company stock valued at $8,370,777. Company insiders own 0.27% of the company’s stock.

Equinix Profile (Free Report)

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.

Read More Five stocks we like better than Equinix Blueprint for a Boom: SEC Clears the Crypto Runway Ross Stores Just Flipped the Off-Price Retail Story After TJX’s Marmaxx Miss Advance Auto Parts Plunged, But Its Turnaround Is Still Working Is Palo Alto Networks Priced for Perfection Again as AI Security Demand Accelerates? Want to see what other hedge funds are holding EQIX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Equinix, Inc. (NASDAQ:EQIX – Free Report).

Receive News & Ratings for Equinix Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Equinix and related companies with MarketBeat.com's FREE daily email newsletter.

Data center firm Equinix (EQIX.O) said on Tuesday it has signed ​a new renewable energy Power ‌Purchase Agreement with Flo Energy Singapore, the California-based company's fourth such agreement ​in Singapore in the ​past two years.

The solar PPA will ⁠add at least 11.5 megawatt ​peak of capacity from industrial ​and commercial rooftop installations across Singapore, with an option to expand to up ​to 50 MWp.

Equinix's cumulative renewable ​energy portfolio in Singapore is expected to ‌reach ⁠215 MWp by 2028.

Collectively, Equinix's Singapore agreements are expected to generate about 250,000 MWh of electricity ​annually.

Flo is ​Singapore's largest ⁠independent electricity provider; Equinix is the first customer ​secured under Flo's newly ​launched ⁠Data Centre Solutions.

Including this PPA, Equinix has more than 1,490 MW ⁠of ​wind and solar PPAs ​under contract across 11 countries.

Bank Hapoalim BM purchased a new position in shares of Equinix, Inc. (NASDAQ: EQIX) in the undefined quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 1,494 shares of the financial services provider's stock, valued at approximately $1,557,000. Several other

Investors choosing between Schwab U.S. REIT ETF (SCHH +0.87%) and State Street Real Estate Select Sector SPDR ETF (XLRE +0.80%) must weigh the Schwab fund's lower cost against the SPDR trust's higher yield.

Both funds provide exposure to the domestic real estate market but follow different inclusion criteria. While the State Street fund limits its scope to the real estate components of the S&P 500, the Schwab fund offers a broader view of the U.S. equity real estate investment trust landscape. This analysis breaks down the cost structures, recent performance, and underlying holdings of both funds to help determine which strategy aligns with your portfolio goals and income needs.

Snapshot (cost & size)MetricXLRESCHHIssuerSPDRSchwabShare price (as of 8/10/26)$44.40$23.77Expense ratio0.08%0.07%1-yr return (as of 8/10/26)11.3%17.5%Dividend yield3.2%2.8%Beta0.960.93AUM$8.5 billion$11.3 billionBeta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

The Schwab fund is slightly more affordable with a 0.07% expense ratio, though the 0.01 percentage point difference is negligible for most portfolios. Income-focused investors may find the State Street fund more appealing, as it currently offers a higher payout with a 3.2% yield compared to the 2.8% yield provided by the Schwab fund.

Performance & risk comparisonMetricXLRESCHHMax drawdown (5 yr)(34.1%)(33.3%)Growth of $1,000 over 5 years (total return)$1,140$1,164What's insideThe Schwab U.S. REIT ETF seeks to track the total return of an index composed entirely of U.S. equity-classified real estate investment trusts. It maintains 100% exposure to the real estate sector and provides wide diversification through 121 holdings. Its largest positions include Welltower at 10.90%, Prologis at 8.65%, and Simon Property Group at 4.73%. It was launched in 2011. Schwab U.S. REIT ETF has paid $0.66 per share over the trailing 12 months, which on its recent $23.77 share price works out to a 2.8% yield.

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The State Street Real Estate Select Sector SPDR ETF mirrors the Real Estate Select Sector Index, which includes companies within the S&P 500 involved in real estate management, development, and equity REITs. It also has 100% real estate exposure but is more concentrated, holding 31 positions. Its top holdings include Welltower at 11.3%, Prologis at 8.95%, and Equinix (EQIX +3.08%) at 7%. It was launched in 2015. State Street Real Estate Select Sector SPDR ETF has paid $1.41 per share over the trailing 12 months, which on its recent $44.40 share price works out to a 3.2% yield.

NYSEMKT: XLRESelect Sector SPDR Trust - State Street Real Estate Select Sector SPDR ETF

Today's Change

(

0.80

%) $

0.36

Current Price

$

44.44

For more guidance on ETF investing, check out the full guide at this link.

Which looks like the better buySCHH and XLRE are two popular low-cost real estate exchange-traded funds. They’ve demonstrated similar results over the last five years in terms of both total return and maximum downside, and their betas indicate both are fairly steady investments relative to the S&P 500. Plus, their top holdings are pretty similar. So, which looks like the better buy today?

It likely comes down to what you want your real estate investment to look like. Holding SCHH means you hold only equity real estate investment trusts, or REITs, but you own a lot of them. REITs operate as landlords for large parcels of real estate. Welltower, for example, holds healthcare properties focused on senior living. Prologis, the world's largest industrial REIT, owns and manages logistics facilities, distribution centers, and warehouses. These are steady, income-generating businesses, and SCHH spreads its risk among a wider pool of equities.

XLRE also holds Welltower and Prologis as its two top investments, and its third-largest position, Equinix, is also a REIT, but XLRE doesn’t limit its portfolio to REITs only. It holds a broader selection of real estate-focused stocks, generating diversification through asset type, though its portfolio is much more concentrated, with only 31 holdings.

If your focus is on dividend yield alone, XLRE may be a slightly better selection. XLRE may also win out if you’re looking to hold a wider range of business structures outside of REITs. If you’re looking to spread risk across a wider portfolio by both number of holdings and assets under management, however, SCHH may be more appealing.

Equinix, Inc. (EQIX) Presents at TD Cowen 12th Annual Communications Infrastructure Summit Transcript

Equinix, Inc. (EQIX) Presents at The KeyBanc Technology Leadership Forum 2026 Transcript

Sovereign AI infrastructure is emerging as one of the largest capital cycles of the decade. Governments and hyperscalers are racing to build national compute capacity, and Nvidia (NASDAQ:NVDA | NVDA Price Prediction) anchors the buildout. Recent Q1 FY27 results made the scale plain: data center revenue of $75.25 billion, up 92% year over year, with sovereign AI demand contributing to customer diversification. Here we look at six stocks across the compute, data center, and power layers to see who stands to gain most.

Six Companies Betting on Sovereign AI Infrastructure Nvidia designs the GPUs and networking silicon that power AI factories. Advanced Micro Devices (NASDAQ:AMD) is the credible second source, with Instinct GPUs, EPYC CPUs, and a Helios rack-scale platform winning sovereign AI deployments in India, Korea, and the UAE.

Equinix (NASDAQ:EQIX) and Digital Realty Trust (NYSE:DLR) own the physical real estate where those chips live. Equinix emphasizes interconnection and data sovereignty, while Digital Realty focuses on hyperscale campuses.

Vertiv (NYSE:VRT) and Eaton (NYSE:ETN) sell the power and thermal equipment that keeps data centers running. Every new AI factory requires more transformers, busways, and liquid cooling loops.

Comparing the Fundamentals Company What They Sell Latest Growth Key Advantage Nvidia AI GPUs and networking Data center +92% Full-stack platform AMD Instinct GPUs, EPYC CPUs Data center +107% Alternative supplier Equinix Colocation, interconnection Revenue +16.4% Fabric Geo Zones Digital Realty Hyperscale data centers Revenue +16.2% 1.2 GW under construction Vertiv Power and thermal Revenue +24.1% Deep hyperscale ties Eaton Electrical power management Electrical Americas +18% Boyd Thermal acquisition Nvidia dominates in absolute scale. Q2 guidance of $91.0 billion would exceed AMD’s full-year revenue, and $119.0 billion in supply commitments signals multi-year visibility. AMD’s growth rate is higher, though off a smaller base.

Among real estate operators, Digital Realty landed a 200 megawatt AI inference lease, its largest hyperscale deal ever. Equinix booked a record 9,700 net interconnections in Q2 and raised its long-term growth outlook to 10-13% through 2029. Vertiv’s Americas segment grew 29.2%, and Eaton’s Electrical Americas rolling 12-month orders were up 41% organically.

What Management Is Saying Nvidia CEO Jensen Huang: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.”

AMD CEO Lisa Su: “We enter the second half with strong momentum as EPYC demand accelerates, Instinct deployments scale, and Helios begins to ramp.”

Equinix CEO Adaire Fox-Martin: “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.”

Vertiv CEO Giordano Albertazzi: “Demand for AI and general compute continues to intensify, and with each technology advancement, deployments grow more complex and more infrastructure-intensive.”

Huang sounds most emphatic. Su backs her tone with a $13 billion Q3 guide and a 2 gigawatt Anthropic deployment that is ramping. Fox-Martin ties her confidence directly to sovereign AI through Fabric Geo Zones, the industry’s first network-level data sovereignty solution.

Who Actually Benefits Most Nvidia looks best positioned. Sovereign AI diversifies its customer base, and its platform runs across every major cloud and frontier model. With $119.0 billion in supply commitments, roughly $91 billion in Q2 revenue guided, and 75.0% non-GAAP gross margins, the compute layer captures the biggest dollar share of every sovereign AI dollar spent. Shares are up 20.1% year to date.

AMD’s 107% data center growth and sovereign deals in Korea, India, and the UAE make it a genuine second beneficiary, with shares up 125.7% year to date. Equinix has the cleanest sovereignty story through Fabric Geo Zones. Vertiv and Eaton are the picks-and-shovels plays whose orders compound as every gigawatt of new AI capacity needs power and cooling.

The Bottom Line Sovereign AI spending flows across silicon, real estate, and power. Nvidia captures the largest share of the dollar flow, though AMD, Equinix, Digital Realty, Vertiv, and Eaton each capture different slices. Watch data center leasing velocity, Helios ramp progress, and electrical backlogs as leading indicators through 2027.

Contact [email protected] for any questions or corrections.

New contract model has Equinix cover full costs of transmission and power infrastructure, backed by a 20-year take-or-pay agreement for the Hampton, Ga. project

, /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company® and regional, not-for-profit utility cooperative Central Georgia Electric Membership Corporation (CGEMC) announced a new partnership to protect Hampton, Ga. ratepayers and surrounding communities. In keeping with the company's commitment to President Trump's Ratepayer Protection Pledge, Equinix will cover all grid infrastructure improvements and fund new transmission and power capacity needed to support growth and improve regional grid reliability and affordability for decades to come.

"The United States needs bold infrastructure investment, and we're proud to support efforts to drive economic growth and cutting-edge innovation while protecting ratepayers every step of the way," said Equinix Senior Vice President of Global Energy Adrian Anderson. "Our investment in Georgia shows the power of this idea in action. We've covered costs through an agreement that is locked in for more than 20 years, giving the community the certainty they can count on."

The agreement outlines that Equinix will cover any financial obligations CGEMC takes on for grid upgrades and new generation supply for the Hampton project, including unforeseen or shifting costs, guaranteeing that ratepayers are never left to pay costs associated with the project. Equinix will also supply up-front payments for the initial grid upgrade costs, covering a new high-voltage substation and two new high-voltage transmission lines, and early site assessments, modeling and engineering work. To lock in these provisions, Equinix and CGEMC have entered a 20-year "take-or-pay" style contract, meaning Equinix will pay 100% of CGEMC's costs for serving the contracted demand of the Hampton facility.

"This agreement with Equinix is a model for how utilities and data centers can come together to meet new power requests responsibly and fulfill President Trump's Ratepayer Protection Pledge," said CGEMC President & CEO George L. Weaver. "With this agreement in place, CGEMC can improve the reliability of our system, deliver economic opportunity to the region, and ensure large new customers are paying their fair share."

Equinix has been part of the metro Atlanta community for more than 15 years. Through the Hampton project, it will contribute up to $20 million annually in property tax revenue to the community, funding schools and emergency services, and will create more than 990 jobs from across the local economy. In 2023 alone, its presence contributed $23 million to household incomes in Atlanta from employment and value chain spend. The project will also extend Equinix's Pathways to Tech program to the region, which educates local students about careers in the data center industry. In 2025, Equinix hosted more than 60 data center tours and education sessions to engage over 1,800 students across 32 locations.

"Companies like Equinix are helping our state and nation stay at the forefront of innovative technology," said Georgia Governor Brian Kemp. "By partnering with Central Georgia EMC in this way, they are making key investments in the local community and protecting ratepayers at the same time."

"Hampton is proud to welcome this kind of responsible, long-term investment in our community," said Mayor Ann Tarpley. "Equinix's commitment to covering these infrastructure costs upfront means our residents and local businesses get the benefits of growth, new jobs, stronger schools, and a more reliable grid, without carrying the financial burden. This is exactly the kind of partnership that helps a city like ours grow the right way."

This agreement builds off Equinix's partnerships with PG&E in San Jose, Calif. and ComEd in Northern Illinois and can serve as a model for other projects across the country. 

Additional Resources

Equinix Together: Our five principles of community investment Blog: We're not just building data centers. We're building communities. 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.

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.

SOURCE Equinix, Inc.

HomeDividends AnalysisREITs AnalysisReal Estate Analysis

SummaryData center REIT Equinix gets prior buy rating reaffirmed after Q2 results in late July.Positives include an investment-grade rating from Fitch, strong dividend coverage, revenue and FFO growth, and global scale with few real competitors.Some downside is seen from a market pullback in EQIX stock and a low upside forecast in the near term, along with a rich valuation.This niche is dependent on high power and cooling needs, putting into question the durability of grids globally. Getty Images

A Prominent Data Center REIT Who Beat Q2 Earnings Estimates Recently Ahhh... the perfect combination of two sectors I've followed for many years, tech and real estate, and what better example of this than a mega data center REIT like

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Author does not hold any long positions in the Equinix stock directly, but does hold shares in REIT mutual funds who invest in a diversified portfolio that may include data center REITS, along with others.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company®, today announced that its executives will attend two upcoming investor conferences:

KeyBanc Technology Leadership Forum on Monday, August 10. Guy Danskine, Managing Director, Western United States, and Ryan Burke, Vice President, Investor Relations, will present at 9:00 a.m. MT. TD Cowen 12th Annual Communications Infrastructure Summit on Tuesday, August 11. Raouf Abdel, Executive Vice President, Global Operations, will present at 12:25 p.m. MT. The presentations will be made available via webcast on the Investor Relations section of the Equinix website at www.equinix.com/investors.

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.

SOURCE Equinix, Inc.

Also from this source

Equinix, Inc. (EQIX) Q2 2026 Earnings Call Transcript

3 Ways to Play the Data Center Land GrabEquinix 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.

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3 REITs to Watch as AI Data Center Spending Surpasses Office ConstructionAnnualized 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.

Financial Results and Updated 2026 Outlook 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.

3 Smart Investments If Interest Rates Stay Higher for LongerAdjusted 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. 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.

Capacity Expansion Accelerates 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.

Long-Term Growth Plan 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.

AI, Interconnection and Enterprise Demand 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.

About Equinix (NASDAQ:EQIX)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].

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Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company®, today announced that its Board of Directors has declared a quarterly cash dividend of $5.16 per share on its common stock. The quarterly common stock dividend will be paid on September 16, 2026, to shareholders of record on August 19, 2026.

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.

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, including statements related to Equinix's quarterly cash dividend. For a list and description of such risks and uncertainties, see 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.  

SOURCE Equinix, Inc.

Also from this source

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 , /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 $2.625 billion, a 16% increase over the same quarter of the previous year on both an as-reported basis and a normalized and constant currency basis driven by strong underlying performance and one-time xScale® fees Operating Income $665 million, a 35% increase over the same quarter of the previous year, primarily from strong underlying operating performance and the impact of one-time xScale fees Net Income Attributable to Common Stockholders and Net Income per Share Attributable to Common Stockholders $479 million, a 30% increase over the same quarter of the previous year, primarily from higher operating income $4.83 per share, a 29% increase over the same quarter of the previous year Adjusted EBITDA $1.396 billion, a record adjusted EBITDA margin of 53%, representing a 24% increase over the same quarter of the previous year on an as-reported basis, or a 22% increase on a normalized and constant currency basis AFFO and AFFO per Share $1.168 billion, a 20% increase over the same quarter of the previous year on an as-reported basis, or a 19% increase on a normalized and constant currency basis driven by strong operating performance and one-time xScale fees $11.78 per share, a 19% increase over the same quarter of the previous year on an as-reported basis, or an 18% increase on a normalized and constant currency basis 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

($ in millions, except per share data)

Prior FY 2026
Guidance

Guidance
Adjustment

Foreign
Exchange
Impact

Revised FY 2026
Guidance

Q3 2026
Guidance

Revenues

$10,144 - 10,244

+$100

($49)

$10,205 - 10,285

$2,525 - 2,575

Adjusted EBITDA

Adjusted EBITDA Margin %

$5,165 - 5,245

~51%

+$62

($27)

$5,210 - 5,270

~51%

$1,275 - 1,315

~51%

Recurring Capital Expenditures

% of Revenues

$280 - 300

~3%

+$13

($3)

$290 - 310

~3%

$70 - 90

3 - 4%

Non-recurring Capital Expenditures

(Excludes xScale and Real Estate Acquisitions)

~$3,800

+$1,438

($38)

$4,710 - 5,690

AFFO

$4,198 - 4,278

+$50

($18)

$4,240 - 4,300

AFFO per Share (Diluted)

$42.31 - 43.11

+$0.46

($0.18)

$42.69 - 43.29

Expected Cash Dividends

~$2,037

+$2

$0

~$2,039

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.

($ in millions)

Prior Outlook (1)

Updated Outlook

(2027 - 2029)

Total Revenue Growth

(Annual Range) (2)

7 - 10%

10 - 13%

Adjusted EBITDA Margin

(In 2029)

52%+

53%+

Total Capital Expenditures

(Annual Range) (3)

$3,000 - 4,000

$5,000 - 7,000

AFFO per Share Growth

(Annual Range)

5 - 9%

9 - 12%

Dividend per Share Growth

(Annual Range)

8%+

Approximates AFFO
per Share Growth

(1)

Prior outlook as provided on Wednesday, June 25, 2025.

(2)

Represents range of estimated annual growth rates through 2029. Assumes average currency rates used in our financial results remained the same over comparative periods. Excludes any future M&A activity.

(3)

Capital expenditures exclude any future M&A activity, real estate acquisitions and our investments in the xScale joint ventures.

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. 

EQUINIX, INC.

Condensed Consolidated Statements of Operations

(in millions, except share and per share data)

(unaudited)

Three Months Ended

Six Months Ended

June 30,

2026

March 31,

2026

June 30,

2025

June 30,

2026

June 30,

2025

Recurring revenues

$    2,377

$    2,331

$    2,143

$    4,708

$    4,230

Non-recurring revenues

248

113

113

361

251

Revenues

2,625

2,444

2,256

5,069

4,481

Cost of revenues

1,230

1,186

1,084

2,416

2,168

Gross profit

1,395

1,258

1,172

2,653

2,313

Operating expenses:

Sales and marketing

239

241

221

480

450

General and administrative

462

444

451

906

889

Restructuring and other exit charges

6

6

2

12

12

Transaction costs

3

8

3

11

9

Impairment charges

17

2

1

19

1

(Gain) loss on asset sales

3

(20)

—

(17)

—

Total operating expenses

730

681

678

1,411

1,361

Income from operations

665

577

494

1,242

952

Interest and other income (expense):

Interest income

36

41

52

77

99

Interest expense

(151)

(148)

(135)

(299)

(257)

Other income (expense)

(28)

1

(7)

(27)

2

Gain (loss) on debt extinguishment

1

—

1

1

1

Total interest and other, net

(142)

(106)

(89)

(248)

(155)

Income before income taxes

523

471

405

994

797

Income tax expense

(46)

(56)

(38)

(102)

(87)

Net income

477

415

367

892

710

Net (income) loss attributable to non-controlling interests

2

—

1

2

1

Net income attributable to common stockholders

$      479

$      415

$      368

$      894

$      711

Earnings (loss) per share ("EPS") attributable to common stockholders:

Basic EPS

$      4.86

$      4.22

$      3.76

$      9.07

$      7.28

Diluted EPS

$      4.83

$      4.20

$      3.75

$      9.04

$      7.26

Weighted-average shares for basic EPS (in thousands)

98,641

98,392

97,835

98,516

97,674

Weighted-average shares for diluted EPS (in thousands)

99,136

98,727

98,050

98,931

97,968

EQUINIX, INC.

Condensed Consolidated Balance Sheets

(in millions, except headcount)

(unaudited)

June 30,

2026

December 31,

2025

Assets

Cash and cash equivalents

$       979

$    1,727

Short-term investments

1,245

1,500

Accounts receivable, net

1,256

1,001

Other current assets

842

897

Total current assets

4,322

5,125

Property, plant and equipment, net

25,222

23,584

Operating lease right-of-use assets

1,296

1,392

Goodwill

5,912

5,984

Intangible assets, net

1,204

1,316

Other assets

3,120

2,740

Total assets

$   41,076

$   40,141

Liabilities, Redeemable Non-Controlling Interest and Stockholders' Equity

Accounts payable and accrued expenses

$    1,263

$    1,350

Accrued property, plant and equipment

723

564

Current portion of operating lease liabilities

156

155

Current portion of finance lease liabilities

176

168

Current portion of mortgage and loans payable

9

17

Current portion of senior notes

1,170

1,299

Other current liabilities

323

340

Total current liabilities

3,820

3,893

Operating lease liabilities, less current portion

1,211

1,304

Finance lease liabilities, less current portion

2,104

2,187

Mortgage and loans payable, less current portion

11

686

Senior notes, less current portion

18,519

16,910

Other liabilities

1,013

983

Total liabilities

26,678

25,963

Redeemable non-controlling interest

25

25

Common stockholders' equity:

Common stock

—

—

Additional paid-in capital

22,015

21,642

Treasury stock

(23)

(24)

Accumulated dividends

(13,231)

(12,202)

Accumulated other comprehensive loss

(1,374)

(1,359)

Retained earnings

6,995

6,099

Total common stockholders' equity

14,382

14,156

Non-controlling interests

(9)

(3)

Total stockholders' equity

14,373

14,153

Total liabilities, redeemable non-controlling interest and stockholders' equity

$   41,076

$   40,141

Ending headcount by geographic region is as follows:

Americas headcount

6,009

5,917

EMEA headcount

4,719

4,706

Asia-Pacific headcount

3,203

3,093

Total headcount

13,931

13,716

EQUINIX, INC.

Summary of Debt Principal Outstanding

(in millions)

(unaudited)

June 30,

2026

December 31,

2025

Finance lease liabilities

$    2,280

$    2,355

Term loans

1

673

Mortgage payable and other loans payable

19

30

Total mortgage and loans payable principal

20

703

Senior notes

19,689

18,209

Plus: debt issuance costs and debt discounts

164

150

Total senior notes principal

19,853

18,359

Total debt principal outstanding

$   22,153

$   21,417

EQUINIX, INC.

Condensed Consolidated Statements of Cash Flows

(in millions)

(unaudited)

Six Months Ended

June 30,

2026

June 30,

2025

Cash flows from operating activities:

Net income

$       892

$       710

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization and accretion

1,101

982

Stock-based compensation

273

240

Impairment charges

19

1

(Gain) loss on asset sales

(17)

—

Other operating activities

31

23

Changes in operating assets and liabilities:

Accounts receivable

(258)

(169)

Income taxes, net

(24)

(45)

Operating lease right-of-use assets

79

79

Operating lease liabilities

(77)

(71)

Accounts payable and accrued expenses

(80)

(149)

Other assets and liabilities

(155)

152

Net cash provided by operating activities

1,784

1,753

Cash flows from investing activities:

Purchases of equity investments

(264)

(48)

Distributions from equity investments

33

4

Purchases of short-term investments

(789)

(795)

Maturities and sales of short-term investments

1,054

450

Business acquisitions, net of cash acquired

—

(182)

Real estate acquisitions

(224)

(99)

Purchases of other property, plant and equipment

(2,834)

(1,739)

Proceeds from sale of assets, net of cash transferred

348

—

Settlement of foreign currency hedges

101

50

Investment in loan receivable

—

(45)

Net cash used in investing activities

(2,575)

(2,404)

Cash flows from financing activities:

Proceeds from employee equity programs

49

50

Payment of dividends

(1,029)

(928)

Proceeds from public offering of common stock, net of issuance costs

—

99

Proceeds from senior notes, net of debt discounts

2,419

2,066

Repayment of finance lease liabilities

(89)

(72)

Repayment of senior notes

(700)

—

Repayment of other debt

(682)

(1)

Other financing activities

26

(8)

Net cash provided by (used in) financing activities

(6)

1,206

Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash

(11)

53

Net increase (decrease) in cash, cash equivalents and restricted cash

(808)

608

Cash, cash equivalents and restricted cash at beginning of period

1,824

3,082

Cash, cash equivalents and restricted cash at end of period

$    1,016

$    3,690

Free cash flow (1)

$     (560)

$     (607)

Adjusted free cash flow (2)

$     (336)

$     (326)

(1)

We define free cash flow as net cash provided by operating activities plus net cash used in investing activities

(excluding the net purchases of and distributions from equity investments) as presented below:

Net cash provided by operating activities as presented above

$    1,784

$    1,753

Net cash used in investing activities as presented above

(2,575)

(2,404)

Less purchases of equity investments, net of distributions

231

44

Free cash flow

$     (560)

$     (607)

(2)

We define adjusted free cash flow as free cash flow as defined above, excluding any real estate and business

acquisitions, net of cash and restricted cash acquired as presented below:

Free cash flow (as defined above)

$     (560)

$     (607)

Less business acquisitions, net of cash and restricted cash acquired

—

182

Less real estate acquisitions

224

99

Adjusted free cash flow

$     (336)

$     (326)

EQUINIX, INC.

Non-GAAP Measures and Other Supplemental Data

($ in millions, except per share data)

(unaudited)

Three Months Ended

Six Months Ended

June 30,

2026

March 31,

2026

June 30,

2025

June 30,

2026

June 30,

2025

Recurring revenues

$    2,377

$    2,331

$    2,143

$     4,708

$     4,230

Non-recurring revenues

248

113

113

361

251

Revenues (1)

2,625

2,444

2,256

5,069

4,481

Cash cost of revenues (2)

790

765

707

1,555

1,434

Cash gross profit (3)

1,835

1,679

1,549

3,514

3,047

Cash operating expenses (4):

Cash sales and marketing expenses

162

162

146

324

306

Cash general and administrative expenses

277

272

274

549

545

Total cash operating expenses (4)

439

434

420

873

851

Adjusted EBITDA (5)

$   1,396

$   1,245

$   1,129

$     2,641

$     2,196

Cash gross margins (6)

70 %

69 %

69 %

69 %

68 %

Adjusted EBITDA margins (7)

53 %

51 %

50 %

52 %

49 %

FFO (8)

$      854

$      758

$      689

$     1,612

$     1,336

AFFO (9)(10)

$   1,168

$   1,065

$      972

$     2,233

$     1,919

Basic FFO per share (11)

$     8.66

$     7.70

$     7.04

$     16.36

$     13.68

Diluted FFO per share (11)

$     8.61

$     7.68

$     7.03

$     16.29

$     13.64

Basic AFFO per share (11)

$   11.84

$   10.82

$     9.94

$     22.67

$     19.65

Diluted AFFO per share (11)

$   11.78

$   10.79

$     9.91

$     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

$     1,290

Interconnection

256

251

231

507

460

Managed infrastructure

56

57

62

113

125

Other

8

7

4

15

7

Recurring revenues

1,067

1,046

951

2,113

1,882

Non-recurring revenues

184

45

53

229

123

Revenues

$    1,251

$    1,091

$    1,004

$     2,342

$     2,005

EMEA Revenues:

Colocation

$      633

$      613

$      572

$     1,246

$     1,139

Interconnection

105

106

96

211

183

Managed infrastructure

40

41

38

81

73

Other

28

29

26

57

53

Recurring revenues

806

789

732

1,595

1,448

Non-recurring revenues

39

38

35

77

62

Revenues

$      845

$      827

$      767

$     1,672

$     1,510

Asia-Pacific Revenues:

Colocation

$      392

$      386

$      359

$       778

$       701

Interconnection

92

89

80

181

157

Managed infrastructure

16

17

17

33

34

Other

4

4

4

8

8

Recurring revenues

504

496

460

1,000

900

Non-recurring revenues

25

30

25

55

66

Revenues

$      529

$      526

$      485

$     1,055

$       966

Worldwide Revenues:

Colocation

$    1,772

$    1,730

$    1,585

$     3,502

$     3,130

Interconnection

453

446

407

899

800

Managed infrastructure

112

115

117

227

232

Other

40

40

34

80

68

Recurring revenues

2,377

2,331

2,143

4,708

4,230

Non-recurring revenues

248

113

113

361

251

Revenues

$    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

$     2,168

Depreciation, 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

$       450

Depreciation and amortization expense

(51)

(52)

(50)

(103)

(97)

Stock-based compensation expense

(26)

(27)

(25)

(53)

(47)

Cash sales and marketing expense

162

162

146

324

306

General and administrative expense

462

444

451

906

889

Depreciation and amortization expense

(85)

(87)

(91)

(172)

(181)

Stock-based compensation expense

(100)

(85)

(86)

(185)

(163)

Cash general and administrative expenses

277

272

274

549

545

Cash 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

$       710

Income tax expense (benefit)

46

56

38

102

87

Interest income

(36)

(41)

(52)

(77)

(99)

Interest expense

151

148

135

299

257

Other (income) expense

28

(1)

7

27

(2)

(Gain) loss on debt extinguishment

(1)

—

(1)

(1)

(1)

Depreciation, amortization and accretion expense

557

544

502

1,101

982

Stock-based compensation expense

145

128

127

273

240

Restructuring and other exit charges

6

6

2

12

12

Impairment charges

17

2

1

19

1

Transaction costs

3

8

3

11

9

(Gain) loss on asset sales

3

(20)

—

(17)

—

Adjusted EBITDA

$    1,396

$    1,245

$    1,129

$     2,641

$     2,196

Americas

641

516

466

1,157

909

EMEA

456

424

399

880

764

Asia-Pacific

299

305

264

604

523

Adjusted 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

$       710

Net (income) loss attributable to non-controlling interests

2

—

1

2

1

Net income (loss) attributable to common stockholders

479

415

368

894

711

Adjustments:

Real estate depreciation

361

351

312

712

609

(Gain) loss on disposition of real estate assets

3

(20)

1

(17)

1

Adjustments for FFO from unconsolidated joint ventures

11

12

8

23

15

FFO 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

$     1,336

Adjustments:

Installation revenue adjustment

8

8

8

16

10

Straight-line rent expense adjustment

(4)

4

5

—

8

Contract cost adjustment

(11)

(15)

(10)

(26)

(17)

Amortization of deferred financing costs and debt discounts

7

7

6

14

11

Stock-based compensation expense

145

128

127

273

240

Stock-based charitable contributions

3

—

3

3

3

Non-real estate depreciation expense

139

138

137

277

271

(Gain) loss on disposition of non-real estate assets

—

—

—

—

2

Amortization expense

51

52

50

103

98

Accretion expense adjustment

6

3

3

9

4

Recurring capital expenditures

(49)

(32)

(55)

(81)

(81)

(Gain) loss on debt extinguishment

(1)

—

(1)

(1)

(1)

Restructuring and other exit charges

6

6

2

12

12

Transaction costs

3

8

3

11

9

Impairment charges

17

2

1

19

1

Income tax expense adjustment

(8)

—

4

(8)

10

Adjustments for AFFO from unconsolidated joint ventures

2

(2)

—

—

3

AFFO 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

$     2,196

Adjustments:

Interest expense, net of interest income

(115)

(107)

(83)

(222)

(158)

Amortization of deferred financing costs and debt discounts

7

7

6

14

11

Income tax expense

(46)

(56)

(38)

(102)

(87)

Income tax expense adjustment

(8)

—

4

(8)

10

Straight-line rent expense adjustment

(4)

4

5

—

8

Stock-based charitable contributions

3

—

3

3

3

Contract cost adjustment

(11)

(15)

(10)

(26)

(17)

Installation revenue adjustment

8

8

8

16

10

Recurring capital expenditures

(49)

(32)

(55)

(81)

(81)

Other income (expense)

(28)

1

(7)

(27)

2

Adjustments for (gain) loss on asset dispositions

—

—

1

—

3

Adjustments for unconsolidated JVs and non-controlling interests

15

10

9

25

19

AFFO 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)

98,641

98,392

97,835

98,516

97,674

Effect of dilutive securities:

Employee equity awards (in thousands)

495

335

215

415

294

Shares used in computing diluted net income per share, FFO per share and AFFO per share (in thousands)

99,136

98,727

98,050

98,931

97,968

Basic FFO per share

$     8.66

$     7.70

$     7.04

$     16.36

$     13.68

Diluted FFO per share

$     8.61

$     7.68

$     7.03

$     16.29

$     13.64

Basic AFFO per share

$    11.84

$    10.82

$     9.94

$     22.67

$     19.65

Diluted AFFO per share

$    11.78

$    10.79

$     9.91

$     22.57

$     19.59

SOURCE Equinix, Inc.