Equinix Inc. reported fourth‑quarter 2025 results on February 11 2026, posting revenue of $2.420 billion, $41 million below the $2.461 billion consensus estimate. Earnings per share (FFO) came in at $2.69, a miss of $1.02 against the $3.71 consensus estimate. The revenue shortfall was largely driven by a modest decline in new lease sign‑ups and a one‑time restructuring charge, while recurring revenue grew 10% year‑over‑year, reflecting robust demand for AI‑centric workloads and a 42% year‑over‑year increase in bookings.
The 10% rise in recurring revenue was supported by a surge in monthly recurring revenue (MRR) and a continued expansion of interconnection services, with the company reporting more than 500,000 global interconnections. These metrics underscore the firm’s growing role as a central hub for data exchange and the high demand for AI‑ready infrastructure.
Equinix’s guidance for the first quarter of 2026 projects revenue of $2.496 billion to $2.536 billion, up 4% from the prior quarter, and a full‑year 2026 revenue outlook of $10.123 billion to $10.223 billion, both above analyst expectations. The company reaffirmed its adjusted EBITDA margin target of 51% for 2026, signaling confidence in pricing power and cost discipline as it scales AI‑driven services.
Management highlighted the strength of the current momentum: “Demand for our solutions has never been higher, as demonstrated by accelerated growth in both bookings and recurring revenue, and we are confident in our plan to deliver robust revenue and AFFO per share growth in 2026,” said President and CEO Adaire Fox‑Martin. CFO Keith Taylor added, “Equinix delivered its best quarter ever, by far. The magnitude of our quarterly activity, both across a substantial number of diverse deals, but also with over 3,400 customers, underscores that our strategy is working and meeting the opportunity in front of us.”
Investors reacted positively to the earnings release, citing the company’s strong guidance, record bookings growth, and the continued expansion of AI‑centric services as key drivers of confidence. The market’s favorable response reflects confidence in Equinix’s ability to capitalize on the growing AI infrastructure market, despite the earnings miss.
Equinix’s broader strategy includes a 10% dividend increase, aggressive capacity expansion with plans to double data‑center capacity by 2029, and a focus on AI‑ready xScale data centers. The firm also noted power constraints in major markets as a short‑term challenge, but the overall outlook remains optimistic given the high demand for AI workloads, which accounted for 60% of the largest deals in Q4 2025.
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