Equinix raises annual revenue outlook after record gross bookings
Overview
Digital infrastructure firm's Q3 revenue rose 11% yr/yr, slightly beating analyst expectations
Q3 net income beat analyst expectations
Company raised full-year 2026 guidance for third consecutive quarter
Outlook
Equinix raises 2026 revenue guidance to $10.325-$10.365 bln
Company expects 2026 adjusted EBITDA of $5.290-$5.330 bln
Company expects 2026 AFFO per share of $43.71-$44.11
Result Drivers
RECURRING REVENUE GROWTH - Co said double-digit growth in monthly recurring revenue was driven by demand for traditional and AI workloads
INTERCONNECTION DEMAND - Co reported 10% yr/yr interconnection revenue growth and 24% Fabric revenue growth, citing robust demand
BOOKINGS AND PRICING - Record gross bookings rose 35% yr/yr, attributed to robust demand and stronger pricing
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Beat* | $2.57 bln | $2.56 bln (25 Analysts) |
Q3 EPS | $4.93 | ||
Q3 Net Income | Beat | $489 mln | $408.51 mln (14 Analysts) |
Q3 Income From Operations | Slight Beat* | $600 mln | $598.88 mln (18 Analysts) |
Q3 Pretax Profit | Beat | $537 mln | $464.15 mln (14 Analysts) |
Q3 Basic EPS | $4.95 | ||
Q3 Gross Profit | $1.31 bln | ||
Q3 Operating Expenses | $714 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 30 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialized reits peer group is "buy"
Wall Street's median 12-month price target for Equinix, Inc. is $1,237.50, about 23.8% above its October 27 closing price of $999.38
The stock recently traded at 54 times the next 12-month earnings vs. a P/E of 56 three months ago
Reuters Recommended Reads
Oct 28 - Vertiv beats Q3 revenue, profit estimates; raises FY guidance
Oct 27 - WP Carey Q3 revenue beats estimates, raises annual AFFO forecast on strong investment activity
Oct 27 - Extra Space Storage Q3 core FFO rises; lifts 2026 outlook on stronger same-store performance
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)