Equinix, Inc. EQIX reported first-quarter 2026 adjusted funds from operations (AFFO) per share of $10.79, up 11.6% from $9.67 a year ago but missing the Zacks Consensus Estimate of $10.89 by 0.9%.
Total revenues were $2.44 billion, up 9.8% year over year, but below the consensus mark of $2.51 billion by 2.6%. Results reflected solid demand for digital infrastructure, even as higher costs weighed modestly on consensus comparisons. Annualized gross bookings of $378 million stood out in the quarter.
EQIX Recurring Revenues Rise Across Regions
Recurring revenues were $2.33 billion in the first quarter of 2026, up from $2.09 billion a year ago, while non-recurring revenues were $113 million compared with $138 million in the prior-year quarter.
By geography, recurring revenues from the Americas, the EMEA and Asia Pacific rose 12.4%, 10.2% and 12.7%, respectively, year over year. Although non-recurring revenues from the EMEA increased 40.7%, they decreased 35.7% and 26.8% in the Americas and Asia Pacific, respectively.
EQIX Logs Record Bookings and Deepens AI Momentum
EQIX delivered $378 million of annualized gross bookings in the quarter and cited the largest first-quarter bookings in the company’s history, leading to a record backlog. The company also reported record annualized presales of roughly $140 million, underscoring continued customer commitments even as deployments phase in over time.
Customer activity remained broad-based. Management noted that the company completed more than 3,800 transactions with over 3,100 unique customers and processed more than 20,000 self-service orders, indicating sustained engagement across its platform. About 60% of the company’s largest deals were described as AI-related, supporting high-density AI infrastructure demand.
EQIX Expands Operating Profit as Expenses Stay Elevated
EQIX generated operating income of $577 million in the first quarter of 2026, up from $458 million in the year-ago quarter, reflecting stronger underlying operating performance.
The company posted adjusted EBITDA of $1.25 billion, up 16.7% year over year, while adjusted EBITDA margin came in at 51%, marking a record margin level. The cost structure remained sizable, with cost of revenues rising 9.4% to $1.19 billion, sales and marketing expense increasing 5.2% to $241 million and general and administrative expense growing $4 million to $444 million.
EQIX Maintains Liquidity While Funding Heavy Investment
EQIX ended the quarter with a sizable liquidity cushion and continued to invest for growth. The company cited roughly $7.1 billion of available liquidity and about $20 billion of total gross debt, with net leverage of 3.8x, reflecting a balance sheet positioned to support expansion while managing funding costs.
Capital intensity remained high. Total capital expenditures were $1.26 billion in the quarter, including $32 million of recurring capital expenditures and $1.22 billion of non-recurring spend.
Equinix Raises 2026 Outlook After Strong Q1 Execution
Equinix raised its full-year 2026 outlook across key metrics following the quarter. The company now expects full-year revenues of $10.144-$10.244 billion, compared to the prior guided range of $10,123-10,223. Management predicts an adjusted EBITDA of $5.165-$5.245 billion and an adjusted EBITDA margin of about 51%.
AFFO is projected at $4.198-$4.278 billion, with AFFO per share expected at $42.31-$43.11, up from $41.93-42.74 guided earlier. The Zacks Consensus Estimate of $42.36 lies within the range.
For second-quarter 2026, management guided revenues to $2.571-$2.611 billion, implying a 9-10% increase over the prior quarter. Adjusted EBITDA is expected in the range of $1.349-$1.389 billion, with around a 52-53% margin.
EQIX’s Zacks Rank
Equinix carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Equinix, Inc. Price, Consensus and EPS Surprise
Equinix, Inc. price-consensus-eps-surprise-chart | Equinix, Inc. Quote
Performance of Other REITs
W. P. Carey Inc. WPC delivered first-quarter 2026 AFFO per share of $1.30, topping the Zacks Consensus Estimate by 1.6%. Revenues of $453.02 million also came ahead of the consensus mark of $451.06 million, a 0.4% surprise, and rose 11.2% year over year.
WPC’s results reflected the accretive impact of net investment activity and contractual rent escalations across the net-lease portfolio. Contractual same-store rent registered 2.4% growth year over year on a constant-currency basis.
Digital Realty Trust DLR posted first-quarter 2026 core FFO of $2.04 per share, up 15.3% from $1.77 a year ago. The results beat the Zacks Consensus Estimate of $1.94, delivering a 5.15% earnings surprise.
Total operating revenues were $1.635 billion, up 16.2% from $1.408 billion in the year-ago quarter. Revenues also topped the consensus mark of $1.609 billion by 1.6%, supported by DLR’s strong leasing activity and healthy commencements from a growing backlog.
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.
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