Shares of Equinix, Inc. EQIX have gained 38.9% over the past six months compared with the industry’s rise of 8.7%.
The company remains a key beneficiary of the multi-year shift toward hybrid multicloud architectures and higher AI-driven data exchange needs. Product innovation in Fabric and continued expansion activity support longer-term growth and a durable dividend.
Last month, this Zacks Rank #2 (Buy) REIT reported first-quarter 2026 AFFO per share of $10.79, up 11.6%, but marginally missed the Zacks Consensus Estimate. 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.
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Factors Behind EQIX's Stock Price Surge: Will This Trend Last?
Rising AI, cloud and networking workload lift demand for colocated and interconnected infrastructure across Equinix’s global footprint. Management noted that customer conversations have moved from piloting AI to enterprise-wide adoption at scale. The combination of edge proximity, interconnection density and sovereignty needs supports durable demand for Equinix’s neutral platform over multi-year investment cycles.
Equinix’s revenue base remains largely recurring, which helps convert bookings into predictable cash flow and supports operating leverage as utilization rises. In first-quarter 2026, recurring revenues grew 10% year over year on a normalized and constant currency basis. Given the growing demand for data exchanges across the world, Equinix is well-positioned to expand its revenue base. Management expects normalized monthly recurring revenue growth of 9%-10%in 2026.
The interconnection portfolio remains central as enterprises pursue hybrid multicloud architectures and need direct, high-performance connectivity. In first-quarter 2026, interconnection revenues increased 9% year over year on a normalized and constant currency basis. Operationally, net cabinet billing increased by 4,100, and net interconnection adds grew by 5,800, with a backlog of cabinets sold but not yet installed at record levels. These results build on the company’s scale advantage, which included surpassing 0.5 million interconnections worldwide by the end of 2025.
Equinix continues to invest to meet demand while using presales, disciplined site selection and partnerships to support returns on new capacity. In first-quarter 2026, the company had 46 major projects underway across 32 markets, including six xScale projects, with more than 70% of retail expansion capex directed to major metros. Total capital expenditures were $1.256 billion in the quarter, largely tied to IBX expansion and platform investment.
Equinix has maintained a shareholder return focus alongside growth investment. The company has increased its dividend five times in the last five years, and its five-year annualized dividend growth rate is 14.11%. While capital needs remain elevated, the recurring revenue model and growing AFFO per share outlook help support the dividend over time.
Other Stocks to Consider
Some other top-ranked stocks from the broader REIT sector are Chatham Lodging Trust REIT CLDT and Cousins Properties CUZ, carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CLDT’s 2026 FFO per share is pegged at $1.27, which indicates year-over-year growth of 24.5%.
The consensus estimate for CUZ’s full-year FFO per share is pinned at $2.93, which calls for a 3.2% increase from the year-ago period.
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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Equinix, Inc. (EQIX): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).