Equinix, Inc. EQIX reported third-quarter 2026 adjusted funds from operations (AFFO) per share of $11.64, up 18.4% year over year and above the Zacks Consensus Estimate of $10.51 by 10.8%.
Revenues increased 11% year over year to $2.57 billion, marginally surpassing the consensus mark of $2.57 billion by 0.1%. Strong underlying demand, improving pricing and record annualized gross bookings of $533 million, up 35% year over year, supported performance. Monthly recurring revenues registered double-digit growth for the fourth consecutive quarter.
EQIX Recurring Revenues Grow Across Regions
Recurring revenues reached $2.44 billion, up 10.2% from the prior-year quarter. Non-recurring revenues increased 27.7% to $129 million from $101 million.
Americas' revenues increased 10.9% year over year to $1.15 billion, with recurring revenues reaching $1.09 billion. EMEA revenues rose 12% to $878 million, while Asia-Pacific revenues increased 9.7% to $545 million.
EQIX Delivers Record Bookings & Interconnections
Customer demand remained robust as annualized gross bookings surpassed half a billion dollars for the first time. The company executed more than 25,000 transactions across over 3,200 customers, reflecting broad-based demand across its digital infrastructure ecosystem.
Equinix added 6,900 net interconnections during the third quarter, comprising 5,800 physical cross-connections and 1,100 virtual connections. Billed cabinets increased 5,700 sequentially to 313,300. Monthly recurring revenue per cabinet reached $2,574, supported by higher densities and firm pricing.
EQIX Posts Higher Profitability Despite Sequential Dip
Adjusted EBITDA increased 15.1% year over year to $1.32 billion. The adjusted EBITDA margin expanded to 51% from 50% in the year-ago quarter but contracted from 53% sequentially. The preceding quarter benefited from non-recurring xScale leasing fees.
Operating income advanced 26.6% year over year to $600 million. The cost of revenues increased 10.1% to $1.26 billion, while cash operating expenses edged up to $420 million from $416 million.
EQIX Accelerates Data Center Capacity Expansion
Total capital expenditures reached $1.56 billion compared with $1.14 billion in the year-ago quarter. Non-recurring capital expenditures totaled $1.49 billion, including $1.33 billion directed toward IBX data center expansion. Major retail project openings included facilities in Bogota, Dubai, Frankfurt and Miami.
The company had 48 announced retail expansion projects across 32 markets in 20 countries. It expects to deliver a record 13,450 sellable cabinets in the fourth quarter, with planned 2026 cabinet deliveries nearly 40% above initial expectations. More than 90% of retail expansion spending is associated with owned land or owned buildings under long-term ground leases.
EQIX Strengthens Liquidity to Support Growth
Equinix ended September with $2.36 billion in cash and cash equivalents and $1.24 billion in short-term investments. Available liquidity totaled $9.1 billion. The company also refinanced its existing revolving credit facility with a new $5.5-billion facility maturing in July 2031.
Total gross debt stood at approximately $25 billion, with a net leverage ratio of 4.1 times. During the third quarter, Equinix issued $3 billion of U.S.-dollar notes across four maturities. The company maintained a blended after-tax borrowing rate of 3.2%, with a weighted average debt maturity of 6.1 years.
EQIX Raises 2026 Outlook for Third Consecutive Quarter
For the fourth quarter of 2026, management projects revenues between $2.684 billion and $2.724 billion, implying 12-13% year-over-year growth on a normalized and constant-currency basis. Adjusted EBITDA is expected between $1.328 billion and $1.368 billion, reflecting a margin of 49-50%.
For 2026, Equinix raised its revenue guidance to $10.325-$10.365 billion from $10.205-$10.285 billion. Adjusted EBITDA is now projected between $5.290 billion and $5.330 billion, up from the previous guidance of $5.210-$5.270 billion, with a margin of approximately 51%.
AFFO per share is anticipated between $43.71 and $44.11, up from the previous guidance of $42.69-$43.29. The Zacks Consensus Estimate of $43.45 lies below the range.
EQIX’s Zacks Rank
Equinix carries a Zacks Rank #3 (Hold) 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
BXP, Inc. BXP reported third-quarter 2026 funds from operations (FFO) of $1.89 per share, beating the Zacks Consensus Estimate of $1.80 by 5%. FFO increased 8.6% from the year-ago quarter. Lease revenues increased 4.5% year over year to $846.2 million, surpassing the consensus mark of $839.9 million by 0.7%. Total revenues rose 4.6% to $911.4 million.
BXP’s results reflected better-than-projected portfolio performance, higher occupancy and growth in same-property net operating income (NOI), which supported the FFO and revenue beat.
Welltower Inc. WELL reported third-quarter 2026 normalized FFO of $1.67 per share, beating the Zacks Consensus Estimate of $1.64 by 1.8%. The metric increased 24.6% year over year. Total revenues of $3.72 billion surpassed the consensus mark of $3.63 billion by 2.5% and rose 38.4% year over year.
WELL’s results benefited from robust senior housing operating portfolio performance, with same-store NOI growth and improvement in average occupancy.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
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