Snapshot

Equinix generated $9.2 billion of revenue in FY2025, with gross profit of $4.7 billion in FY2025, operating income of $1.8 billion in FY2025 and net income of $1.3 billion in FY2025. Diluted EPS was $13.76 in FY2025, and weighted average shares were 97.9 million shares in FY2025.

In Q2 FY2026, revenue was $2.6 billion, gross profit was $1.4 billion, operating income was $665.0 million and net income was $477.0 million. Diluted EPS was $4.83 in Q2 FY2026, on 98.6 million shares in Q2 FY2026. Market capitalisation was $99.5 billion as of September 28, 2026.

Growth

Revenue increased by 5.36% in FY2025 against FY2024, reaching $9.2 billion in FY2025. Revenue compound annual growth was 8.27% in FY2022–FY2025 and 8.97% in FY2020–FY2025. Diluted EPS grew 61.9% in FY2025 against FY2024 to $13.76 in FY2025; its compound annual growth was 21.5% in FY2022–FY2025 and 26.9% in FY2020–FY2025.

Free cash flow was −$1.4 billion in FY2025, compared with $93.0 million in FY2024, and its growth rate was −1,598.9% in FY2025 against FY2024. Free-cash-flow compound annual growth was not meaningful in FY2022–FY2025 and FY2020–FY2025. Revenue was $2.6 billion in Q2 FY2026, up 7.41% in Q2 FY2026 against Q1 FY2026 and 16.4% in Q2 FY2026 against Q2 FY2025. Diluted EPS was $4.83 in Q2 FY2026, up 15.0% sequentially and 28.8% year over year.

Profitability

Gross margin was 51.1% in FY2025, an increase of 2.2 percentage points in FY2024–FY2025 and 2.3 percentage points in FY2020–FY2025. Operating margin was 20.0% in FY2025, up 4.9 percentage points in FY2024–FY2025 and 2.5 percentage points in FY2020–FY2025. Pre-tax margin reached 16.4% in FY2025, increasing by 5.2 percentage points in FY2024–FY2025 and 7.8 percentage points in FY2020–FY2025.

Net margin was 14.6% in FY2025, compared with 6.17% in FY2020; the five-year change was 8.5 percentage points in FY2020–FY2025. Return on equity was 9.75% in FY2025, return on assets was 3.59% in FY2025 and return on invested capital was 3.76% in FY2025. In Q2 FY2026, gross margin was 53.1% and operating margin was 25.3%. Industry median profitability measures are not reported.

Balance sheet

Total debt was $19.8 billion in FY2025, up from $16.1 billion in FY2024. Net debt was $16.6 billion in FY2025, while cash and short-term investments were $3.2 billion in FY2025. Shareholders’ equity was $14.2 billion in FY2025, and book value per share was $144.59 in FY2025.

At Q2 FY2026, net debt was $18.4 billion, compared with $16.8 billion in Q1 FY2026 and $13.7 billion in Q2 FY2025. The current ratio was 1.1× in Q2 FY2026, and debt to equity was 1.4× in Q2 FY2026. Working capital was $1.2 billion in FY2025, lower than $2.1 billion in FY2024. The balance-sheet figures show higher debt and net debt at the latest reported quarter than at both comparison quarters.

Cash flow & capital return

Operating cash flow was $3.9 billion in FY2025, up 20.4% in FY2025 against FY2024. Capital expenditure was $5.3 billion in FY2025, compared with $3.2 billion in FY2024, and free cash flow was −$1.4 billion in FY2025. Free cash flow represented −103.4% of net income in FY2025.

For the TTM to Q2 FY2026, operating cash flow was $3.9 billion and free cash flow was −$2.2 billion. Free cash flow was −$522.0 million in Q2 FY2026, following −$404.0 million in Q1 FY2026; the sequential growth rate was not meaningful in Q2 FY2026 against Q1 FY2026.

Dividends paid were $1.9 billion in FY2025, while net share repurchases were −$194.0 million in FY2025. Capital returned to shareholders was $1.7 billion in FY2025. Weighted average shares increased by 11.6% in FY2020–FY2025.

Valuation

As of September 28, 2026, the P/E was 64.7×, below the five-year median P/E of 86.2× over the five fiscal years to FY2025 and below the ten-year median P/E of 103× over the ten fiscal years to FY2025. The P/E was higher than the industry median of 26.5× as of September 28, 2026.

As of September 28, 2026, P/S was 10.2×, above the five-year median of 9.3× and the ten-year median of 8.6×, and above the industry median of 5.9×. P/B was 6.9× as of September 28, 2026, above its five-year median of 6.1×, ten-year median of 5.7× and industry median of 2.2×. EV/Sales was 12.0× as of September 28, 2026, above its five-year median of 10.8×, ten-year median of 10.3× and industry median of 8.8×. EV/Cash flow was not meaningful as of September 28, 2026.

What changed since last quarter

Revenue rose to $2.6 billion in Q2 FY2026 from $2.4 billion in Q1 FY2026, a 7.41% increase in Q2 FY2026 against Q1 FY2026. Revenue increased 16.4% in Q2 FY2026 against Q2 FY2025. Management attributes regional revenue growth in the three months ended June 30, 2026 to higher orders from existing and new customers and to the realization of strong bookings.

Operating income was $665.0 million in Q2 FY2026, versus $577.0 million in Q1 FY2026 and $494.0 million in Q2 FY2025. Operating margin increased by 1.7 percentage points in Q2 FY2026 against Q1 FY2026 and by 3.4 percentage points in Q2 FY2026 against Q2 FY2025. Management attributes the higher operating income to revenue growth, while citing higher depreciation related to data-center expansions and higher utilities expenses within costs of revenue. Net income was $477.0 million in Q2 FY2026, versus $415.0 million in Q1 FY2026 and $367.0 million in Q2 FY2025.

Open questions

• How will power availability and cooling requirements affect the pace and cost of expansion?
• How will additional capital expenditures and potential financing arrangements affect free cash flow and net debt?
• How much of recent booking activity will convert into revenue over future periods?
• How will changes in utility costs, renewable-energy costs and foreign exchange rates affect operating costs?

Sources

• Form 10-Q filed July 29, 2026 — management’s discussion and analysis