Equinix, Inc. (EQIX) Earnings & Analysis

Latest quarter

Equinix reported Q2 FY2026 revenue of $2.6 billion, up 16.4% from $2.3 billion a year earlier. Revenue beat the consensus by 1.34%, although both the reported and estimated figures round to $2.6 billion. Adjusted earnings per share, as counted by the consensus, were $11.78 against an estimate of $11.25, a 4.71% beat.

CFO Olivier Leonetti said recurring revenue grew 11% year over year on a normalized, constant-currency basis, while xScale leases contributed approximately $120 million in non-recurring fees. Equinix reported diluted earnings per share of $4.83, up from $3.75 a year earlier.

Equinix’s gross margin rose to 53.1% from 52.0%, and its operating margin rose to 25.3% from 21.9%. The company reported free cash flow of −$522.0 million, compared with −$127.0 million a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Adaire Fox-Martin said the vast majority of Equinix’s largest Q2 deals were driven by AI workloads. She described demand as coming from enterprises modernizing their infrastructure as well as new AI-native workloads and their service providers. In the Q&A, she said, “AI is an accelerant to the ongoing digitization activities of our customers.”

Fox-Martin said annualized gross bookings were $424 million in Q2, up 23% year over year, alongside approximately $110 million of pre-selling activity. She said Equinix had sold approximately 30% of its remaining 2026 retail capacity expansion. The company added 9,700 net interconnections in the quarter, she said.

Asked about deal structures and pricing, Fox-Martin said deal density was increasing as customers sought capacity for their energy and computing needs. She said, “Our pricing has remained very firm,” and pointed to potential pricing opportunities in constrained markets, including Frankfurt, Amsterdam and Ashburn.

CFO Olivier Leonetti said Q2 adjusted EBITDA margin was 53%, up 300 basis points year over year, helped by cost discipline, operating leverage and leasing fees. Excluding those fees, he said, the margin rose approximately 150 basis points. He said quarterly capital expenditures were about $1.6 billion, approximately 90% of which went toward capacity expansion.

On funding, Leonetti told an analyst that Equinix expected to use retained cash flow and debt while maintaining investment-grade credit ratings. Fox-Martin said the company had pre-purchased some equipment and could move it across its data-center footprint to manage supply constraints.

For Q3, Leonetti said on the call that Equinix anticipated normalized, constant-currency total revenue growth of 10 to 12% year over year and an adjusted EBITDA margin of 51%.

Guidance

In its October release, Equinix raised its FY2026 revenue outlook to $10.3 billion–$10.4 billion from $10.2 billion–$10.3 billion. The company also expects FY2026 adjusted EBITDA of $5.290 billion to $5.330 billion, compared with its July outlook of $5.210 billion to $5.270 billion.