$EQIX

eqıx q4 2025 financial results and 2026 outlook Even though Equinix reported revenue and AFFO (Adjusted Funds From Operations) that came in below analyst expectations (miss) in Q4 2025, the stock price showed a sharp rise of around 11% in pre-market trading.
The main reason is not past performance, but extremely strong forward guidance. The company stated that AI demand is "higher than ever before" and provided 2026 guidance above consensus on both revenue and AFFO.
q4 2025 fınancıal outlook While the market initially focused on the "miss” in the headline numbers, operational efficiency stands out in the details.
Revenue: $2.42B (YoY +7%). It came in about $40M below expectations. AFFO/Share: $8.91 (Consensus: $9.12). It came in below expectations. Note: Management stated that a shift in xScale leasing timing (Hampton project) slipping from Q4 to Q1 2026 was effective in this deviation. Bookings: Record on a quarterly basis. $474M in Q4 (YoY +42%). This is the most critical leading indicator showing that demand is not slowing, on the contrary it is accelerating.
2026 EXPECTATIONS The main engine behind the stock’s 11% gap open is the financial reflection of the “Build Bolder” strategy presented by management.
2026 Revenue Expectation: $10.123B - $10.223B (Midpoint: $10.173B). It is above the market expectation of $10.1B. 2026 AFFO/Share Expectation: $41.93 - $42.74 (Midpoint: $42.34). It is clearly above the market expectation of $40.92. Dividend Increase: The quarterly dividend was increased by 10% to $5.16 per share.
operatıonal strength and the aı story According to transcript data, Equinix is not just a real estate company (REIT), it is the “neutral interconnector” of AI infrastructure.
AI Domination: 60% of the largest deals are driven by AI workloads (previously 50%). Enterprise AI: This demand is not only coming from cloud giants (hyperscalers); companies in retail, finance, and manufacturing are also choosing Equinix to build their own “Enterprise AI” infrastructure (e.g., Salesforce, Honeywell). Interconnection Moat: It reached more than 500,000 interconnections worldwide. This is more than twice its closest competitor, and it shows the company is protecting its competitive moat.
rısks and thıngs to watch High CapEx: $3.7B - $4.2B of investment is expected for 2026. While necessary for growth, it can create pressure on cash flow. Timing Risk: Operational delays like the xScale leasing delays that caused the Q4 “miss” can create quarterly volatility.