Equinix Reports Third-Quarter Results and Raises 2026 Guidance

Interconnection revenue grew 10% year over year, while monthly recurring revenue posted its fourth consecutive quarter of double-digit growth.

Rhea-AI Summary

Equinix (EQIX) raised its full-year 2026 guidance for the third consecutive quarter after reporting third-quarter revenue of $2.571 billion. Revenue rose 11% year over year as reported. Net income attributable to common stockholders increased 31% to $489 million, or $4.93 per diluted share, helped by a non-recurring fee from the atNorth joint venture investment.

Annualized gross bookings reached $533 million, up 35% year over year. Equinix completed its atNorth investment alongside CPP Investments and plans nearly 40% more cabinet deliveries in 2026 than initially anticipated. The company now expects full-year revenue of $10.325–$10.365 billion, adjusted EBITDA of $5.290–$5.330 billion and adjusted funds from operations, a non-GAAP performance measure, of $43.71–$44.11 per diluted share. Expected total capital expenditures are $5–$6 billion.

20 points · 1 major

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0 major · 3 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 revenue guidance raised to $10.325–$10.365 billion, approximately 12% growth as reported and normalized at constant currency.
• Moderate pointThird-quarter revenue rose 11% as reported and 12% normalized at constant currency to $2.571 billion year over year.
• Moderate pointOperating income increased 27% year over year to $600 million.
• Moderate pointCommon-stockholder net income rose 31% to $489 million year over year, helped by a non-recurring atNorth fee.
• Moderate pointAdjusted EBITDA rose 15% as reported and 14% normalized at constant currency to $1.321 billion year over year.
• Moderate pointAFFO reached $1.156 billion, up 20% as reported; normalized constant-currency growth excluding the atNorth fee was 14%.
• Moderate pointAnnualized gross bookings reached a record $533 million, up 35% year over year.
• Moderate pointMonthly recurring revenue grew double digits year over year for the fourth consecutive quarter.
• Moderate point. Forward-looking: it has not happened yet and may not happen.2026 cabinet deliveries are planned nearly 40% above initial expectations.
• Moderate pointatNorth investment completed alongside CPP Investments, expanding Equinix's Nordic data center footprint.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter revenue expected at $2.684–$2.724 billion, with 12–13% normalized constant-currency growth year over year.

9 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBITDA guidance raised to $5.290–$5.330 billion, with approximately 51% margin, expanding approximately 200 basis points year over year.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 adjusted funds from operations guidance raised to $4.340–$4.380 billion.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 diluted AFFO guidance raised to $43.71–$44.11 per share, up 11–12% normalized at constant currency.
• Minor pointDiluted earnings per share increased 29% year over year to $4.93.
• Minor pointDiluted AFFO per share reached $11.64, up 18% as reported; normalized constant-currency growth excluding the atNorth fee was 12%.
• Minor pointInterconnection revenue grew 10% year over year, both as reported and normalized at constant currency.
• Minor pointFabric revenue grew 24% year over year, both as reported and normalized at constant currency.
• Minor pointNet interconnections increased by 6,900 during the quarter.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter adjusted EBITDA expected at $1.328–$1.368 billion, with a 49–50% margin.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.2026 total capital expenditures expected to reach $5–$6 billion.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Hampton data center grid infrastructure costs will be fully funded by Equinix under a 20-year commitment.
• Minor point. Forward-looking: it has not happened yet and may not happen.Expected 2026 cash dividends revised to approximately $2,037 million from approximately $2,039 million.

News Explained

Equinix reports an established Georgia partnership under which it will fund all grid infrastructure costs for its Hampton data center through a 20-year commitment, placing those project costs on the company rather than ratepayers.

Key Figures

Q3 revenue: $2.571 billion; up 11% Q3 operating income: $600 million; up 27% Q3 net income: $489 million; up 31% +5 more

Q3 revenue

$2.571 billion; up 11%

Third quarter 2026, year over year, as reported

Q3 operating income

$600 million; up 27%

Third quarter 2026, year over year

Q3 net income

$489 million; up 31%

Attributable to common stockholders, year over year

Q3 Adjusted EBITDA

$1.321 billion; up 15%

Third quarter 2026, year over year, as reported

Q3 AFFO

$1.156 billion; up 20%

As reported; up 14% on a normalized and constant currency basis excluding the atNorth joint venture fee

FY 2026 revenue guidance

$10.325–$10.365 billion

Revised full-year 2026 guidance

FY 2026 Adjusted EBITDA guidance

$5.290–$5.330 billion

Revised full-year 2026 guidance

FY 2026 AFFO per share guidance

$43.71–$44.11

Revised full-year 2026 guidance; diluted

Historical Context

1 past event · Latest: Sep 02

1 event

1. Sep 02

   atNorth acquisition

   24h Move

   -0.8%

   Completed atNorth acquisition; Equinix held about 34% with a US$895 million commitment.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, affo, non-gaap financial measures

3 terms

adjusted ebitda financial

"Adjusted EBITDA$1.321 billion, a 15% increase over the same quarter"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

affo financial

"AFFO and AFFO per Share$1.156 billion, a 20% increase"

AFFO (Adjusted Funds from Operations) is a measure of how much cash a real estate company or investment trust generates from its core operations after subtracting routine upkeep, leasing costs and other recurring expenses. Investors use it as a rough proxy for the cash available to pay dividends or reinvest, like checking how much money remains in your household budget after paying regular bills to see what you can spend or save.

non-gaap financial measures financial

"Equinix uses certain non-GAAP financial measures"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Delivered record annualized gross bookings of $533 million, up 35% year over year, on robust demand and strengthening pricing
  
  
• Grew monthly recurring revenue by double digits year over year for the fourth consecutive quarter, reflecting the company's central role in serving traditional and AI workloads
  
  
• Achieved 10% year over year interconnection revenue growth on both an as-reported and a normalized and constant currency basis, with Fabric revenue up 24% year over year on both an as-reported and a normalized and constant currency basis
  
  
• Accelerated new capacity delivery, with nearly 40% more cabinets planned for delivery in 2026 than initially anticipated
  
  
• Raised full-year 2026 guidance for the third consecutive quarter based on strong operating and financial performance

REDWOOD CITY, Calif., Oct. 28, 2026 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company^®, today reported results for the quarter ended September 30, 2026.

"Our Q3 results and raised full-year guidance reflect the differentiated position and growing importance of Equinix," said Adaire Fox-Martin, CEO and President, Equinix. "We delivered double-digit growth across the key metrics that drive long-term value creation, including interconnection and monthly recurring revenue, and we accelerated capacity to meet broad-based demand. We also unveiled Equinix Fabric One and Equinix Inference Exchange to enable enterprise customers to run, connect, and orchestrate their most critical workloads. Our diverse customer base, expanding ecosystem, and balance sheet strength position us well for sustained, profitable growth and shareholder value."

Third-Quarter 2026 Results Summary

• Revenues
  • $2.571 billion, an 11% increase over the same quarter of the previous year on an as-reported basis and a 12% increase on a normalized and constant currency basis driven by strong underlying performance
• Operating Income
  • $600 million, a 27% increase over the same quarter of the previous year, primarily from strong underlying operating performance
• Net Income Attributable to Common Stockholders and Net Income per Share Attributable to Common Stockholders
  • $489 million, a 31% increase over the same quarter of the previous year, primarily from higher operating income and a non-recurring fee earned in connection with our investment in the atNorth joint venture
  • $4.93 per share, a 29% increase over the same quarter of the previous year
• Adjusted EBITDA
  • $1.321 billion, a 15% increase over the same quarter of the previous year on an as-reported basis, or a 14% increase on a normalized and constant currency basis
• AFFO and AFFO per Share
  • $1.156 billion, a 20% increase over the same quarter of the previous year on an as-reported basis, or a 14% increase on a normalized and constant currency basis excluding the benefit of the atNorth joint venture fee
  • $11.64 per share, an 18% increase over the same quarter of the previous year on an as-reported basis, or a 12% increase on a normalized and constant currency basis excluding the benefit of the atNorth joint venture fee

Equinix uses certain non-GAAP financial measures, which are described further below and reconciled to the most comparable GAAP financial measures after the presentation of our GAAP financial statements.

Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, stock-based compensation and other components of net income or loss from operations, and as a result, is not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data without unreasonable effort. The impact of such adjustments could be significant. Equinix intends to calculate the various non-GAAP financial measures in future periods consistent with how they were calculated for the periods presented within this press release.

All per-share results are presented on a fully diluted basis.

2026 Guidance Summary

($ in millions, except per share data)	Prior FY 2026 Guidance	Underlying Adjustment	atNorth Joint Venture	Foreign Exchange Impact	Revised FY 2026 Guidance	Q4 2026 Guidance
Revenues	$10,205 - 10,285 11 - 12%	+$84		+$16	$10,325 - 10,365 ~12%	$2,684 - 2,724 12 - 13%
Adjusted EBITDA                Adjusted EBITDA Margin %	$5,210 - 5,270 ~51%	+$59		+$11	$5,290 - 5,330 ~51%	$1,328 - 1,368 49 - 50%
Recurring Capital Expenditures % of Revenues	$290 - 310 ~3%				$290 - 310 ~3%	$141 - 161 5 - 6%
Non-recurring Capital Expenditures (Excludes xScale and Real Estate Acquisitions)	$4,710 - 5,690	-$2		+$2	$4,710 - 5,690
AFFO	$4,240 - 4,300	+$52	+$31	+$7	$4,340 - 4,380
AFFO per Share (Diluted)	$42.69 - 43.29 10 - 12%	+$0.54	+$0.31	+$0.07	$43.71 - 44.11 11 - 12%
Expected Cash Dividends	~$2,039	-$2			~$2,037

For the fourth quarter of 2026, the company expects revenues to range between $2.684 and $2.724 billion, an increase of 11 - 13% over the previous year on an as-reported basis, or 12 - 13% on a normalized and constant currency basis. Adjusted EBITDA is expected to range between $1.328 and $1.368 billion, reflecting an adjusted EBITDA margin of 49 - 50%.

For the full year of 2026, total revenues are expected to range between $10.325 and $10.365 billion, an increase of approximately 12% over the previous year on both an as-reported and a normalized and constant currency basis. Adjusted EBITDA is expected to range between $5.290 and $5.330 billion, reflecting an adjusted EBITDA margin of approximately 51%, an approximate 200 basis points expansion over the previous year. AFFO is expected to range between $4.340 and $4.380 billion. AFFO per share is expected to range between $43.71 and $44.11, an increase of 14 - 15% over the previous year on an as-reported basis, or 11 - 12% on a normalized and constant currency basis. Total capital expenditures are expected to range between $5 and $6 billion.

Q3 2026 Business Highlights

• Delivered record annualized gross bookings of $533 million.
• Added 6,900 net interconnections.
• Introduced Fabric One, an any-to-any connectivity service designed to simplify how enterprises connect distributed cloud, network and AI environments, with AWS and Google Cloud serving as lead integration partners.
• Announced Equinix Inference Exchange, in collaboration with NVIDIA and Together AI, to help enterprises deploy and scale AI inferencing workloads globally through high-performance, interconnected infrastructure.
• Launched Equinix Enhanced Performance Innovation Centers (EPIC), a global network of production-ready liquid cooling environments that enables customers to test, validate and deploy high-density AI infrastructure alongside Equinix experts and leading technology partners.
• Completed the investment in atNorth alongside CPP Investments, strengthening Equinix's position in the fast-growing Nordic market and expanding its footprint across AI-ready, high-density data center infrastructure powered by renewable energy.
• Advanced Equinix's leadership on responsible infrastructure growth in Texas, supporting state standards on grid costs, water stewardship, community impact, and transparency while reinforcing more than $1.6 billion in long-term investment across the state.
• Established a first-of-its-kind partnership in Georgia that protects ratepayers by having Equinix fund all grid infrastructure costs associated with its Hampton data center project through a 20-year commitment.

Q3 2026 Results Conference Call and Replay Information

Equinix will discuss its quarterly results for the period ended September 30, 2026, along with its future outlook, in its quarterly conference call on Wednesday, October 28, 2026, at 5:30 p.m. ET (2:30 p.m. PT). A simultaneous live webcast of the call will be available on the company's Investor Relations website at www.equinix.com/investors. To hear the conference call live, please dial 1-517-308-9482 (domestic and international) and reference the passcode EQIX.

A replay of the call will be available one hour after the call through Thursday, December 31, 2026, by dialing 1-800-814-6745 and referencing the passcode 2026. In addition, the webcast will be available at www.equinix.com/investors (no password required).

Investor Presentation and Supplemental Financial Information

Equinix has made available on its website a presentation designed to accompany the discussion of Equinix's results and future outlook, along with certain supplemental financial information and other data. Interested parties may access this information through the Equinix Investor Relations website at www.equinix.com/investors.

Additional Resources

• Equinix Investor Relations Resources

About Equinix

Equinix, Inc. (Nasdaq: EQIX) shortens the path to boundless connectivity anywhere in the world. Its digital infrastructure, data center footprint and interconnected ecosystems empower innovations that enhance our work, life and planet. Equinix connects economies, countries, organizations and communities, delivering seamless digital experiences and cutting-edge AI—quickly, efficiently and everywhere.

Non-GAAP Financial Measures

Equinix provides all information required in accordance with generally accepted accounting principles ("GAAP"), but it believes that evaluating its ongoing results of operations may be difficult if limited to reviewing only GAAP financial measures. Accordingly, Equinix also uses non-GAAP financial measures to evaluate its operations.

Non-GAAP financial measures are not a substitute for financial information prepared in accordance with GAAP. Non-GAAP financial measures should not be considered in isolation, but should be considered together with the most directly comparable GAAP financial measures. As such, Equinix provides a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Investors should note that the non-GAAP financial measures used by Equinix may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as those of other companies. Investors should therefore exercise caution when comparing non-GAAP financial measures used by Equinix to similarly titled non-GAAP financial measures of other companies.

Equinix's primary non-GAAP financial measures include Adjusted EBITDA and Adjusted Funds from Operations ("AFFO") as described below. Equinix presents these measures to provide investors with additional tools to evaluate its results in a manner that focuses on what management believes to be its core, ongoing business operations. These measures exclude items which Equinix believes are generally not relevant to assessing its long-term performance. Both measures eliminate the impacts of depreciation and amortization, which are derived from historical costs and which Equinix believes are not indicative of current or future expenditures, and other items for which the frequency and amount of charges can vary based on the timing and significance of individual transactions. Equinix believes that presenting these non-GAAP financial measures provides consistency and comparability with past reports and that if it did not provide such non-GAAP financial information, investors would not have all the necessary data to analyze the company effectively.

Adjusted EBITDA is used by management to evaluate the operating strength and performance of its core, ongoing business, without regard to its capital or tax structures. It also aids in assessing the performance of, making operating decisions for, and allocating resources to its operating segments. In addition to the uses described above, Equinix believes this measure provides investors with a better understanding of the operating performance of the business and its ability to perform in subsequent periods.

Equinix defines adjusted EBITDA as net income excluding:

• income tax expense
• interest income
• interest expense
• other income or expense
• gain or loss on debt extinguishment
• depreciation, amortization and accretion expense
• stock-based compensation expense
• restructuring and other exit charges, which primarily include employee severance, facility closure costs, lease or other contract termination costs and advisory fees related to the realignment of our management structure, operations or products and other exit activities
• impairment charges
• transaction costs
• gain or loss on asset sales

AFFO is derived from Funds from Operations ("FFO") calculated in accordance with the standards established by the National Association of Real Estate Investment Trusts. Both FFO and AFFO are non-GAAP measures commonly used in the REIT industry. Although these measures may not be directly comparable to similar measures used by other companies, Equinix believes that the presentation of these measures provides investors with an additional tool for comparing its performance with the performance of other companies in the REIT industry. Additionally, AFFO is a performance measure used in certain of the company's employee incentive programs, and Equinix believes it is a useful measure in assessing its dividend-paying capacity, as it isolates the cash impact of certain income and expense items and considers the impact of recurring capital expenditures.

Equinix defines FFO as net income attributable to common stockholders excluding:

• gain or loss from the disposition of real estate assets
• depreciation and amortization expense on real estate assets
• adjustments related to unconsolidated joint ventures and non-controlling interests

Equinix defines AFFO as FFO adjusted for:

• depreciation and amortization expense on non-real estate assets
• accretion expense
• stock-based compensation expense
• stock-based charitable contributions
• restructuring and other exit charges, as described above
• impairment charges
• transaction costs
• impacts of straight-lining installation revenue
• impacts of straight-lining rent expense
• impacts of straight-lining contract costs
• amortization of deferred financing costs and debt discounts and premiums
• gain or loss from the disposition of non-real estate assets
• gain or loss on debt extinguishment
• an income tax expense adjustment, which represents the non-cash tax impact due to changes in valuation allowances, uncertain tax positions and deferred taxes
• recurring capital expenditures, which represent expenditures to extend the useful life of data centers or other assets that are required to support current revenues
• net income or loss from discontinued operations, net of tax
• adjustments from FFO to AFFO related to unconsolidated joint ventures and non-controlling interests

Equinix provides normalized and constant currency growth rates for revenues, adjusted EBITDA, AFFO and AFFO per share. These growth rates assume foreign currency rates remain consistent across comparative periods. Revenue growth rates exclude the impact of net power pass-through, acquisitions, divestitures and the Equinix Metal^® wind-down. Adjusted EBITDA growth rates exclude the impact of acquisitions, divestitures and integration costs. AFFO growth rates exclude the impact of acquisitions and related financing costs, divestitures, integration costs and balance sheet remeasurements. AFFO per share growth rates exclude the impact of integration costs and balance sheet remeasurements.

Equinix presents cash cost of revenues and cash operating expenses (also known as cash selling, general and administrative expenses or cash SG&A). These measures exclude depreciation, amortization, accretion and stock-based compensation, which are not good indicators of Equinix's current or future operating performance, as described above.

Equinix also presents free cash flow and adjusted free cash flow. Free cash flow is defined as net cash provided by (used in) operating activities plus net cash provided by (used in) investing activities excluding the net purchases of and distributions from equity investments. Adjusted free cash flow is defined as free cash flow excluding any real estate and business acquisitions, net of cash and restricted cash acquired. These measures are presented in order for lenders, investors and the industry analysts who review and report on Equinix to better evaluate Equinix's cash spending levels relative to its industry sector and competitors.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the current inflationary environment; foreign currency exchange rate fluctuations; stock price fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of building and operating IBX^® and xScale^® data centers, including those related to sourcing suitable power and land, and any supply chain constraints or increased costs of supplies; the challenges of developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT; risks related to regulatory inquiries or litigation; and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release. 

EQUINIX, INC.
Condensed Consolidated Statements of Operations
(in millions, except share and per share data)
(unaudited)
	Three Months Ended						Nine Months Ended
	September 30, 2026		June 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
Recurring revenues	$    2,442		$    2,377		$    2,215		$    7,150		$    6,445
Non-recurring revenues	129		248		101		490		352
Revenues	2,571		2,625		2,316		7,640		6,797
Cost of revenues	1,257		1,230		1,142		3,673		3,310
Gross profit	1,314		1,395		1,174		3,967		3,487
Operating expenses:
Sales and marketing	233		239		219		713		669
General and administrative	449		462		470		1,355		1,359
Restructuring and other exit charges	6		6		5		18		17
Transaction costs	20		3		3		31		12
Impairment charges	6		17		4		25		5
(Gain) loss on asset sales	—		3		(1)		(17)		(1)
Total operating expenses	714		730		700		2,125		2,061
Income from operations	600		665		474		1,842		1,426
Interest and other income (expense):
Interest income	46		36		53		123		152
Interest expense	(163)		(151)		(128)		(462)		(385)
Other income (expense)	54		(28)		—		27		2
Gain (loss) on debt extinguishment	—		1		—		1		1
Total interest and other, net	(63)		(142)		(75)		(311)		(230)
Income before income taxes	537		523		399		1,531		1,196
Income tax expense	(48)		(46)		(25)		(150)		(112)
Net income	489		477		374		1,381		1,084
Net (income) loss attributable to non-controlling interests	—		2		—		2		1
Net income attributable to common stockholders	$      489		$      479		$      374		$    1,383		$    1,085
Earnings (loss) per share ("EPS") attributable to common stockholders:
Basic EPS	$      4.95		$      4.86		$      3.82		$    14.03		$    11.10
Diluted EPS	$      4.93		$      4.83		$      3.81		$    13.96		$    11.07
Weighted-average shares for basic EPS (in thousands)	98,787		98,641		97,982		98,607		97,777
Weighted-average shares for diluted EPS (in thousands)	99,277		99,136		98,174		99,047		98,037

 

EQUINIX, INC.
Condensed Consolidated Balance Sheets
(in millions, except headcount)
(unaudited)
	September 30, 2026		December 31, 2025
Assets
Cash and cash equivalents	$    2,362		$    1,727
Short-term investments	1,235		1,500
Accounts receivable, net	1,203		1,001
Other current assets	957		897
Total current assets	5,757		5,125
Property, plant and equipment, net	26,282		23,584
Operating lease right-of-use assets	1,317		1,392
Goodwill	5,874		5,984
Intangible assets, net	1,146		1,316
Other assets	4,069		2,740
Total assets	$   44,445		$   40,141
Liabilities, Redeemable Non-Controlling Interest and Stockholders' Equity
Accounts payable and accrued expenses	$    1,425		$    1,350
Accrued property, plant and equipment	676		564
Current portion of operating lease liabilities	155		155
Current portion of finance lease liabilities	182		168
Current portion of mortgage and loans payable	6		17
Current portion of senior notes	1,665		1,299
Other current liabilities	343		340
Total current liabilities	4,452		3,893
Operating lease liabilities, less current portion	1,231		1,304
Finance lease liabilities, less current portion	2,196		2,187
Mortgage and loans payable, less current portion	13		686
Senior notes, less current portion	20,963		16,910
Other liabilities	1,037		983
Total liabilities	29,892		25,963
Redeemable non-controlling interest	25		25
Common stockholders' equity:
Common stock	—		—
Additional paid-in capital	22,209		21,642
Treasury stock	(23)		(24)
Accumulated dividends	(13,748)		(12,202)
Accumulated other comprehensive loss	(1,385)		(1,359)
Retained earnings	7,484		6,099
Total common stockholders' equity	14,537		14,156
Non-controlling interests	(9)		(3)
Total stockholders' equity	14,528		14,153
Total liabilities, redeemable non-controlling interest and stockholders' equity	$   44,445		$   40,141
Ending headcount by geographic region is as follows:
Americas headcount	6,021		5,917
EMEA headcount	4,768		4,706
Asia-Pacific headcount	3,253		3,093
Total headcount	14,042		13,716

 

EQUINIX, INC.
Summary of Debt Principal Outstanding
(in millions)
(unaudited)
	September 30, 2026		December 31, 2025
Finance lease liabilities	$    2,378		$    2,355
Term loans	5		673
Mortgage payable and other loans payable	14		30
Total mortgage and loans payable principal	19		703
Senior notes	22,628		18,209
Plus: debt issuance costs and debt discounts	192		150
Total senior notes principal	22,820		18,359
Total debt principal outstanding	$   25,217		$   21,417

 

EQUINIX, INC.
Condensed Consolidated Statements of Cash Flows
(in millions)
(unaudited)
			Nine Months Ended
			September 30, 2026		September 30, 2025
Cash flows from operating activities:
	Net income		$    1,381		$    1,084
	Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation, amortization and accretion		1,649		1,515
	Stock-based compensation		414		370
	Impairment charges		25		5
	(Gain) loss on asset sales		(17)		(1)
	Other operating activities		30		21
	Changes in operating assets and liabilities:
	Accounts receivable		(210)		(180)
	Income taxes, net		(44)		(91)
	Operating lease right-of-use assets		119		122
	Operating lease liabilities		(119)		(113)
	Accounts payable and accrued expenses		88		(49)
	Other assets and liabilities		(289)		84
Net cash provided by operating activities			3,027		2,767
Cash flows from investing activities:
	Purchases of equity investments		(1,153)		(54)
	Distributions from equity investments		105		17
	Purchases of short-term investments		(972)		(1,092)
	Maturities and sales of short-term investments		1,254		770
	Business acquisitions, net of cash acquired		—		(182)
	Real estate acquisitions		(234)		(391)
	Purchases of other property, plant and equipment		(4,392)		(2,875)
	Proceeds from sale of assets, net of cash transferred		415		—
	Settlement of foreign currency hedges		101		95
	Investment in loan receivable		—		(62)
Net cash used in investing activities			(4,876)		(3,774)
Cash flows from financing activities:
	Proceeds from employee equity programs		90		95
	Payment of dividends		(1,547)		(1,395)
	Proceeds from public offering of common stock, net of issuance costs		—		99
	Proceeds from senior notes, net of debt discounts		5,399		2,566
	Repayment of finance lease liabilities		(129)		(111)
	Contribution from non-controlling interest		—		3
	Repayment of senior notes		(700)		(1,200)
	Repayment of other debt		(686)		(1)
	Other financing activities		6		(9)
Net cash provided by financing activities			2,433		47
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash			(10)		43
Net increase (decrease) in cash, cash equivalents and restricted cash			574		(917)
Cash, cash equivalents and restricted cash at beginning of period			1,824		3,082
Cash, cash equivalents and restricted cash at end of period			$    2,398		$    2,165
Free cash flow (1)			$     (801)		$     (970)
Adjusted free cash flow (2)			$     (567)		$     (397)
(1)	We define free cash flow as net cash provided by operating activities plus net cash used in investing activities (excluding the net purchases of and distributions from equity investments) as presented below:
	Net cash provided by operating activities as presented above		$    3,027		$    2,767
	Net cash used in investing activities as presented above		(4,876)		(3,774)
	Less purchases of equity investments, net of distributions		1,048		37
	Free cash flow		$     (801)		$     (970)
(2)	We define adjusted free cash flow as free cash flow as defined above, excluding any real estate and business acquisitions, net of cash and restricted cash acquired as presented below:
	Free cash flow (as defined above)		$     (801)		$     (970)
	Less business acquisitions, net of cash and restricted cash acquired		—		182
	Less real estate acquisitions		234		391
	Adjusted free cash flow		$     (567)		$     (397)

 

EQUINIX, INC.
Non-GAAP Measures and Other Supplemental Data
($ in millions, except per share data)
(unaudited)
		Three Months Ended						Nine Months Ended
		September 30, 2026		June 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
	Recurring revenues	$    2,442		$    2,377		$    2,215		$     7,150		$     6,445
	Non-recurring revenues	129		248		101		490		352
	Revenues (1)	2,571		2,625		2,316		7,640		6,797
	Cash cost of revenues (2)	830		790		752		2,385		2,186
	Cash gross profit (3)	1,741		1,835		1,564		5,255		4,611
	Cash operating expenses (4):
	Cash sales and marketing expenses	157		162		144		481		450
	Cash general and administrative expenses	263		277		272		812		817
	Total cash operating expenses (4)	420		439		416		1,293		1,267
	Adjusted EBITDA (5)	$   1,321		$   1,396		$   1,148		$     3,962		$     3,344
	Cash gross margins (6)	68 %		70 %		68 %		69 %		68 %
	Adjusted EBITDA margins (7)	51 %		53 %		50 %		52 %		49 %
	FFO (8)	$      858		$      854		$      707		$     2,470		$     2,043
	AFFO (9)(10)	$   1,156		$   1,168		$      965		$     3,389		$     2,884
	Basic FFO per share (11)	$     8.69		$     8.66		$     7.22		$     25.05		$     20.89
	Diluted FFO per share (11)	$     8.64		$     8.61		$     7.20		$     24.94		$     20.84
	Basic AFFO per share (11)	$   11.70		$   11.84		$     9.85		$     34.37		$     29.50
	Diluted AFFO per share (11)	$   11.64		$   11.78		$     9.83		$     34.22		$     29.42
(1)	The geographic split of our revenues on a services basis is presented below:
	Americas Revenues:
	Colocation	$      770		$      747		$      682		$     2,248		$     1,972
	Interconnection	262		256		239		769		699
	Managed infrastructure	52		56		61		165		186
	Other	9		8		5		24		12
	Recurring revenues	1,093		1,067		987		3,206		2,869
	Non-recurring revenues	55		184		48		284		171
	Revenues	$    1,148		$    1,251		$    1,035		$     3,490		$     3,040
	EMEA Revenues:
	Colocation	$      653		$      633		$      588		$     1,899		$     1,727
	Interconnection	108		105		100		319		283
	Managed infrastructure	40		40		39		121		112
	Other	30		28		29		87		82
	Recurring revenues	831		806		756		2,426		2,204
	Non-recurring revenues	47		39		28		124		90
	Revenues	$      878		$      845		$      784		$     2,550		$     2,294
	Asia-Pacific Revenues:
	Colocation	$      403		$      392		$      367		$     1,181		$     1,068
	Interconnection	95		92		83		276		240
	Managed infrastructure	16		16		18		49		52
	Other	4		4		4		12		12
	Recurring revenues	518		504		472		1,518		1,372
	Non-recurring revenues	27		25		25		82		91
	Revenues	$      545		$      529		$      497		$     1,600		$     1,463
	Worldwide Revenues:
	Colocation	$    1,826		$    1,772		$    1,637		$     5,328		$     4,767
	Interconnection	465		453		422		1,364		1,222
	Managed infrastructure	108		112		118		335		350
	Other	43		40		38		123		106
	Recurring revenues	2,442		2,377		2,215		7,150		6,445
	Non-recurring revenues	129		248		101		490		352
	Revenues	$    2,571		$    2,625		$    2,316		$     7,640		$     6,797
(2)	We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-based compensation as presented below:
	Cost of revenues	$    1,257		$    1,230		$    1,142		$     3,673		$     3,310
	Depreciation, amortization and accretion expense	(409)		(421)		(375)		(1,235)		(1,079)
	Stock-based compensation expense	(18)		(19)		(15)		(53)		(45)
	Cash cost of revenues	$      830		$      790		$      752		$     2,385		$     2,186
(3)	We define cash gross profit as revenues less cash cost of revenues (as defined above).
(4)	We define cash sales and marketing expense as sales and marketing expense less depreciation, amortization and stock-based compensation as presented below. We define cash general and administrative expense as general and administrative expense less depreciation, amortization and stock-based compensation as presented below. We define cash operating expense as selling, general, and administrative expense less depreciation, amortization, and stock-based compensation. We also refer to cash operating expense as cash selling, general and administrative expense or "cash SG&A".
	Sales and marketing expense	$      233		$      239		$      219		$       713		$       669
	Depreciation and amortization expense	(51)		(51)		(50)		(154)		(147)
	Stock-based compensation expense	(25)		(26)		(25)		(78)		(72)
	Cash sales and marketing expense	157		162		144		481		450
	General and administrative expense	449		462		470		1,355		1,359
	Depreciation and amortization expense	(88)		(85)		(108)		(260)		(289)
	Stock-based compensation expense	(98)		(100)		(90)		(283)		(253)
	Cash general and administrative expenses	263		277		272		812		817
	Cash operating expense	$      420		$      439		$      416		$     1,293		$     1,267
(5)	We define adjusted EBITDA as net income excluding income tax expense or benefit, interest income, interest expense, other income or expense, gain or loss on debt extinguishment, depreciation, amortization, accretion, stock-based compensation expense, restructuring and other exit charges, impairment charges, transaction costs, and gain or loss on asset sales as presented below:
	Net income	$      489		$      477		$      374		$     1,381		$     1,084
	Income tax expense (benefit)	48		46		25		150		112
	Interest income	(46)		(36)		(53)		(123)		(152)
	Interest expense	163		151		128		462		385
	Other (income) expense	(54)		28		—		(27)		(2)
	(Gain) loss on debt extinguishment	—		(1)		—		(1)		(1)
	Depreciation, amortization and accretion expense	548		557		533		1,649		1,515
	Stock-based compensation expense	141		145		130		414		370
	Restructuring and other exit charges	6		6		5		18		17
	Impairment charges	6		17		4		25		5
	Transaction costs	20		3		3		31		12
	(Gain) loss on asset sales	—		3		(1)		(17)		(1)
	Adjusted EBITDA	$    1,321		$    1,396		$    1,148		$     3,962		$     3,344
	Americas	560		641		489		1,717		1,398
	EMEA	456		456		384		1,336		1,148
	Asia-Pacific	305		299		275		909		798
	Adjusted EBITDA	$    1,321		$    1,396		$    1,148		$     3,962		$     3,344
(6)	We define cash gross margins as cash gross profit divided by revenues.
(7)	We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.
(8)	FFO is defined as net income or loss attributable to common stockholders, excluding gain or loss from the disposition of real estate assets, depreciation and amortization expense on real estate assets and adjustments for unconsolidated joint ventures' and non-controlling interests' share of these items.
	Net income	$      489		$      477		$      374		$     1,381		$     1,084
	Net (income) loss attributable to non-controlling interests	—		2		—		2		1
	Net income (loss) attributable to common stockholders	489		479		374		1,383		1,085
	Adjustments:
	Real estate depreciation	358		361		324		1,070		933
	(Gain) loss on disposition of real estate assets	—		3		(1)		(17)		—
	Adjustments for FFO from unconsolidated joint ventures	11		11		10		34		25
	FFO attributable to common stockholders	$      858		$      854		$      707		$     2,470		$     2,043
(9)	AFFO is defined as FFO adjusted for depreciation and amortization expense on non-real estate assets, accretion, stock-based compensation, stock-based charitable contributions, restructuring and other exit charges, impairment charges, transaction costs, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, gain or loss from the disposition of non-real estate assets, gain or loss on debt extinguishment, an income tax expense adjustment, recurring capital expenditures, net income or loss from discontinued operations, net of tax, and adjustments from FFO to AFFO related to unconsolidated joint ventures and non-controlling interests.
	FFO attributable to common stockholders	$      858		$      854		$      707		$     2,470		$     2,043
	Adjustments:
	Installation revenue adjustment	8		8		6		24		16
	Straight-line rent expense adjustment	(3)		(4)		1		(3)		9
	Contract cost adjustment	(11)		(11)		(8)		(37)		(25)
	Amortization of deferred financing costs and debt discounts	8		7		6		22		17
	Stock-based compensation expense	141		145		130		414		370
	Stock-based charitable contributions	—		3		—		3		3
	Non-real estate depreciation expense	134		139		155		411		426
	(Gain) loss on disposition of non-real estate assets	—		—		(3)		—		(1)
	Amortization expense	52		51		51		155		149
	Accretion expense adjustment	4		6		3		13		7
	Recurring capital expenditures	(68)		(49)		(64)		(149)		(145)
	(Gain) loss on debt extinguishment	—		(1)		—		(1)		(1)
	Restructuring and other exit charges	6		6		5		18		17
	Transaction costs	20		3		3		31		12
	Impairment charges	6		17		4		25		5
	Income tax expense adjustment	1		(8)		(29)		(7)		(19)
	Adjustments for AFFO from unconsolidated joint ventures	—		2		(2)		—		1
	AFFO attributable to common stockholders	$    1,156		$    1,168		$      965		$     3,389		$     2,884
(10)	Following is how we reconcile from adjusted EBITDA to AFFO:
	Adjusted EBITDA	$    1,321		$    1,396		$    1,148		$     3,962		$     3,344
	Adjustments:
	Interest expense, net of interest income	(117)		(115)		(75)		(339)		(233)
	Amortization of deferred financing costs and debt discounts	8		7		6		22		17
	Income tax expense	(48)		(46)		(25)		(150)		(112)
	Income tax expense adjustment	1		(8)		(29)		(7)		(19)
	Straight-line rent expense adjustment	(3)		(4)		1		(3)		9
	Stock-based charitable contributions	—		3		—		3		3
	Contract cost adjustment	(11)		(11)		(8)		(37)		(25)
	Installation revenue adjustment	8		8		6		24		16
	Recurring capital expenditures	(68)		(49)		(64)		(149)		(145)
	Other income (expense)	54		(28)		—		27		2
	Adjustments for (gain) loss on asset dispositions	—		—		(3)		—		—
	Adjustments for unconsolidated JVs and non-controlling interests	11		15		8		36		27
	AFFO attributable to common stockholders	$    1,156		$    1,168		$      965		$     3,389		$     2,884
(11)	The shares used in the computation of basic and diluted FFO and AFFO per share attributable to common stockholders is presented below:
	Shares used in computing basic net income per share, FFO per share and AFFO per share (in thousands)	98,787		98,641		97,982		98,607		97,777
	Effect of dilutive securities:
	Employee equity awards (in thousands)	490		495		192		440		260
	Shares used in computing diluted net income per share, FFO per share and AFFO per share (in thousands)	99,277		99,136		98,174		99,047		98,037
	Basic FFO per share	$     8.69		$     8.66		$     7.22		$     25.05		$     20.89
	Diluted FFO per share	$     8.64		$     8.61		$     7.20		$     24.94		$     20.84
	Basic AFFO per share	$    11.70		$    11.84		$     9.85		$     34.37		$     29.50
	Diluted AFFO per share	$    11.64		$    11.78		$     9.83		$     34.22		$     29.42

 

 

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SOURCE Equinix, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Equinix's third-quarter 2026 revenue and earnings?

Equinix reported $2.571 billion in revenue and $4.93 in diluted earnings per share for the quarter ended September 30, 2026. Revenue increased 11% year over year as reported, while diluted earnings per share increased 29%. Net income attributable to common stockholders was $489 million.

What is Equinix's revised full-year 2026 guidance?

Equinix expects $10.325–$10.365 billion in revenue, $5.290–$5.330 billion in adjusted EBITDA and $43.71–$44.11 in diluted AFFO per share for 2026. AFFO means adjusted funds from operations, a non-GAAP performance measure. Expected total capital expenditures are $5–$6 billion.