Equinix Q3 revenue rises 11% to $2.57B; outlook raised
Equinix raised full-year 2026 revenue guidance to $10.325–$10.365 billion and Adjusted EBITDA guidance to $5.290–$5.330 billion.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Equinix, Inc. (EQIX) reported third-quarter 2026 revenue of $2.571 billion, up 11% year over year as reported. Operating income was $600 million (+27%); net income attributable to common stockholders was $489 million (+31%), partly reflecting a non-recurring fee earned in connection with its atNorth joint venture investment. Diluted EPS was $4.93 (+29%). Non-GAAP Adjusted EBITDA was $1.321 billion (+15% as reported), and AFFO was $1.156 billion (+20% as reported).
Equinix raised full-year 2026 guidance for the third consecutive quarter: revenue of $10.325–$10.365 billion, Adjusted EBITDA of $5.290–$5.330 billion, AFFO of $4.340–$4.380 billion, and diluted AFFO per share of $43.71–$44.11. Expected revenue growth is approximately 12%; the Adjusted EBITDA margin is approximately 51%, with approximately 200 basis points of expansion over the previous year.
Annualized gross bookings were $533 million, up 35% year over year; monthly recurring revenue grew by double digits for a fourth consecutive quarter. Interconnection revenue grew 10% and Fabric revenue 24% year over year. Equinix added 6,900 net interconnections and plans nearly 40% more cabinets for 2026 delivery than initially anticipated.
5 points · 0 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointRevenue reached $2.571 billion, up 11% year over year as reported.
- Moderate pointOperating income increased 27% year over year to $600 million.
- Moderate pointAdjusted EBITDA increased 15% year over year to $1.321 billion as reported.
- Moderate pointAFFO increased 20% year over year to $1.156 billion as reported.
- Moderate pointAnnualized gross bookings reached $533 million, up 35% year over year.
Negative
- None.
Filing Explained
At September 30, 2026, Equinix reported $25,217 million of debt principal and negative adjusted free cash flow for the nine months ended September 30, 2026.
The 8-K reports Q3 results and revised 2026 guidance, and its balance sheet shows total debt principal of
For the nine months ended
Equinix defines adjusted free cash flow as free cash flow excluding real estate and business acquisitions; its free cash flow measure excludes net purchases of equity investments from investing cash flow.
Across those nine months, investing activities used
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $2.571 billion
Operating income: $600 million
Net income attributable to common stockholders: $489 million
+5 more
8 metrics
Revenue
$2.571 billion
Third quarter 2026; up 11% year over year as reported.
Operating income
$600 million
Third quarter 2026; up 27% year over year.
Net income attributable to common stockholders
$489 million
Third quarter 2026; up 31% year over year.
Diluted EPS attributable to common stockholders
$4.93 per share
Third quarter 2026; up 29% year over year.
Adjusted EBITDA
$1.321 billion
Third quarter 2026; up 15% year over year as reported.
AFFO
$1.156 billion
Third quarter 2026; up 20% year over year as reported.
Annualized gross bookings
$533 million
Third quarter 2026; up 35% year over year.
Full-year 2026 revenue guidance
$10.325–$10.365 billion
Revised guidance; expected revenue growth of approximately 12%.
Key Terms
Adjusted EBITDA, AFFO, normalized and constant currency, annualized gross bookings, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA was $1.321 billion"
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
"Adjusted Funds from Operations (“AFFO”)"
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.
normalized and constant currency financial
"on a normalized and constant currency basis"
A reporting view that shows a company’s financial results after removing one-time or unusual items (normalized) and after applying fixed exchange rates instead of current rates (constant currency). It matters to investors because it helps compare operating performance across periods by stripping out temporary distortions and foreign-exchange swings, like looking at a recipe using the same measuring cup and ingredients each time to judge how the dish itself has changed.
annualized gross bookings financial
"record annualized gross bookings of $533 million"
Annualized gross bookings is the total value of all transactions or orders a business has accepted, scaled up to show what that amount would look like over a full year. It matters to investors because it gives a quick, standardized view of how much customer activity and demand a company is generating (think converting a month’s sales into a yearly figure), but it is not the same as reported revenue or profit because it ignores cancellations, refunds and fees.
interconnection revenue technical
"Achieved 10% year over year interconnection revenue growth"
Earnings Snapshot
Revenue: $2.571 billion · Guidance included
Third quarter 2026 ended September 30, 2026
Revenue
$2.571 billion
Up 11% year over year as reported; up 12% on a normalized and constant currency basis
Operating income
$600 million
Up 27% year over year
Net income attributable to common stockholders
$489 million
Up 31% year over year
Diluted EPS attributable to common stockholders
$4.93 per share
Up 29% year over year
Adjusted EBITDA
$1.321 billion
Up 15% year over year as reported; up 14% on a normalized and constant currency basis
AFFO
$1.156 billion
Up 20% year over year as reported; up 14% on a normalized and constant currency basis excluding the benefit of the atNorth joint venture fee
Diluted AFFO per share
$11.64 per share
Up 18% year over year as reported; up 12% on a normalized and constant currency basis excluding the benefit of the atNorth joint venture fee
Guidance
Full-year 2026 revenue of $10.325–$10.365 billion; Adjusted EBITDA of $5.290–$5.330 billion; AFFO of $4.340–$4.380 billion; diluted AFFO per share of $43.71–$44.11.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue and net income did EQIX report in Q3 2026?
EQIX reported revenue of $2.571 billion and net income attributable to common stockholders of $489 million for the quarter ended September 30, 2026. Revenue increased 11% and net income increased 31% year over year.
What is EQIX's 2026 revenue and AFFO guidance?
Full-year 2026 revenue guidance is $10.325–$10.365 billion, and AFFO guidance is $4.340–$4.380 billion. Equinix also guided to Adjusted EBITDA of $5.290–$5.330 billion and diluted AFFO per share of $43.71–$44.11.
How much does EQIX expect to spend on capital expenditures in 2026?
Total capital expenditures are expected to range between $5 billion and $6 billion. Recurring capital expenditures are expected to be $290 million to $310 million. Non-recurring capital expenditures, excluding xScale and real estate acquisitions, are expected to be $4.710 billion to $5.690 billion.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 28, 2026
(Exact Name of Registrant as Specified in Charter)
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of Principal Executive Offices, and Zip Code)
(650 ) 598-6000
Registrant’s Telephone Number, Including Area Code
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
| Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
| Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On October 28, 2026, Equinix, Inc. (“Equinix”) issued a press release and will hold a conference call regarding its financial results for the third quarter ended September 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this report.
This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Equinix is making reference to certain non-GAAP financial information in both the press release and the conference call. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release.
| Item 9.01 | Financial Statements and Exhibits. | ||||
(d) Exhibits
| Exhibit No. | Description | ||||
| 99.1 | Press Release of Equinix, Inc. dated October 28, 2026. | ||||
| 104 | Cover Page Interactive Data File - the cover page iXBRL tags are embedded within the Inline XBRL document | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| EQUINIX, INC. | |||||
DATE: October 28, 2026 | By: /s/ Olivier Leonetti Olivier Leonetti Chief Financial Officer | ||||
FOR IMMEDIATE RELEASE
Equinix Reports Third-Quarter Results and Raises 2026 Guidance
•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. - October 28, 2026 - 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.”
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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
◦$11.64 per share, an 18% increase over the same quarter of the previous year on an as-reported basis, or a 12% increase on a normalized and constant currency basis excluding the benefit of the atNorth joint venture fee
Equinix uses certain non-GAAP financial measures, which are described further below and reconciled to the most comparable GAAP financial measures after the presentation of our GAAP financial statements.
Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, stock-based compensation and other components of net income or loss from operations, and as a result, is not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data without unreasonable effort. The impact of such adjustments could be significant. Equinix intends to calculate the various non-GAAP financial measures in future periods consistent with how they were calculated for the periods presented within this press release.
All per-share results are presented on a fully diluted basis.
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2026 Guidance Summary
| ($ 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.
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•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
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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
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•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.
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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 Media Relations | Equinix Investor Relations | ||||
| press@equinix.com | invest@equinix.com | ||||
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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 | ||||||||||||||||||||||||
8
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 | |||||||||
9
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 | |||||||
10
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 | |||||||||||||
11
| Nine Months Ended | |||||||||||||||||
| September 30, 2026 | September 30, 2025 | ||||||||||||||||
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) | |||||||||||||
12
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 | ||||||||||||||||||||||
13
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | ||||||||||||||||||||||||||||
| (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 | ||||||||||||||||||||||
14
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | ||||||||||||||||||||||||||||
| 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. | |||||||||||||||||||||||||||||||
15
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | ||||||||||||||||||||||||||||
| (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 | |||||||||||||||||||||||||||
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| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | ||||||||||||||||||||||||||||
| 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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