Equinix (EQIX) Earnings Preview — Q2 2026
Key Preview Table: What to Watch for Q2 2026
| Factor | Q2 2026 Consensus | Q2 2025 Actual | YoY Change | Q1 2026 Actual | Sequential Trend | Guidance/Commentary |
|---|---|---|---|---|---|---|
| Revenue ($M) | 2,581 | 2,257 | +14% | 2,510 | +3% | Guidance: $2,571–2,611M |
| Gross Profit Margin (%) | 70.5 | 67.5 | +300 bps | 70.0 | +0.5 pts | |
| Adjusted EBITDA ($M) | 1,355 | 1,102 | +23% | 1,295 | +5% | Guidance: $1,349–1,389M |
| Net Income ($M) | 476 | 340 | +40% | 428 | +11% | |
| EPS (GAAP) | 4.68 | 3.47 | +35% | 4.23 | +11% | |
| AFFO ($M) | 1,065 | Guidance: $4,198–4,278M FY26 | ||||
| AFFO per Share ($) | 10.79 | Guidance: $42.31–43.11 FY26 | ||||
| CapEx ($M) | 1,300 | Guidance: ~$4,100M FY26 | ||||
| MRR Growth (YoY, %) | +12% | Guidance: 10–11% YoY Q2 | ||||
| Adjusted EBITDA Margin (%) | 52.5 | 48.0 | +4.5 pts | 51.0 | +1.5 pts | Guidance: ~52–53% Q2 |
Notes:
- All consensus figures are rounded to the nearest million and sourced from company consensus data.
- Guidance ranges are from the latest Q1 2026 press release and earnings call.
- Q2 2025 actuals are as reported; Q2 2026 consensus is forward-looking.
Summary and Conclusions
Equinix enters Q2 2026 earnings with strong momentum, coming off a record Q1 and a robust FY25. The company is guiding to double-digit revenue and AFFO growth for FY26, with margin expansion and continued strength in AI, cloud, and networking demand.
- Q2 2026 consensus expects revenue of $2,581M (+14% YoY), adjusted EBITDA of $1,355M (+23% YoY), and EPS of $4.68 (+35% YoY).
- Management raised full-year 2026 guidance after Q1, now targeting revenue of $10,144–10,244M (+10–11% YoY), adjusted EBITDA of $5,165–5,245M (~51% margin), and AFFO per share of $42.31–43.11 (+10–12% YoY).
- Q1 2026 saw double-digit recurring revenue growth (+12% YoY), record gross bookings and presales, and margin improvement.
- AI-related demand remains a key driver: ~60% of largest deals in Q1 were AI-related, with 8 of the top 10 AI model providers and 4 of the top 5 neoclouds expanding with Equinix.
- CapEx intensity remains high, with ~$4.1B expected for FY26 as Equinix continues to expand capacity and invest in new metros and higher-density builds.
- Churn was at a record low (1.7%) in Q1, but management expects it to normalize to the 2–2.5% range for the rest of the year.
- No material operational impact from Middle East geopolitical events; power procurement and land pipeline remain robust.
The most important factors to watch in Q2 2026:
- Sustained double-digit revenue and MRR growth, especially in AI and interconnection-related services
- Margin expansion and cost discipline, with adjusted EBITDA margin guided to 52–53% for Q2
- Conversion of record backlog and presales into revenue and AFFO
- Continued strong pricing and density trends, especially as new high-density and liquid cooling deployments ramp
- Execution on large xScale deals (notably Hampton and Minooka) and their impact on nonrecurring revenue
- CapEx deployment pace and returns, with management reiterating mid-20s% cash-on-cash targets
Recent Results and Year-over-Year Comparables
Quarterly Financials — Actuals
| Quarter | Revenue ($M) | Gross Margin (%) | Adj. EBITDA ($M) | Net Income ($M) | EPS (GAAP) | AFFO ($M) | AFFO/Share ($) |
|---|---|---|---|---|---|---|---|
| Q1 2026 | 2,444 | 70.0 | 1,245 | 415 | 4.20 | 1,065 | 10.79 |
| Q4 2025 | 2,420 | 67.6 | 1,187 | 265 | 2.69 | 877 | 8.91 |
| Q3 2025 | 2,316 | 68.2 | 1,148 | 374 | 3.81 | 965 | 9.83 |
| Q2 2025 | 2,257 | 67.5 | 1,129 | 368 | 3.75 | 972 | 9.91 |
| Q1 2025 | 2,225 | 67.5 | 1,067 | 343 | 3.50 | 947 | 9.67 |
YoY Q2 2026 vs. Q2 2025:
- Revenue expected +14% (consensus)
- Adjusted EBITDA expected +23%
- EPS expected +35%
- AFFO per share expected +10–12% for FY26
Annual Financials — Actuals
| Fiscal Year | Revenue ($M) | Gross Margin (%) | Adj. EBITDA ($M) | Net Income ($M) | EPS (GAAP) | AFFO ($M) | AFFO/Share ($) |
|---|---|---|---|---|---|---|---|
| 2025 | 9,217 | 67.7 | 4,530 | 1,350 | 13.76 | 3,761 | 38.33 |
| 2024 | 8,748 | 66.3 | 4,098 | 815 | 8.50 | 3,356 | 35.02 |
Guidance Update — FY26 and Q2 2026
FY26 Guidance (as of Q1 2026)
| Metric | Guidance Range | YoY Growth (Midpoint) | Notes |
|---|---|---|---|
| Revenue ($M) | 10,144 – 10,244 | +10–11% | Raised after Q1 |
| Adjusted EBITDA ($M) | 5,165 – 5,245 | +13% | Margin ~51% |
| AFFO ($M) | 4,198 – 4,278 | +12–14% | |
| AFFO per Share ($) | 42.31 – 43.11 | +10–12% | |
| CapEx ($M) | ~4,100 | Top end of prior range | |
| Recurring CapEx ($M) | 280 – 300 | ~3% of revenue | |
| Dividend ($M) | ~2,037 | +10% |
Q2 2026 Guidance
| Metric | Guidance Range | QoQ Growth (Midpoint) | Notes |
|---|---|---|---|
| Revenue ($M) | 2,571 – 2,611 | +6% | Includes Hampton xScale lease |
| Adjusted EBITDA ($M) | 1,349 – 1,389 | +8% | Margin 52–53% |
| Recurring CapEx ($M) | 46 – 66 | 2–3% of revenue |
Management Commentary and Intra-Quarter Color
- AI and Interconnection Demand: Management continues to highlight broad-based and durable demand, with AI inference and agentic workloads moving from pilot to production. "Inference has grown from experimental workloads to an engine of real-time business decision-making."
- Bookings and Backlog: Q1 2026 was the largest quarter of total sales activity in company history, with $378M annualized gross bookings and $140M in presales. Backlog is at a record.
- Pricing and Density: Pricing remains firm, with MRR per cabinet up 7% YoY in Q1. Density is increasing rapidly: "In Q1, the increase in density went up by 36%... average kilowatt per rack today at Equinix is 5 kW."
- Churn: Q1 churn was 1.7%, below the guided range, but management expects it to normalize to 2–2.5% for the remainder of the year.
- CapEx and Returns: CapEx is running at the top end of the range, with management reiterating mid-20s% cash-on-cash return targets even as density increases.
- xScale Pipeline: The Hampton xScale lease is expected to close in Q2, with expanded economics. Minooka and other large xScale projects are in the pipeline but not yet included in near-term guidance.
- Power and Land: Management reports no delays in power procurement or land acquisition, with 3 GW of powered land under control and strong utility relationships.
- Competitive Position: Equinix continues to emphasize its differentiated global, neutral, and highly interconnected platform, with more than 10,500 customers and over 500,000 interconnections.
