Equinix — Q3 2026 Earnings Summary

Financial Performance:

• Reported Q3 2026 revenue of $2.571 billion, an 11% increase year-over-year on an as-reported basis and 12% on a normalized and constant currency basis.
• Operating income reached $600 million, a 27% year-over-year increase, driven by strong underlying operating performance.
• Net income attributable to common stockholders was $489 million, a 31% year-over-year increase, primarily due to higher operating income and a non-recurring fee from the atNorth joint venture investment.
• Diluted earnings per share (EPS) were $4.93, a 29% increase year-over-year.
• Adjusted EBITDA was $1.321 billion, a 15% increase year-over-year on an as-reported basis and 14% on a normalized and constant currency basis.
• Adjusted Funds from Operations (AFFO) was $1.156 billion, a 20% increase year-over-year on an as-reported basis and 14% on a normalized and constant currency basis excluding the atNorth fee benefit.
• Diluted AFFO per share was $11.64, an 18% increase year-over-year on an as-reported basis and 12% on a normalized and constant currency basis excluding the atNorth fee benefit.
• Cash cost of revenues for Q3 2026 was $830 million, and cash operating expenses were $420 million.
• Total debt principal outstanding as of September 30, 2026, was $25.217 billion, up from $21.417 billion at December 31, 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $3.027 billion.
• Free cash flow for the nine months ended September 30, 2026, was $(801) million, and adjusted free cash flow was $(567) million.

Guidance and Future Outlook:

• Raised full-year 2026 revenue guidance to $10.325–$10.365 billion, representing approximately 12% growth on both as-reported and normalized/constant currency bases.
• Raised full-year 2026 Adjusted EBITDA guidance to $5.290–$5.330 billion, reflecting an adjusted EBITDA margin of approximately 51% (a 200 basis point expansion over the previous year).
• Raised full-year 2026 AFFO guidance to $4.340–$4.380 billion.
• Raised full-year 2026 AFFO per share guidance to $43.71–$44.11, an 11–12% increase on a normalized and constant currency basis.
• Raised full-year 2026 expected cash dividends to approximately $2.037 billion.
• Provided Q4 2026 revenue guidance of $2.684–$2.724 billion, an 11–13% increase year-over-year on an as-reported basis.
• Provided Q4 2026 Adjusted EBITDA guidance of $1.328–$1.368 billion, with a margin of 49–50%.
• Accelerated new capacity delivery, with nearly 40% more cabinets planned for delivery in 2026 than initially anticipated.
• Total capital expenditures for 2026 are expected to range between $5 billion and $6 billion.

Business Segments and Product Lines:

• Delivered record annualized gross bookings of $533 million, up 35% year-over-year.
• Added 6,900 net interconnections in Q3 2026.
• Interconnection revenue grew 10% year-over-year on both as-reported and normalized/constant currency bases.
• Fabric revenue grew 24% year-over-year on both as-reported and normalized/constant currency bases.
• Monthly recurring revenue grew double digits year-over-year for the fourth consecutive quarter.
• Launched Equinix Fabric One, an any-to-any connectivity service with AWS and Google Cloud as lead integration partners.
• Announced Equinix Inference Exchange in collaboration with NVIDIA and Together AI to support AI inferencing workloads.
• Launched Equinix Enhanced Performance Innovation Centers (EPIC), a global network of production-ready liquid cooling environments for high-density AI infrastructure.
• Americas revenue was $1.148 billion, EMEA revenue was $878 million, and Asia-Pacific revenue was $545 million for Q3 2026.

Market and Competitive Landscape:

• The company cites robust demand and strengthening pricing as key drivers for growth.
• Equinix positions itself as serving both traditional and AI workloads, with a central role in enabling enterprise customers to run, connect, and orchestrate critical workloads.
• The company advanced its leadership on responsible infrastructure growth in Texas, supporting state standards on grid costs, water stewardship, and community impact.
• Established a partnership in Georgia where Equinix funds all grid infrastructure costs for its Hampton data center project through a 20-year commitment.

Risks and Challenges:

• Forward-looking statements note risks including inflationary environments, foreign currency exchange rate fluctuations, and stock price volatility.
• Challenges include sourcing suitable power and land, supply chain constraints, and increased costs of supplies for building and operating data centers.
• Risks involve the ability to generate sufficient cash flow to repay indebtedness, loss of key customers, and regulatory inquiries or litigation.
• Potential risks related to taxation as a REIT and the integration of acquired companies are also noted.

Management Commentary and Tone:

• CEO Adaire Fox-Martin stated that Q3 results and raised guidance reflect the differentiated position and growing importance of Equinix.
• Management highlighted double-digit growth across key metrics driving long-term value, including interconnection and monthly recurring revenue.
• The tone emphasized broad-based demand, accelerated capacity delivery, and a diverse customer base and ecosystem.
• Management expressed confidence that the company's balance sheet strength positions it well for sustained, profitable growth and shareholder value.

Other Key Points:

• Completed an investment in atNorth alongside CPP Investments to strengthen its position in the Nordic market and expand AI-ready, high-density data center infrastructure powered by renewable energy.
• The atNorth joint venture investment generated a non-recurring fee that contributed to the 31% year-over-year increase in net income.
• Total headcount as of September 30, 2026, was 14,042, with 6,021 in the Americas, 4,768 in EMEA, and 3,253 in Asia-Pacific.
• Total assets were $44.445 billion as of September 30, 2026, compared to $40.141 billion at December 31, 2025.
• Total common stockholders' equity was $14.537 billion as of September 30, 2026.
• Proceeds from senior notes issued during the nine months ended September 30, 2026, were $5.399 billion.
• Payments of dividends during the nine months ended September 30, 2026, totaled $1.547 billion.