Financial Data and Key Metrics Changes - Global Q3 revenues were approximately $2.32 billion, up 5% year over year [21] - Global Q3 adjusted EBITDA was $1.15 billion, approximately 50% of revenues, up 8% year over year [22] - Global Q3 AFFO was $965 million, up 12% year over year, significantly above expectations [22] - Monthly Recurring Revenue (MRR) churn in Q3 decreased to 2.3%, with expectations for Q4 to be within 2% to 2.5% [22] Business Line Data and Key Metrics Changes - MRR growth was 8% year over year on a normalized and constant currency basis [5] - Interconnection revenue grew 8% year over year to $422 million, driven by a 57% year-over-year increase in Equinix Fabric bookings [11] - The company closed over 4,400 deals with more than 3,400 customers in Q3, reflecting strong demand across various sectors [7] Market Data and Key Metrics Changes - The company achieved record annualized gross bookings of $394 million, a 25% increase year over year [5] - The demand for latency-sensitive AI and non-AI workloads has significantly increased, supporting data residency and sovereignty requirements [8] Company Strategy and Development Direction - The company aims to double its capacity by 2029, supported by recent land acquisitions in key metros [7][14] - The strategy includes three moves: Serve Better, Solve Smarter, and Build Bolder, focusing on customer value, simplifying solutions, and accelerating capacity delivery [9][11][13] - The company is actively pursuing land acquisitions to support over 900 megawatts of retail and xScale capacity [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand backdrop and the ability to secure future growth through strategic land acquisitions [18] - The company is focused on executing Q4 expectations and building momentum for 2026, with a strong pipeline for bookings [27] - Management noted that the pricing environment remains firm, with no dilution in pricing despite increased pre-sales activity [52] Other Important Information - The company has issued approximately $9.5 billion in green bonds, with $7 billion allocated to eligible green projects [23] - Capital expenditures for the quarter were approximately $1.14 billion, with a focus on opening new data centers and expanding capacity [24] Q&A Session Summary Question: How strategic are the new cloud on-ramps and what is being done to attract AI magnets? - Management highlighted the market-leading position in native cloud on-ramps and the importance of connectivity for enterprise customers [30] Question: Is the strength in pre-sales activity due to changes in the sales approach? - Management confirmed that the new pre-sales strategy has contributed to increased bookings and visibility for future capacity [40] Question: What is the current pricing environment and expectations for 2026? - Management indicated firm pricing and confidence in demand, with a focus on revenue execution and cost management for 2026 [48][52] Question: Can you provide details on the land acquisitions and their intended use? - Management stated that significant portions of the new land acquisitions in London and Chicago will be earmarked for xScale business [58] Question: What is the confidence level regarding power availability for xScale projects? - Management confirmed that all current xScale projects have secured power, indicating no constraints on development [87]

Financial Data and Key Metrics Changes - Equinix reported global Q3 revenues of approximately $2.32 billion, up 5% year-over-year, with recurring revenue growth stepping up 8% [21][22] - Adjusted EBITDA for Q3 was $1.15 billion, approximately 50% of revenues, reflecting an 8% increase year-over-year [22] - AFFO for Q3 was $965 million, up 12% year-over-year, significantly exceeding expectations due to strong operating performance [22][23] - MRR churn in Q3 decreased to 2.3%, with expectations for Q4 to remain within the 2%-2.5% range [22] Business Line Data and Key Metrics Changes - The company achieved record annualized gross bookings of $394 million in Q3, a 25% increase year-over-year [5][10] - Interconnection revenue grew 8% year-over-year to $422 million, driven by a 57% increase in Equinix Fabric bookings [11] - The company added 7,100 net interconnection connections in Q3, bringing the total to over 499,000 [11] Market Data and Key Metrics Changes - The company closed over 4,400 deals with more than 3,400 customers in Q3, indicating strong demand across various sectors [7][8] - Significant momentum was noted in key verticals such as automotive, financial services, and cloud and AI service providers [8] Company Strategy and Development Direction - Equinix aims to double its capacity by 2029, supported by recent land acquisitions in major metros [7][14] - The strategy includes three key moves: Serve Better, Solve Smarter, and Build Bolder, focusing on customer value, simplifying solutions, and accelerating capacity delivery [9][10][12] - The company is actively pursuing land acquisitions to support over 900 MW of retail and xScale capacity [13][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, emphasizing strong demand and the ability to secure land for expansion [27] - The company is focused on executing Q4 expectations and building momentum for 2026, with a strong pipeline for bookings [27][25] - Management highlighted the importance of capital allocation and maintaining a strong balance sheet to support future growth [18][23] Other Important Information - Equinix's balance sheet was approximately $38 billion, with cash and short-term investments totaling $2.9 billion [23] - Capital expenditures for the quarter were approximately $1.14 billion, with a focus on opening new projects in key markets [24] Q&A Session Summary Question: How strategic are the new cloud on-ramps and what is being done to attract AI magnets? - Management highlighted their market-leading position in native cloud on-ramps and the importance of engaging with AI-focused companies to enhance connectivity [29][30] Question: Is the strength in pre-sales activity due to changes in sales strategy? - Management confirmed that the new pre-sales strategy has contributed to increased bookings, with significant activity in high-demand markets [34][39] Question: What is the pricing environment like and are prices firm? - Management indicated that pricing remains firm, with no dilution observed, and expressed confidence in the demand outlook for 2026 [46][52] Question: Can you provide details on the land acquisitions and their intended use? - Management stated that recent land acquisitions will primarily support xScale business, particularly in London and Chicago, while also considering retail needs [55][58] Question: What is the status of power availability for xScale projects? - Management confirmed that all current xScale projects have secured power, indicating no constraints on development [84][87] Question: How should investors view the annualized gross bookings and pre-sold gross bookings? - Management noted that while bookings can be volatile, the underlying demand remains strong, and they expect to meet Q4 targets based on current momentum [90][92]

Financial Data and Key Metrics Changes - Equinix reported global Q3 revenues of approximately $2.32 billion, representing a 5% increase year-over-year [18] - Monthly Recurring Revenue (MRR) growth was 8% year-over-year on a normalized and constant currency basis [4] - Adjusted EBITDA for Q3 was $1.15 billion, approximately 50% of revenues, up 8% year-over-year [19] - Adjusted Funds From Operations (AFFO) was $965 million, up 12% year-over-year, exceeding expectations [19] Business Line Data and Key Metrics Changes - Interconnection revenue grew 8% year-over-year to $422 million, driven by a 57% increase in Equinix Fabric bookings [10] - The company closed over 4,400 deals with more than 3,400 customers in Q3, indicating strong demand across various sectors [6] - Annualized gross bookings reached a record $394 million, a 25% increase year-over-year [4] Market Data and Key Metrics Changes - The Americas region showed significant strength, contributing to the overall revenue growth, while EMEA experienced some one-off impacts affecting margins [73] - The company opened its 77th market in Chennai, India, and added eight major projects across seven markets [12][21] Company Strategy and Development Direction - Equinix aims to double its capacity by 2029, supported by recent land acquisitions in key metros [5][52] - The strategy includes three key moves: Serve Better, Solve Smarter, and Build Bolder, focusing on customer value, simplifying solutions, and expanding capacity [8][10] - The company is actively pursuing land acquisitions to support over 900 megawatts of capacity, enhancing its ability to meet customer demand [12][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing strong demand and a robust pipeline for Q4 and beyond [25] - The company is focused on maintaining profitability while expanding capacity to meet increasing market demands [16] - Management highlighted the importance of capital allocation and maintaining a strong balance sheet to support growth initiatives [16][47] Other Important Information - Equinix's cash and short-term investments totaled $2.9 billion, with net leverage at 3.6 times annualized adjusted EBITDA [20] - The company has issued approximately $9.5 billion in green bonds, with $7 billion allocated to eligible green projects [20] Q&A Session Summary Question: How strategic are the new cloud on-ramps and what is being done to attract AI magnets? - Management emphasized their market-leading position in native cloud on-ramps and the importance of attracting AI companies through strong customer relationships [28][30] Question: Is the strength in pre-sales activity due to changes in the sales approach? - Management confirmed that the new pre-sales strategy has contributed to increased bookings, with significant activity in high-demand markets [37][38] Question: What is the current pricing environment and expectations for 2026? - Management indicated firm pricing and confidence in demand, with a focus on revenue execution and cost management [44][50] Question: Can you provide details on the land acquisitions and their intended use? - Management stated that significant portions of the new land acquisitions in London and Chicago will be earmarked for xScale business, with flexibility in capacity allocation [52][53] Question: What is the confidence level regarding power availability for xScale projects? - Management assured that all current xScale projects have secured power, highlighting their strong relationships with utility providers [79]

Core Insights - Equinix reported quarterly funds from operations (FFO) of $9.83 per share, exceeding the Zacks Consensus Estimate of $9.26 per share, and up from $9.05 per share a year ago, representing an FFO surprise of +6.16% [1] - The company posted revenues of $2.32 billion for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.32%, but showing an increase from $2.2 billion year-over-year [2] - Equinix shares have underperformed the market, losing about 13.4% since the beginning of the year compared to the S&P 500's gain of 17.2% [3] Financial Performance - Over the last four quarters, Equinix has surpassed consensus FFO estimates three times and topped revenue estimates two times [2] - The current consensus FFO estimate for the upcoming quarter is $9.36 on revenues of $2.45 billion, and for the current fiscal year, it is $38.19 on revenues of $9.26 billion [7] Market Outlook - The sustainability of Equinix's stock price movement will depend on management's commentary during the earnings call and future FFO expectations [3][4] - The estimate revisions trend for Equinix was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - The REIT and Equity Trust - Retail industry, to which Equinix belongs, is currently in the top 33% of Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Performance - Record annualized gross bookings reached $394 million, a 25% increase year-over-year and a 14% increase compared to Q2 2025[11, 12] - Monthly recurring revenue (MRR) increased by 8% year-over-year on both an as-reported and normalized constant currency basis[12] - Q3 2025 revenues totaled $2316 million, reflecting a 3% QoQ and 5% YoY growth as-reported[18] - Adjusted EBITDA for Q3 2025 was $1148 million, with a 2% QoQ and 10% YoY increase as-reported[18] - Q3 2025 AFFO reached $965 million, showing a 1% QoQ decrease but an 11% YoY increase as-reported[18] Capacity and Expansion - Total developable capacity grew to approximately 3 GW, a nearly 50% increase from last quarter[15] - Land acquisitions across Amsterdam, Chicago, Johannesburg, London, and Toronto will support over 900 megawatts of retail and xScale capacity at full build-out[12] - The company owns 169 of 273 data centers, and owned assets generate 69% of recurring revenues[73, 51] Guidance - FY 2025 revenue guidance is $9208 - $9328 million[34] - FY 2025 adjusted EBITDA guidance is $4531 - $4611 million, with an approximate 49% margin[34] - Q4 2025 revenue guidance is $2411 - $2531 million[34] - Q4 2025 adjusted EBITDA guidance is $1187 - $1267 million, with a 49-50% margin[34]

Company Overview - The company operates a global platform with 273 IBX data centers, including 21 xScale data centers, across 77 markets[142]. - The global MTDC market is highly fragmented, with the company being one of over 2,400 providers, benefiting from the shift towards outsourcing IT housing and interconnection requirements[147]. Revenue and Growth - More than 90% of total revenues over the past three years have come from recurring revenues, primarily from colocation and interconnection services[153]. - Revenues for the three months ended September 30, 2025, increased to $2,316 million, a 5% increase from $2,201 million in 2024[166]. - Recurring revenues accounted for 96% of total revenues in Q3 2025, increasing by $156 million or 8% compared to Q3 2024[169]. - Americas revenues rose by $77 million or 8%, driven by growth in recurring revenues[169]. - EMEA revenues increased by $41 million or 6%, attributed to higher orders from existing and new customers[169]. - Total revenues for the nine months ended September 30, 2025, were $6,797 million, a 5% increase from $6,487 million in 2024[207]. - Americas revenues increased by $177 million or 6% for the nine months ended September 30, 2025, primarily due to recurring revenues growth[209]. - EMEA revenues grew by $103 million or 5% for the nine months ended September 30, 2025, despite a decrease in non-recurring services[210]. Expenses and Costs - Operating expenses are primarily driven by fixed costs, with significant components including depreciation and utility costs[155]. - Cost of revenues for Q3 2025 was $1,142 million, a 4% increase from $1,098 million in 2024[171]. - General and administrative expenses rose to $470 million, an 8% increase from $434 million in the prior year[184]. - Cost of revenues for the nine months ended September 30, 2025, was $3,310 million, a slight increase of 1% from $3,271 million in 2024[211]. - General and administrative expenses for the nine months ended September 30, 2025, totaled $1,359 million, up 3% from $1,315 million in 2024[226]. - Sales and marketing expenses decreased by $13 million or 2% for the nine months ended September 30, 2025, compared to the same period in 2024[220]. Income and Profitability - Income from operations increased to $474 million, a 12% rise from $425 million in Q3 2024[191]. - Net income increased by $78 million or 26% for the three months ended September 30, 2025, compared to the same period in 2024[203]. - Adjusted EBITDA for the three months ended September 30, 2025, was $1,148 million, a 10% increase from $1,048 million in 2024[204]. - Net income increased by $256 million or 31% to $1,084 million for the nine months ended September 30, 2025, compared to $828 million in 2024[246]. - Adjusted EBITDA increased by $268 million or 9% to $3,344 million for the nine months ended September 30, 2025, compared to $3,076 million in 2024[247]. Dividends and REIT Compliance - On September 17, 2025, the company paid a quarterly cash dividend of $4.69 per share, with expectations to maintain distributions equal to or exceeding REIT taxable income for 2025[163]. - The company continues to monitor its REIT compliance to maintain qualification for U.S. federal income taxation as a REIT[161]. - The company expects non-recurring revenues to represent less than 10% of total revenues for the foreseeable future[154]. Acquisitions and Expansion - The company completed the acquisition of TIM NextGen DC Corporation for $183 million, enhancing its data center capabilities[167]. - The company plans to pursue additional expansion opportunities, including building new IBX data centers in existing markets and potential acquisitions[264]. - The company has entered into joint venture partnerships to develop and operate xScale data centers to meet the growing demand from hyperscale cloud service providers[149]. Cash Flow and Liquidity - As of September 30, 2025, the company had $2.9 billion in cash, cash equivalents, and short-term investments, along with an additional $4.0 billion available from a revolving facility[262]. - Net cash provided by operating activities increased by $499 million to $2.767 billion for the nine months ended September 30, 2025, compared to $2.268 billion in 2024[265]. - Net cash used in investing activities rose by $948 million to $3.774 billion for the nine months ended September 30, 2025, primarily due to increased capital expenditures[267]. - The company has sufficient liquidity to meet operating requirements, including debt repayment and dividend distribution[263]. Foreign Currency and Interest Rate Risk - The company experienced favorable foreign currency impacts on revenue and operating income due to a weaker U.S. dollar against the British pound and Euro during the three and nine months ended September 30, 2025[260]. - The company has implemented several hedging programs to manage foreign currency risk, including cash flow, balance sheet, and net investment hedging programs[277]. - A hypothetical 10% strengthening of the U.S. dollar would have reduced revenues by approximately $209 million and operating expenses by about $192 million for the nine months ended September 30, 2025[280]. - Conversely, a hypothetical 10% weakening of the U.S. dollar would have increased revenues by approximately $266 million and operating expenses by about $240 million for the same period[281]. - The company is exposed to interest rate risk related to outstanding debt, but an immediate change in interest rates would not materially impact interest expense due to fixed coupon rates on most debt obligations[282]. - Interest rate locks are periodically used to hedge interest rate exposure from anticipated fixed-rate debt issuances, with gains or losses amortized to interest expense over the term of the hedged transaction[283].

Core Viewpoint - Equinix has lowered its annual revenue forecast due to delays in closing a deal and adverse foreign exchange impacts, despite expectations from Wall Street for the company to benefit from increased spending on AI infrastructure [1] Group 1: Company Performance - Equinix is experiencing delays in closing a deal, which has contributed to the lowered revenue forecast [1] - The company is facing negative impacts from foreign exchange rates, further affecting its financial outlook [1] Group 2: Market Expectations - Wall Street anticipates that Equinix will benefit from the growing investment in AI infrastructure, indicating a potential for future growth despite current challenges [1]

Equinix Investor Relations Contacts: Equinix Media Contacts: invest@equinix.com press@equinix.com FOR IMMEDIATE RELEASE Third-Quarter 2025 Results Summary • Adjusted EBITDA ◦ $1.148 billion, an adjusted EBITDA margin of 50%, a 10% increase over the same quarter of the previous year on an as-reported basis, or an 8% increase on a normalized and constant currency basis, exceeding the midpoint of guidance on a constant currency basis driven by strong operating performance • AFFO and AFFO per Share EQUINIX REPO ...

Core Insights - Equinix is a global leader in data center and colocation services, providing digital infrastructure solutions to businesses worldwide, with a strong network of interconnected data centers supporting cloud services and digital transformation [1] Financial Performance - Equinix is set to release its quarterly earnings on October 29, 2025, with analysts estimating an EPS of $9.26 and projected revenue of approximately $2.33 billion, representing a 5.6% increase from the same period last year [2] - In the previous quarter, Equinix reported an AFFO of $9.91 per share, surpassing the Zacks Consensus Estimate of $9.19 per share, indicating strong performance driven by increased revenues from digital infrastructure and services [3][6] - Over the past four quarters, Equinix's AFFO per share has exceeded consensus estimates three times, showcasing consistent financial strength [3] Valuation Metrics - Equinix's financial metrics include a P/E ratio of approximately 80.33, a price-to-sales ratio of about 8.93, an enterprise value to sales ratio of around 10.97, and an enterprise value to operating cash flow ratio of approximately 28.08, reflecting its market valuation and operational efficiency [4][6] - The company's debt-to-equity ratio stands at approximately 1.55, indicating a balanced approach to leveraging debt for growth, while maintaining a current ratio of about 1.54, which suggests a healthy liquidity position [5][6]

Core Insights - Equinix Inc. is set to report its Q3 2025 earnings on October 29, with analysts predicting an EPS of $5.44, a decrease from $9.05 in the same period last year, while quarterly revenue is expected to rise to $2.32 billion from $2.20 billion a year earlier [2][4] Financial Performance - In Q2 2025, Equinix reported FFO of $9.91, surpassing the consensus estimate of $9.30, although revenues of $2.25 billion fell slightly short of the consensus of $2.26 billion [3] - For the full year 2025, the company anticipates AFFO per share to be between $37.67 and $38.48 [4] Stock and Dividend Information - Equinix's stock price has fluctuated between $701.41 and $994.03 over the past 52 weeks [2] - The company has a dividend yield of 2.28%, having paid $18.72 per share in dividends over the last 12 months [2] - To generate a monthly income of $100 from Equinix dividends, an investment of approximately $52,631 is required, based on the current dividend yield [6]