Equinix Provides Robust 2026 Outlook Driven by Strong Fourth-Quarter Results and Accelerating Business Momentum

Core Insights - Equinix reported strong fourth-quarter results, with a significant increase in annualized gross bookings and recurring revenue, indicating robust business momentum and a positive outlook for 2026 [1][2]. Financial Performance - Revenues for 2025 reached $9.217 billion, a 5% increase year-over-year on an as-reported basis, or a 6% increase on a normalized and constant currency basis [1][2]. - Operating income rose to $1.848 billion, marking a 39% increase from the previous year, driven by strong operational performance and reduced impairment charges [1][2]. - Net income attributable to common stockholders was $1.350 billion, a 66% increase from the previous year, resulting in earnings per share of $13.76, a 62% increase [1][2]. - Adjusted EBITDA for 2025 was $4.530 billion, with an adjusted EBITDA margin of 49%, reflecting an 11% increase year-over-year [1][2]. Quarterly Highlights - In Q4 2025, Equinix achieved record annualized gross bookings of $474 million, a 42% increase compared to the previous year [1][2]. - Monthly recurring revenue (MRR) for Q4 increased by 10% year-over-year, with a full-year MRR growth of 7% on an as-reported basis [1][2]. 2026 Guidance - For FY 2026, Equinix expects revenues to range between $10.123 billion and $10.223 billion, representing a projected increase of approximately 10-11% over the previous year [1][2]. - Adjusted EBITDA for 2026 is anticipated to be between $5.141 billion and $5.221 billion, with an adjusted EBITDA margin of around 51% [1][2]. - AFFO is expected to range from $4.158 billion to $4.238 billion, indicating an 11-13% increase over the previous year [1][2]. Business Developments - Equinix surpassed 500,000 interconnections globally, the highest in the industry, as enterprises increasingly rely on its services for AI, cloud, and network connectivity [1][2]. - The company opened 16 projects in 14 metros globally in 2025 and added 10 new expansion projects since October, bringing the total to 52 major expansion projects underway [2][3]. - Salesforce has deepened its partnership with Equinix to enhance its data and AI capabilities through a private network [2][3].