Equinix Q4 Earnings Call Highlights

Core Insights - The company reported its "best quarter ever," with over 3,400 customers involved in transactions during the fourth quarter [1] Financial Performance - Fourth-quarter revenue reached $2.4 billion, a 7% increase year-over-year, driven by strong monthly recurring revenue (MRR) [9] - Adjusted EBITDA for the fourth quarter was $1.2 billion, representing approximately 49% of revenue, up 15% from the previous year [10] - Annualized gross bookings for 2025 were reported at $1.6 billion, a 27% year-over-year increase, with fourth-quarter bookings of $474 million, up 42% year-over-year and 20% sequentially [2][6] Growth Metrics - The company achieved normalized MRR growth of 10% in the fourth quarter and 8% for the full year [3][6] - Management expects 2026 revenue growth of 9-10% and MRR growth of 8-10%, with an adjusted EBITDA margin near 51% [5][17] Demand Drivers - Approximately 60% of the largest deals in the fourth quarter were driven by AI workloads, an increase from about 50% earlier in the year [7] - AI deployments showed a 33% increase in power density compared to non-AI deals, indicating a shift towards denser and more complex infrastructure needs [8] Capacity Expansion - The company delivered over 12,000 retail cabinets in the fourth quarter and added roughly 1 GW to its powered land under control through strategic acquisitions [12][14] - Capital expenditures totaled about $1.4 billion in the fourth quarter, with 52 major projects underway across 35 markets [13] Future Outlook - The company anticipates a global MRR churn of 2.2% in the fourth quarter, below plan, and net interconnection additions of 7,800 in the quarter [16] - Management indicated that expectations for 2026 are "meaningfully ahead" of previous guidance shared at the June 2025 Analyst Day [18]