Equinix, Inc. (EQIX): A Bull Case Theory

Core Thesis - Equinix, Inc. is positioned as a leading player in digital infrastructure, benefiting from strong operational momentum and increasing demand driven by AI workloads [2][5]. Financial Performance - Revenue for Equinix reached approximately $9.2 billion, reflecting mid-single-digit growth year over year [2]. - Adjusted EBITDA margins approached 49%, with operating income showing significant growth [2]. - AFFO expanded to roughly $3.8 billion, indicating high-single-digit growth per share [3]. Market Position and Growth Drivers - The company reported record annualized gross bookings, with over half of large deals linked to AI, and interconnections exceeding 500,000 globally [3]. - Management anticipates double-digit revenue growth for 2026, with EBITDA margin expansion towards 51% and low double-digit AFFO growth [5]. Capital Intensity and Strategic Focus - Equinix remains highly capital intensive, with negative free cash flow due to ongoing data center buildouts and expansion efforts [4]. - Management prioritizes long-term strategic positioning and capacity over short-term cash flow, maintaining a consistent dividend that has increased by approximately 10% year over year [4]. Investment Considerations - Investors should consider the balance between the growth potential from AI and hybrid cloud exposure against the capital intensity and reliance on capital markets for funding [6]. - Equinix offers a unique investment opportunity by combining growth, strategic positioning, and dividend potential [6].