Core Insights - Equinix Inc. (EQIX) reported second-quarter 2025 adjusted funds from operations (AFFO) per share of $9.91, exceeding the Zacks Consensus Estimate of $9.19, with total revenues of $2.26 billion also surpassing estimates by 0.03% [1][7] - Year-over-year, AFFO per share and total revenues increased by 7.5% and 4.5%, respectively [1] Revenue Breakdown - Colocation recurring revenues rose 5.7% year-over-year to $1.59 billion, exceeding the estimate of $1.57 billion [2] - Interconnection recurring revenues increased 8.8% year-over-year to $407 million, surpassing the estimate of $398.9 million [2] - Managed infrastructure recurring revenues grew by $1 million to $117 million, slightly below the estimate [3] - Total recurring revenues increased 5.9% year-over-year to $2.14 billion, just 0.5% above the estimate, driven by growth in various regions [4] - Non-recurring revenues fell 16.3% year-over-year to $113 million, below the estimate of $122.9 million, primarily due to a decline in Asia Pacific [4] Non-Financial Metrics - Worldwide-cabinet equivalent capacity increased by 4,200 to 376,000 quarter-over-quarter, exceeding the estimate of 375,788 [5] - Worldwide-cabinet billing rose by 1,200 to 292,500, which was lower than the estimate of 294,375 [5] - Worldwide-quarter-end utilization remained stable at 78%, closely matching the estimate of 78.01% [5] Financial Position - As of June 30, 2025, Equinix had $8.5 billion in available liquidity, which includes cash, cash equivalents, and undrawn revolver [6] - Total gross debt was approximately $18.1 billion, with a net leverage ratio of 3.5 and a weighted average maturity of 6.7 years [6] Guidance and Projections - For Q3 2025, Equinix projects revenues between $2.314 billion and $2.334 billion, indicating a 3% increase at the midpoint over the prior quarter [8] - The company raised its 2025 AFFO per share guidance to a range of $37.67 to $38.48, suggesting an 8-10% increase from the previous year [9] - Total revenue guidance for 2025 is now between $9.233 billion and $9.333 billion, reflecting a growth of 6-7% from 2024 [10] - Adjusted EBITDA is expected to be in the range of $4.517 billion to $4.597 billion, with an expected adjusted EBITDA margin improvement of 230 basis points over the previous year [10]

Core Viewpoint - Equinix, Inc. (EQIX) is expected to report second-quarter 2025 results on July 30, with anticipated revenue growth but a potential decline in adjusted funds from operations (AFFO) per share [1][9]. Financial Performance - In the previous quarter, Equinix reported an AFFO of $9.67 per share, exceeding the Zacks Consensus Estimate of $8.96 per share, driven by increased revenues from strong demand for digital infrastructure [2]. - Over the last four quarters, EQIX's AFFO per share surpassed consensus estimates three times, with an average beat of 3.6% [2]. Demand Drivers - The company is likely to benefit from robust demand for interconnected data center infrastructure, fueled by enterprises' and service providers' integration of artificial intelligence (AI) and digital transformation efforts [3]. - Strong demand for Equinix's interconnected ecosystem is supported by accelerated enterprise cloud adoption and increasing customer needs for interconnected data center space [4]. Revenue Projections - The Zacks Consensus Estimate for colocation revenues is $1.57 billion, reflecting a 4.6% increase from $1.50 billion in the prior-year period, while interconnection revenues are estimated at $398.9 million, indicating a 6.7% growth from $374 million [5]. - Equinix projects revenues between $2.244 billion and $2.264 billion for Q2 2025, with a consensus estimate of $2.26 billion, representing a 4.5% year-over-year increase [6]. Cost Considerations - High interest expenses are expected to impact the company's quarterly performance, with an estimated year-over-year increase of 12.6% for interest expenses [7]. - The Zacks Consensus Estimate for quarterly AFFO per share has been revised down by one cent to $9.19, indicating a 0.3% decrease from the prior-year quarter [7]. Earnings Prediction - Despite anticipated revenue growth, EQIX's AFFO per share may decline by 0.3% due to rising interest expenses [9]. - The current Earnings ESP for Equinix is -1.20%, and it holds a Zacks Rank of 4 (Sell), suggesting limited potential for an AFFO surprise this quarter [10].

Core Viewpoint - Apollo has agreed to acquire the European colocation business developed and managed by STACK Infrastructure in a carve-out transaction, aiming to leverage its expertise and resources to accelerate growth in the data center sector [1][3]. Company Overview - The Company consists of seven data center assets located in five key European markets: Stockholm, Oslo, Copenhagen, Milan, and Geneva, catering to a diverse range of blue-chip enterprise clients including telecommunications carriers, IT services companies, and financial institutions [2]. Strategic Intent - The CEO of the Company expressed enthusiasm about partnering with Apollo to enhance growth as a standalone entity, emphasizing the potential to capitalize on industry tailwinds and deliver greater value to stakeholders [3]. - Apollo's partner highlighted the strong demand for data center infrastructure, particularly for high-quality, interconnected colocation businesses, viewing this acquisition as a long-term growth opportunity [3]. Operational Focus - STACK EMEA's CEO noted the establishment of a dedicated enterprise colocation business unit to meet the specialized needs of the hyperscale sector while ensuring continued support for former enterprise colocation clients [3]. - The management team and all employees from the EMEA colocation business are expected to transition with the Company, which will undergo rebranding and will no longer use the STACK Infrastructure name [3]. Transaction Details - The acquisition is subject to certain closing conditions, including regulatory approvals, with Latham & Watkins LLP serving as legal counsel to the Apollo Funds [4].