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].