Scotiabank has increased its 12-month price target for Equinix to $997.00 from $959.00 and left its Sector Outperform rating unchanged, positioning the new target about 15% above the stock's quoted level of $867.52. External data from InvestingPro shows the shares are trading at a P/E multiple of 78.88.
The bank's upward revision follows what it describes as a strong start to 2026 for Equinix, driven by a solid business backlog and a slate of planned new site openings that Scotiabank expects will accelerate earnings. As a sizable participant within the Specialized REITs category, Equinix carries a market capitalization cited at $85.18 billion and has delivered revenue growth of 5.63% over the last twelve months.
Scotiabank highlighted a meaningful shift in enterprise behavior - large customers are beginning to deploy artificial intelligence capabilities at scale - and said that trend is translating into a larger funnel of business for the data center operator.
On guidance, Equinix provided an updated outlook for 2026 that calls for 8-10% growth in AFFO - Adjusted Funds From Operations - per share, a step up from the previous expectation of greater than 5% shared at the company's analyst day in June. Scotiabank quantified the drivers behind an attributed 4% improvement to guidance as follows: roughly 1% from the timing of new xScale leases, about 1% from a reduction in interest cost drag, and the remaining improvement from a generally stronger business outlook.
Equinix's own revenue projection for 2026 was highlighted as a range between $10.12 billion and $10.22 billion, which exceeds the analyst consensus figure of $10.07 billion reported by LSEG. The firm attributed part of that top-line strength to demand for artificial intelligence-focused data centers. Separately, Equinix signaled a 10.5% increase in adjusted funds from operations per share by 2026, a marked rise from the earlier guidance of 5% issued in June 2025.
Market reactions from other analysts were also noted. Citizens reiterated a Market Outperform rating and set a price target of $1,200 following Equinix's recent earnings update.
Turning to recent quarterly results, Equinix reported fourth-quarter 2025 earnings per share of $2.69, which missed the forecast of $3.71. Revenue for the same quarter came in at $2.42 billion, slightly under the expected $2.46 billion. Despite these shortfalls versus estimates, Equinix shares were reported as stable in aftermarket trading.
What this means
- Scotiabank's target increase reflects conviction that backlog and site rollouts, combined with growing AI deployments, will lift near-term earnings momentum.
- Equinix's revised 2026 guidance and revenue range imply stronger demand dynamics than previously assumed by some analysts.
- Despite recent EPS and revenue misses for Q4 2025, market response was muted, and other firms continue to rate the stock positively with higher targets in some cases.
Context and data points
- New Scotiabank price target: $997.00 (from $959.00) with Sector Outperform.
- Current quoted share price referenced: $867.52; P/E: 78.88 (InvestingPro).
- Market capitalization referenced: $85.18 billion; trailing 12-month revenue growth: 5.63%.
- 2026 guidance: 8-10% AFFO per share growth versus prior >5% guidance shared in June.
- Drivers of the 4% guidance improvement: ~1% xScale lease timing, ~1% lower interest cost drag, remainder from improved business outlook.
- 2026 revenue projection: $10.12 billion to $10.22 billion; LSEG analyst consensus: $10.07 billion.
- Equinix anticipates 10.5% AFFO per share growth by 2026 versus earlier 5% guidance from June 2025.
- Q4 2025: EPS $2.69 (vs. $3.71 expected); revenue $2.42 billion (vs. $2.46 billion expected). Shares stable in aftermarket.