Stifel has increased its target price for Equinix (EQIX) to $1,075.00 from $1,020.00 and maintained a Buy recommendation on the company’s shares. The new target implies upside relative to the stock's trading level of $968.91 and comes as Equinix sits near its 52-week high.
Equinix’s most recent quarter contained a mix of headwinds and upside indicators. Reported fourth-quarter results fell short of expectations after a sizable contract was postponed into the first quarter of 2026. Despite that timing issue, the company recorded record bookings of $474 million - a 42% increase year-over-year - and posted a 10% year-over-year gain in monthly recurring revenue. Over the trailing twelve months, Equinix remained profitable with $1.07 billion in net income.
The company also reported operational milestones that underscore ongoing demand dynamics. Interconnections passed the 500,000 mark, stabilized-assets revenue rose 6% year-over-year, and the board approved a 10% increase to the quarterly dividend, marking the ninth straight year of dividend growth and producing a current yield of 2.16%.
Management set 2026 guidance that came in above analyst expectations. Revenue guidance targets 9% to 10% year-over-year growth, with projected EBITDA margins of 51%. Equinix signaled AFFO per share growth in the range of 8% to 10% for 2026 - a notable escalation from its prior outlook of roughly 5%+ growth. Stifel highlighted this raise in AFFO guidance as a meaningful step-up in the company’s earnings trajectory.
These forecasts align with the company’s historical top-line performance: Equinix has delivered a five-year revenue compound annual growth rate of 11%. Stifel also pointed to improving conversion metrics and pipeline dynamics to support the company’s momentum. In the fourth quarter, the conversion rate of the sales pipeline was 49%, and the firm expects faster sales cycles to translate into stronger conversions and bookings over the course of the year.
From a balance-sheet and liquidity perspective, Equinix is presented as operating with a moderate level of leverage and healthy near-term liquidity, including a current ratio of 1.34. The company’s market capitalization is reported at $94.5 billion, reflecting its scale within the Specialized REITs sector.
Despite the positive directional signals in guidance and backlog, the most recent quarter did include missed consensus figures. Fourth-quarter earnings per share were $2.69 versus a forecast of $3.71, and revenue for the quarter came in at $2.42 billion against a $2.46 billion expectation. Nevertheless, management’s outlook for the first quarter of 2026 and for the full year surpassed analyst estimates: full-year 2026 revenue was projected in a range of $10.12 billion to $10.22 billion, above the analyst consensus of $10.07 billion, and the company forecasted a 10.5% rise in adjusted funds from operations per share for 2026.
Other broker responses to Equinix’s results and outlook included a variety of upward target adjustments. TD Cowen raised its target to $1,123 and kept a Buy view, Scotiabank lifted its target to $997 citing strong backlog and site openings, and Citizens reiterated a Market Outperform rating with a $1,200 price objective. These actions reflect analyst recognition of both the underlying demand environment and the potential for earnings acceleration tied to the company’s guidance.
Takeaway - Equinix reported mixed quarter-to-quarter results but provided guidance for 2026 that improves the company’s near-term earnings growth outlook. Record bookings, higher recurring revenue, rising interconnections and a raised dividend contribute to a constructive operational picture, while the revenue and EPS misses in the fourth quarter underscore timing sensitivity tied to large deals.