Price target update
TD Cowen has increased its price objective for Equinix (NASDAQ: EQIX) to $1,123.00 from $995.00 while maintaining a Buy rating on the data center real estate investment trust. The new level implies roughly 30% upside from Equinix’s most recently reported share price of $867.52 for the company with an approximately $85 billion market capitalization.
Analyst consensus and valuation signals
According to InvestingPro data, analysts broadly lean toward a Buy recommendation on Equinix. InvestingPro’s analysis also flags the stock as trading above its Fair Value and highlights valuation metrics that suggest a richly priced multiple - a P/E ratio of 78.9 - together with an RSI reading consistent with overbought territory. InvestingPro notes additional valuation details in its Pro Research Report for subscribers.
Quarterly results and forward guidance
Equinix reported fourth-quarter 2025 results in which diluted earnings per share were $2.69, falling short of the $3.71 analysts had forecast. Revenue for the quarter was $2.42 billion, slightly below the $2.46 billion consensus. Despite missing near-term expectations, the company recorded a quarterly high in bookings and supplied guidance for the first quarter of 2026 and the full year 2026 that surpassed analyst estimates.
The company sees 2026 revenue in a range of $10.12 billion to $10.22 billion, outpacing the analyst projection of $10.07 billion. Equinix also projects adjusted funds from operations per share - AFFO - to rise 10.5% for 2026, a notable increase versus its prior guidance of 5%.
TD Cowen rationale
TD Cowen analyst Michael Elias highlighted the potential for accelerated revenue growth in 2026 and 2027 if the strong bookings trajectory continues. Elias noted that sustained booking momentum could lift 2027 AFFO per share growth to at or above the high end of the targets discussed at Equinix’s 2025 Investor Day. He also pointed to the company’s "sharper focus on OpEx/capex management" as a source of support for better operating leverage and improved efficiency.
Within TD Cowen’s REIT coverage universe, Equinix remains the firm’s top pick, reflecting the analyst team’s conviction in the company’s business model and growth path.
Other broker moves
Scotiabank raised its price target to $997, citing Equinix’s sizeable business backlog and the contribution expected from planned new site openings as drivers for accelerated earnings. Citizens reiterated a Market Outperform rating and assigned a $1,200 price target following the company’s earnings release. These repositionings reflect broker responses to the company’s strategic execution as outlined at its June 2025 investor meeting.
Demand dynamics
Equinix’s start to 2026 has been characterized by strong demand for artificial intelligence-optimized data centers, a factor the company and analysts cite as contributing to the optimistic top-line projections for the year.
Takeaway
The combination of record bookings and more ambitious 2026 guidance has prompted multiple firms to lift targets and affirm positive ratings, even after a quarter that missed on EPS and revenue. Analysts appear to be balancing the near-term earnings miss against stronger forward-looking demand and tighter cost discipline at the company.
Note: This article presents reported analyst actions, company results and valuation observations as provided by market data and brokerage commentary.