Equinix said it expects annual revenue to exceed analysts' estimates, pointing to strong demand linked to generative artificial intelligence for its data center services. The announcement sent the shares higher by more than 6% in extended trading as the company updated its sales outlook and highlighted continued investment in capacity.
The company provided a full-year 2026 revenue range of $10.12 billion to $10.22 billion, compared with consensus estimates of $10.07 billion compiled by LSEG. For the first quarter, Equinix forecast revenue between $2.50 billion and $2.54 billion, ahead of the $2.46 billion estimate.
"Equinix plays an essential role helping businesses connect and manage increasingly distributed AI, cloud and networking infrastructure. This is a source of long-term competitive advantage," CEO Adaire Fox-Martin said in a statement.
Executives said the company is accelerating capacity buildouts to meet rising demand, including new data center projects in emerging markets such as Chennai, India and Jakarta, Indonesia. Management framed these investments as a response to the need for specialized facilities that support generative AI and other distributed compute workloads.
For the December quarter, Equinix reported revenue of $2.42 billion, which fell short of the $2.46 billion analysts had expected. Management said results for the quarter were modestly affected by the timing of a transaction related to leasing one of its sites; that transaction is now expected to close in early 2026.
On profitability, net income from continuing operations was $264 million for the quarter, a reversal from a loss of $14 million in the year-ago period.
The guidance and commentary underline Equinix's positioning to capture enterprise and cloud spending tied to AI projects while also drawing attention to near-term timing issues tied to specific site transactions. The company did not provide additional new numerical details beyond its revenue ranges and quarterly results.