Overview
Equinix (NASDAQ:EQIX) stock climbed around 10% in after-hours trading to approximately $954 following guidance for 2026 sales that exceeded consensus. The company attributed the outlook to robust demand for artificial intelligence data center capacity and updated its financial targets to reflect stronger growth expectations.
Revenue and AFFO guidance
Equinix set its 2026 revenue forecast in a range of $10.12 billion to $10.22 billion, above analyst estimates of $10.07 billion as compiled by LSEG. In addition, the company now expects adjusted funds from operations per share to grow 10.5% in 2026, a notable increase from the 5% AFFO per share growth target disclosed at its June 2025 investor day.
Bookings composition and early leasing progress
Management reported that 60% of its top fourth-quarter bookings were directed at AI workloads, and nearly half of those AI-related bookings are expected to be deployed by traditional enterprise customers rather than by cloud providers. The company has already secured 45% of its first-quarter bookings target, which it said indicates continued momentum heading into 2026.
Analyst reactions
Bank of America identified Equinix as its "top data center pick," noting expectations that half of the companys planned 240 megawatts of capacity will be leased to a hyperscale customer in the first quarter of 2026, with the balance leased by the end of the year. Barclays highlighted that while some non-recurring revenue was shifted from fourth-quarter 2025 into 2026, the company's growth trajectory remains strong and above consensus.
MoffettNathanson analysts observed improving conditions for Equinix, pointing to the potential for financing costs on capital expenditure plans to be lower than previously assumed. By contrast, Raymond James characterized the results as "solid" but retained a cautious stance, emphasizing that Equinix is in a multi-year transition to double its size and will incur significant capital spending in a compressed timeframe.
Key points
- Equinix guided 2026 revenue of $10.12 billion to $10.22 billion, above LSEG consensus of $10.07 billion.
- Management raised 2026 AFFO per share growth guidance to 10.5%, up from the prior 5% target announced in June 2025.
- AI workloads accounted for 60% of top Q4 bookings, with nearly half of those booked by traditional enterprise customers; 45% of Q1 booking targets are already closed.
Risks and uncertainties
- Some non-recurring revenue has been moved from fourth-quarter 2025 into 2026, which could affect the timing and comparability of near-term results - this impacts the company and the data center sector.
- Equinix is executing a multi-year program to double its size that requires substantial capital expenditure in a condensed period; execution risk and funding requirements are material considerations for investors and the infrastructure sector.
- Leasing and deployment timing for the planned 240MW capacity, including the expectation that half will be leased to a hyperscale customer by Q1 2026, create concentration and timing risks tied to large customer commitments.
Conclusion
The market rewarded Equinix for guidance that anticipates stronger-than-expected 2026 revenue and AFFO per share growth, underpinned by heavy AI workload demand and early leasing progress. Analysts differ in tone, with some noting potential upside from financing conditions and others cautioning about the operational and capital intensity of the company's expansion plans.