Equinix raises annual outlook as quarterly revenue grows 11%
Equinix raised its annual revenue outlook after reporting stronger third-quarter sales and operating profit. The data-center operator also increased annualized gross bookings and added interconnections between customers. Management accelerated its cabinet delivery plan. Net income benefited partly from a non-recurring fee linked to the atNorth joint venture, alongside the improvement in operating earnings.
Economics & Markets··Midday
Revenue and operating profit grow
Equinix, the data-center operator, announced third-quarter financial results on October 28 for the period ended September 30. The company increased revenue and earnings from their year-earlier levels and raised its outlook for the full year.[1], [2]
Revenue increased 11 percent to 2,571 million dollars. On a normalized and constant-currency basis, growth was 12 percent. Operating income rose 27 percent to 600 million dollars. Net income attributable to common shareholders increased 31 percent to 489 million dollars, and diluted earnings per share rose 29 percent to 4.93 dollars. Equinix attributed the net-income gain to higher operating earnings and a non-recurring fee connected with its atNorth joint venture investment.[1]
Bookings and interconnections expand
Annualized gross bookings rose 35 percent to 533 million dollars. Equinix added 6,900 net interconnections, while interconnection revenue increased 10 percent. The company also expanded the number of cabinets it expects to deliver during 2026: the revised plan is nearly 40 percent above its initial expectation.[1]
Adjusted earnings before interest, taxes, depreciation and amortization were 1,321 million dollars, up 15 percent on the reported basis and 14 percent on a normalized, constant-currency basis. Adjusted funds from operations reached 1,156 million dollars, or 11.64 dollars per diluted share. Excluding the atNorth fee benefit, normalized constant-currency growth in adjusted funds from operations was 14 percent. These adjusted measures are defined separately from standard-accounting net income.[1]
Annual revenue outlook increases
Management now forecasts full-year revenue of 10,325 million dollars to 10,365 million dollars. Its adjusted funds from operations outlook is 4,340 million dollars to 4,380 million dollars, and total capital spending is projected at 5 billion dollars to 6 billion dollars. For the final quarter, revenue guidance is 2,684 million dollars to 2,724 million dollars. The projections depend on assumptions about exchange rates, demand and costs. They describe management's expected results for the remaining reporting period, alongside the completed September-quarter figures.[1]
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