Equinix Q2 revenue rises 16%, beats estimates; lifts 2026 outlook
Equinix Q2 revenue rises 16%, beats estimates; lifts 2026 outlook
Overview
US data center operator's Q2 revenue rose 16% yr/yr, beating analyst expectations
Net income for Q2 increased 30% yr/yr, beating analyst estimates
Company raised full-year 2026 guidance on stronger demand and bookings
Outlook
Equinix raises 2026 revenue guidance to $10.205-$10.285 bln from $10.144-$10.244 bln
Company expects Q3 2026 revenue between $2.525 bln and $2.575 bln
Equinix lifts long-term annual revenue growth outlook to 10-13% for 2027-2029, up from 7-10%
Result Drivers
RECURRING REVENUE GROWTH - Monthly recurring revenue grew 11% yr/yr, reflecting broad-based demand
GROSS BOOKINGS AND BACKLOG - Annualized gross bookings grew 23% yr/yr, contributing to a record backlog
XSCALE FEES - One-time xScale fees contributed to revenue and profit growth
Company press release: ID:nPn3vj2Wha
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $2.63 bln | $2.58 bln (20 Analysts) |
Q2 EPS |
| $4.83 |
|
Q2 Net Income | Beat | $477 mln | $464.05 mln (11 Analysts) |
Q2 Income From Operations | Beat | $665 mln | $657.77 mln (16 Analysts) |
Q2 Pretax Profit | Slight Beat* | $523 mln | $520.70 mln (13 Analysts) |
Q2 Basic EPS |
| $4.86 |
|
Q2 Gross Profit |
| $1.40 bln |
|
Q2 Operating Expenses |
| $730 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 28 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialized reits peer group is "buy"
Wall Street's median 12-month price target for Equinix Inc is $1,210.00, about 16.9% above its July 28 closing price of $1,034.86
The stock recently traded at 54 times the next 12-month earnings vs. a P/E of 57 three months ago
Reuters Recommended Reads
July 28 - South Africa tribunal approves Equinix data centres despite activist objections
July 29 - CBRE raises profit forecast as data center expansion boosts real estate services demand
July 29 - Ireland's Johnson Controls Q3 sales beat on data center demand; raises outlook
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)