Equinix shares fall on soft third-quarter forecast
Equinix shares fall on soft third-quarter forecast July 29 (Reuters) - Equinix EQIX.O shares fell 3% on Wednesday as soft third-quarter forecast overshadowed a raised full-year and long-term outlook.
Here are some details:
For the third quarter, Equinix expects revenue of $2.53 billion to $2.58 billion, the midpoint of which is below analysts' estimate of $2.58 billion.
Equinix raised its forecast for 2026 revenue to a range of $10.21 to $10.29 billion, from $10.14 billion to $10.24 billion.
Equinix, which operates 281 data centres across the world, also raised its full-year adjusted funds from operations forecast to $42.69 to $43.29 per share from $42.31 to $43.11 per share.
The specialised data centre operator now expects annual revenue growth of 10% to 13% through 2029, up from a prior range of 7% to 10%, and AFFO per share growth of 9% to 12% annually versus 5% to 9% earlier.
Equinix, whose customers include Nvidia NVDA.O, Netflix NFLX.O, and Adobe ADBE.O, reported second-quarter revenue of $2.63 billion, above analysts' estimate of $2.58 billion.
The company said customer demand remains broad-based and growing, and that it is well positioned to meet the networking, cloud and AI infrastructure needs of enterprises globally.
Equinix provides organizations with secure, power-efficient space to house their IT equipment along with connectivity solutions.
(Reporting by Nithyashree R B in Bengaluru; Editing by Shailesh Kuber)
((NithyashreeRB@thomsonreuters.com))