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Results reflect higher revenues and expanding margins, led by strong demand for digital infrastructure and services. Added 6,200 interconnections driven by cloud and AI expansion activities in the quarter, thereby reaching more than 492,000 total interconnections. The company also raised its outlook for 2025.
Total quarterly revenues of $2.26 billion surpassed the Zacks Consensus Estimate by 0.03%. Moreover, the top line increased 4.5% year over year.
Per Adaire Fox-Martin, CEO and president of Equinix, “Looking ahead to the next six months, we are confident in Equinix’s trajectory and the strength of our distinct and resilient market position. We believe we continue to stand apart with a powerful combination of differentiators: Our diverse and carrier-neutral ecosystems, rich interconnection capability, and unparalleled global presence in key metros position us exceptionally well to deliver continued value to our customers, growth to our business, and returns for our shareholders.”
EQIX’s Second Quarter in Detail
Recurring revenues were $2.14 billion, up 5.9% from the year-ago quarter. Our projection for the metric was $2.1 billion. Non-recurring revenues decreased 16.3% to $113 million. We estimated the metric to be $159 million.
Revenues from the Americas, the EMEA and the Asia Pacific rose 3.9%, 6.4% and 2.8% to $1 billion, $767 million and $485 million, year over year, respectively.
Adjusted EBITDA came in at $1.13 billion, up 9% year over year. We projected the metric at $1.1 billion. The adjusted EBITDA margin was reported at 50%.
AFFO rose 10.8% from the year-ago period to $972 million.
EQIX spent $55 million on recurring capital expenditure in the second quarter, up 22.2% on a year-over-year basis. Non-recurring capital expenditure was $934 million, up 54.9% year over year.
EQIX’s Balance Sheet Position
Equinix had $8.5 billion of available liquidity as of June 30, 2025. This comprised cash, cash equivalents, short-term investments and its undrawn revolver. It excludes restricted cash.
As of June 30, 2025, total gross debt was around $18.1 billion. Its net leverage ratio was 3.5, and the weighted average maturity was 6.7 years as of June 30, 2025.
EQIX’s Dividend
Concurrent with its second-quarter earnings, Equinix’s board of directors announced a quarterly cash dividend of $4.69 per share. The dividend will be paid out on Sept. 17 to shareholders on record as of Aug. 20, 2025.
2025 Guidance Revision by EQIX
For the third quarter of 2025, Equinix projects revenues between $2.314 billion and $2.334 billion, implying a 3% increase at the midpoint over the prior quarter. The adjusted EBITDA is expected to be in the range of $1.139-$1.159 billion.
The company has raised its 2025 AFFO per share guidance, which is now expected between $37.67 and $38.48 compared to the previous range of $37.36 and $38.17. This suggests an 8-10% increase from the previous year. The Zacks Consensus Estimate of $37.75 is within the guided range.
For 2025, Equinix has increased its guidance for total revenues in the band of $9.233-$9.333 billion compared to the prior range of $9.175-$9.275 billion. This indicates growth of 6-7% from 2024. Management predicts adjusted EBITDA in the range of $4.517-$4.597 billion compared to the previous range of $4.471-$4.551 billion. Adjusted EBITDA margin is expected to be 49%, around 230 basis points improvement over the previous year.
EQIX’s Zacks Rank
Equinix carries a Zacks Rank #4 (Sell) at present.
American Tower Corporation (AMT - Free Report) reported its second-quarter 2025 AFFO, attributable to AMT common stockholders per share, of $2.60, meeting the Zacks Consensus Estimate. This compares favorably with the prior year’s reported figure of $2.54.
Results reflected a year-over-year rise in revenues, aided by revenue growth across its property and service operations segment. AMT recorded healthy year-over-year organic tenant billings growth of 4.7% and total tenant billings growth of 5.2%.
Digital Realty Trust (DLR - Free Report) reported second-quarter 2025 core FFO per share of $1.87, beating the Zacks Consensus Estimate of $1.74. FFO per share also increased 13.3% year over year.
DLR’s result reflected steady leasing momentum with better rental rates amid rising demand. The company raised its 2025 core FFO guidance range.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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Equinix's Q2 AFFO & Revenues Beat Estimates, '25 View Raised
Key Takeaways
Equinix Inc.’s (EQIX - Free Report) second-quarter 2025 adjusted funds from operations (AFFO) per share of $9.91 outpaced the Zacks Consensus Estimate of $9.19. Moreover, the figure improved 7.5% from the prior-year quarter.
Results reflect higher revenues and expanding margins, led by strong demand for digital infrastructure and services. Added 6,200 interconnections driven by cloud and AI expansion activities in the quarter, thereby reaching more than 492,000 total interconnections. The company also raised its outlook for 2025.
Total quarterly revenues of $2.26 billion surpassed the Zacks Consensus Estimate by 0.03%. Moreover, the top line increased 4.5% year over year.
Per Adaire Fox-Martin, CEO and president of Equinix, “Looking ahead to the next six months, we are confident in Equinix’s trajectory and the strength of our distinct and resilient market position. We believe we continue to stand apart with a powerful combination of differentiators: Our diverse and carrier-neutral ecosystems, rich interconnection capability, and unparalleled global presence in key metros position us exceptionally well to deliver continued value to our customers, growth to our business, and returns for our shareholders.”
EQIX’s Second Quarter in Detail
Recurring revenues were $2.14 billion, up 5.9% from the year-ago quarter. Our projection for the metric was $2.1 billion. Non-recurring revenues decreased 16.3% to $113 million. We estimated the metric to be $159 million.
Revenues from the Americas, the EMEA and the Asia Pacific rose 3.9%, 6.4% and 2.8% to $1 billion, $767 million and $485 million, year over year, respectively.
Adjusted EBITDA came in at $1.13 billion, up 9% year over year. We projected the metric at $1.1 billion. The adjusted EBITDA margin was reported at 50%.
AFFO rose 10.8% from the year-ago period to $972 million.
EQIX spent $55 million on recurring capital expenditure in the second quarter, up 22.2% on a year-over-year basis. Non-recurring capital expenditure was $934 million, up 54.9% year over year.
EQIX’s Balance Sheet Position
Equinix had $8.5 billion of available liquidity as of June 30, 2025. This comprised cash, cash equivalents, short-term investments and its undrawn revolver. It excludes restricted cash.
As of June 30, 2025, total gross debt was around $18.1 billion. Its net leverage ratio was 3.5, and the weighted average maturity was 6.7 years as of June 30, 2025.
EQIX’s Dividend
Concurrent with its second-quarter earnings, Equinix’s board of directors announced a quarterly cash dividend of $4.69 per share. The dividend will be paid out on Sept. 17 to shareholders on record as of Aug. 20, 2025.
2025 Guidance Revision by EQIX
For the third quarter of 2025, Equinix projects revenues between $2.314 billion and $2.334 billion, implying a 3% increase at the midpoint over the prior quarter. The adjusted EBITDA is expected to be in the range of $1.139-$1.159 billion.
The company has raised its 2025 AFFO per share guidance, which is now expected between $37.67 and $38.48 compared to the previous range of $37.36 and $38.17. This suggests an 8-10% increase from the previous year. The Zacks Consensus Estimate of $37.75 is within the guided range.
For 2025, Equinix has increased its guidance for total revenues in the band of $9.233-$9.333 billion compared to the prior range of $9.175-$9.275 billion. This indicates growth of 6-7% from 2024. Management predicts adjusted EBITDA in the range of $4.517-$4.597 billion compared to the previous range of $4.471-$4.551 billion. Adjusted EBITDA margin is expected to be 49%, around 230 basis points improvement over the previous year.
EQIX’s Zacks Rank
Equinix carries a Zacks Rank #4 (Sell) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Equinix, Inc. Price, Consensus and EPS Surprise
Equinix, Inc. price-consensus-eps-surprise-chart | Equinix, Inc. Quote
Performance of Other REITs
American Tower Corporation (AMT - Free Report) reported its second-quarter 2025 AFFO, attributable to AMT common stockholders per share, of $2.60, meeting the Zacks Consensus Estimate. This compares favorably with the prior year’s reported figure of $2.54.
Results reflected a year-over-year rise in revenues, aided by revenue growth across its property and service operations segment. AMT recorded healthy year-over-year organic tenant billings growth of 4.7% and total tenant billings growth of 5.2%.
Digital Realty Trust (DLR - Free Report) reported second-quarter 2025 core FFO per share of $1.87, beating the Zacks Consensus Estimate of $1.74. FFO per share also increased 13.3% year over year.
DLR’s result reflected steady leasing momentum with better rental rates amid rising demand. The company raised its 2025 core FFO guidance range.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.