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Equinix posts Q2 AFFO per share of $9.91 and $2.26B in revenues, both beating the Zacks Consensus Estimate.
Recurring revenues rose 5.9% Y/Y, led by gains in colocation and interconnection revenues.
Worldwide cabinet equivalent capacity grew Q/Q by 4,200 in Q2 2025 to 376,000.
Equinix Inc. (EQIX - Free Report) reported second-quarter 2025 adjusted funds from operations (AFFO) per share of $9.91, outpacing the Zacks Consensus Estimate of $9.19. Similarly, total revenues of $2.26 billion surpassed the Zacks Consensus Estimate by just 0.03%.
Moreover, AFFO per share and the top line increased 7.5% and 4.5%, respectively, year over year.
EQIX's Recurring Revenues Rise, Non-Recurring Revenues Fall
Colocation recurring revenues experienced a year-over-year increase of 5.7%, totaling $1.59 billion. The figure was higher than our estimate of $1.57 billion.
Interconnection recurring revenues came in at $407 million, which increased 8.8% from the prior-year quarter. The figure was higher than our estimate of $398.9 million.
Managed infrastructure recurring revenues increased year over year by $1 million to $117 million. However, it was only 0.3% lower than our estimate.
Other recurring revenues remained unchanged from the prior-year quarter, totaling $34 million. The figure was lower than our estimate of $35.1 million.
EQIX’s total recurring revenues grew 5.9% year over year to $2.14 billion in the second quarter of 2025. The figure was only 0.5% higher than our estimate. The uptick was driven by a rise in Americas, Europe, the Middle East and Africa (“EMEA”) and the Asia Pacific recurring revenues.
Non-recurring revenues decreased 16.3% year over year to $113 million. It was lower than our estimate of $122.9 million. The fall was mainly due to a decrease in Asia Pacific non-recurring revenues.
EQIX’s Non-Financial Metrics Rise
In the second quarter of 2025, EQIX’s worldwide-cabinet equivalent capacity rose by 4,200 to 376,000 on a quarter-over-quarter basis. The figure was higher than our estimate of 375,788.
Worldwide-cabinet billing experienced a sequential increase of 1,200, totaling 292,500. The figure was lower than our estimate of 294,375.
Worldwide-quarter-end utilization came in at 78%, remaining unchanged from the prior quarter. It was nearly a match to our estimate of 78.01%.
EQIX's Financial 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.
2025 Revised Guidance 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 prior 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 prior range of $4.471-$4.551 billion. Adjusted EBITDA margin is expected to be 49%, around a 230 basis point improvement over the previous year.
EQIX’s Zacks Rank
Equinix carries a Zacks Rank #4 (Sell) at present.
Healthpeak Properties, Inc. (DOC - Free Report) reported second-quarter FFO as adjusted per share of 46 cents, meeting the Zacks Consensus Estimate. The metric was 45 cents per share in the prior-year quarter.
Results reflected lower-than-expected revenues. Growth in total merger-combined same-store cash (adjusted) net operating income was witnessed across the portfolio. However, higher interest expenses affected DOC’s results to some extent.
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 Beat, Recurring Revenues Rise Y/Y, NFM Rises Q/Q
Key Takeaways
Equinix Inc. (EQIX - Free Report) reported second-quarter 2025 adjusted funds from operations (AFFO) per share of $9.91, outpacing the Zacks Consensus Estimate of $9.19. Similarly, total revenues of $2.26 billion surpassed the Zacks Consensus Estimate by just 0.03%.
Moreover, AFFO per share and the top line increased 7.5% and 4.5%, respectively, year over year.
Equinix, Inc. Price, Consensus and EPS Surprise
Equinix, Inc. price-consensus-eps-surprise-chart | Equinix, Inc. Quote
EQIX's Recurring Revenues Rise, Non-Recurring Revenues Fall
Colocation recurring revenues experienced a year-over-year increase of 5.7%, totaling $1.59 billion. The figure was higher than our estimate of $1.57 billion.
Interconnection recurring revenues came in at $407 million, which increased 8.8% from the prior-year quarter. The figure was higher than our estimate of $398.9 million.
Managed infrastructure recurring revenues increased year over year by $1 million to $117 million. However, it was only 0.3% lower than our estimate.
Other recurring revenues remained unchanged from the prior-year quarter, totaling $34 million. The figure was lower than our estimate of $35.1 million.
EQIX’s total recurring revenues grew 5.9% year over year to $2.14 billion in the second quarter of 2025. The figure was only 0.5% higher than our estimate. The uptick was driven by a rise in Americas, Europe, the Middle East and Africa (“EMEA”) and the Asia Pacific recurring revenues.
Non-recurring revenues decreased 16.3% year over year to $113 million. It was lower than our estimate of $122.9 million. The fall was mainly due to a decrease in Asia Pacific non-recurring revenues.
EQIX’s Non-Financial Metrics Rise
In the second quarter of 2025, EQIX’s worldwide-cabinet equivalent capacity rose by 4,200 to 376,000 on a quarter-over-quarter basis. The figure was higher than our estimate of 375,788.
Worldwide-cabinet billing experienced a sequential increase of 1,200, totaling 292,500. The figure was lower than our estimate of 294,375.
Worldwide-quarter-end utilization came in at 78%, remaining unchanged from the prior quarter. It was nearly a match to our estimate of 78.01%.
EQIX's Financial 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.
2025 Revised Guidance 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 prior 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 prior range of $4.471-$4.551 billion. Adjusted EBITDA margin is expected to be 49%, around a 230 basis point 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.
Performance of Other REITs
Healthpeak Properties, Inc. (DOC - Free Report) reported second-quarter FFO as adjusted per share of 46 cents, meeting the Zacks Consensus Estimate. The metric was 45 cents per share in the prior-year quarter.
Results reflected lower-than-expected revenues. Growth in total merger-combined same-store cash (adjusted) net operating income was witnessed across the portfolio. However, higher interest expenses affected DOC’s results to some extent.
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.