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Results reflect higher recurring revenues year over year, led by strong demand for digital infrastructure and services. The company added 7,100 total interconnections, driven by cloud and enterprise connectivity in the quarter, thereby reaching more than 499,000 total interconnections. The company also raised its AFFO per share outlook for 2025.
Total quarterly revenues of $2.32 billion missed the Zacks Consensus Estimate by just 0.32%. However, the top line increased 5.2% year over year.
Per Adaire Fox-Martin, CEO and president of Equinix, “We continue to serve the significant and sustained demand for our differentiated infrastructure and interconnection capabilities in support of our customers’ AI and non-AI workloads. We were built and continue to build for this opportunity, increasing our topline revenue growth, improving profitability and scaling our metro-proximate capacity.”
EQIX’s Q3 in Detail
Recurring revenues were $2.22 billion, up 7.6% from the year-ago quarter. Our projection for the metric was $2.16 billion. Non-recurring revenues decreased 28.9% to $101 million.
Revenues from the Americas and the EMEA rose 8% and 5.5% year over year to $1.04 billion and $784 million, respectively. However, the Asia Pacific decreased marginally to $497 million.
Adjusted EBITDA came in at $1.15 billion, up 9.5% year over year. We projected the metric at $1.14 billion. The adjusted EBITDA margin was reported at 50%.
AFFO rose 11.4% from the year-ago period to $965 million.
EQIX spent $64 million on recurring capital expenditure in the third quarter, down 7.2% on a year-over-year basis. Non-recurring capital expenditure was $1.07 billion, up 65.3% year over year.
EQIX’s Balance Sheet Position
Equinix had $6.9 billion of available liquidity as of Sept. 30, 2025. This comprised cash, cash equivalents, short-term investments and its undrawn revolver. It excludes restricted cash.
As of Sept. 30, 2025, total gross debt was around $17.3 billion. Its net leverage ratio was 3.6, and the weighted average maturity was 6.9 years as of Sept. 30, 2025.
EQIX’s Dividend
Concurrent with its third-quarter earnings, Equinix’s board of directors announced a quarterly cash dividend of $4.69 per share. The dividend will be paid out on Dec. 17 to its shareholders on record as of Nov. 19, 2025.
Q4 & 2025 Guidance Revision by EQIX
For the fourth quarter of 2025, Equinix projects revenues between $2.411 billion and $2.531 billion, an increase of 7% at the midpoint over the previous quarter. The adjusted EBITDA is expected to be in the range of $1.187-$1.267 billion.
The company has raised its 2025 AFFO per share guidance, which is now expected to be between $37.95 and $38.77 compared to the previous range of $37.67 and $38.48. This suggests an 8-11% increase from the previous year. The Zacks Consensus Estimate of $38.19 is within the guided range.
For 2025, Equinix has revised its guidance for total revenues in the band of $9.208-$9.328 billion compared to the prior range of $9.233-$9.333 billion. This indicates growth of 5-7% from 2024. Management predicts adjusted EBITDA in the range of $4.531-$4.611 billion compared to the previous range of $4.517-$4.597 billion. The adjusted EBITDA margin is expected to be 49%, suggesting an improvement of around 250 basis points over the previous year.
Digital Realty Trust (DLR - Free Report) reported third-quarter 2025 core FFO per share of $1.89, beating the Zacks Consensus Estimate of $1.78. FFO also increased 13.2% 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.
Healthpeak Properties, Inc. (DOC - Free Report) reported third-quarter 2025 FFO as adjusted per share of 46 cents, beating the Zacks Consensus Estimate of 45 cents. The figure compared favorably with the prior-year quarter’s 45 cents per share.
DOC’s result reflected better-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 the results to some extent.
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 Q3 AFFO Beats Estimates, Recurring Revenues Rise Y/Y
Key Takeaways
Equinix Inc.’s (EQIX - Free Report) third-quarter 2025 adjusted funds from operations (AFFO) per share of $9.83 beat the Zacks Consensus Estimate of $9.26. Moreover, the figure improved 8.6% from the prior-year quarter.
Results reflect higher recurring revenues year over year, led by strong demand for digital infrastructure and services. The company added 7,100 total interconnections, driven by cloud and enterprise connectivity in the quarter, thereby reaching more than 499,000 total interconnections. The company also raised its AFFO per share outlook for 2025.
Total quarterly revenues of $2.32 billion missed the Zacks Consensus Estimate by just 0.32%. However, the top line increased 5.2% year over year.
Per Adaire Fox-Martin, CEO and president of Equinix, “We continue to serve the significant and sustained demand for our differentiated infrastructure and interconnection capabilities in support of our customers’ AI and non-AI workloads. We were built and continue to build for this opportunity, increasing our topline revenue growth, improving profitability and scaling our metro-proximate capacity.”
EQIX’s Q3 in Detail
Recurring revenues were $2.22 billion, up 7.6% from the year-ago quarter. Our projection for the metric was $2.16 billion. Non-recurring revenues decreased 28.9% to $101 million.
Revenues from the Americas and the EMEA rose 8% and 5.5% year over year to $1.04 billion and $784 million, respectively. However, the Asia Pacific decreased marginally to $497 million.
Adjusted EBITDA came in at $1.15 billion, up 9.5% year over year. We projected the metric at $1.14 billion. The adjusted EBITDA margin was reported at 50%.
AFFO rose 11.4% from the year-ago period to $965 million.
EQIX spent $64 million on recurring capital expenditure in the third quarter, down 7.2% on a year-over-year basis. Non-recurring capital expenditure was $1.07 billion, up 65.3% year over year.
EQIX’s Balance Sheet Position
Equinix had $6.9 billion of available liquidity as of Sept. 30, 2025. This comprised cash, cash equivalents, short-term investments and its undrawn revolver. It excludes restricted cash.
As of Sept. 30, 2025, total gross debt was around $17.3 billion. Its net leverage ratio was 3.6, and the weighted average maturity was 6.9 years as of Sept. 30, 2025.
EQIX’s Dividend
Concurrent with its third-quarter earnings, Equinix’s board of directors announced a quarterly cash dividend of $4.69 per share. The dividend will be paid out on Dec. 17 to its shareholders on record as of Nov. 19, 2025.
Q4 & 2025 Guidance Revision by EQIX
For the fourth quarter of 2025, Equinix projects revenues between $2.411 billion and $2.531 billion, an increase of 7% at the midpoint over the previous quarter. The adjusted EBITDA is expected to be in the range of $1.187-$1.267 billion.
The company has raised its 2025 AFFO per share guidance, which is now expected to be between $37.95 and $38.77 compared to the previous range of $37.67 and $38.48. This suggests an 8-11% increase from the previous year. The Zacks Consensus Estimate of $38.19 is within the guided range.
For 2025, Equinix has revised its guidance for total revenues in the band of $9.208-$9.328 billion compared to the prior range of $9.233-$9.333 billion. This indicates growth of 5-7% from 2024. Management predicts adjusted EBITDA in the range of $4.531-$4.611 billion compared to the previous range of $4.517-$4.597 billion. The adjusted EBITDA margin is expected to be 49%, suggesting an improvement of around 250 basis points over the previous year.
EQIX’s Zacks Rank
Equinix carries a Zacks Rank #3 (Hold) 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
Digital Realty Trust (DLR - Free Report) reported third-quarter 2025 core FFO per share of $1.89, beating the Zacks Consensus Estimate of $1.78. FFO also increased 13.2% 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.
Healthpeak Properties, Inc. (DOC - Free Report) reported third-quarter 2025 FFO as adjusted per share of 46 cents, beating the Zacks Consensus Estimate of 45 cents. The figure compared favorably with the prior-year quarter’s 45 cents per share.
DOC’s result reflected better-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 the results to some extent.
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.