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Equinix Stock Rises 28% in 3 Months: Will the Trend Continue?
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Key Takeaways
Equinix shares jumped 28% in 3 months, outperforming a 2.3% decline in the real estate market.
EQIX benefits from strong data demand, with recurring revenues above 90% and a steady growth outlook.
Equinix expanded to 280 IBX centers and has 52 projects underway, backed by solid liquidity.
Shares of Equinix, Inc. (EQIX - Free Report) have gained 28% in the past three months against the real estate market’s fall of 2.3%.
The robust demand for data center infrastructure amid enterprises’ growing reliance on technology and acceleration in digital transformation strategies has aided this Zacks Rank #2 (Buy) stock in recent years. Its strategic expansion efforts, backed by a healthy balance sheet, have enabled it to capitalize on favorable industry trends so far.
Image Source: Zacks Investment Research
Let us now decipher the possible factors behind the surge in the stock price.
Equinix continues to prove itself to be a pivotal player in the global digital infrastructure landscape. Its geographically diverse portfolio of IBX data centers is expected to benefit from enterprises’ increasing dependence on technology and the expedited implementation of digital transformation strategies.
Equinix is likely to benefit from favorable operating leverage. In the past three years, the company’s recurring revenues have comprised more than 90% of its total revenues. In the fourth quarter of 2025, monthly recurring revenues grew 10%, and for the full year, increased 8% on a normalized and constant currency basis. For 2026, management expects monthly recurring revenues to grow between 8% and 10%. Given the growing demand for data exchanges across the world, Equinix is well-poised to grow its revenue base. Management expects total revenues to grow between 9% and 10% in 2026.
Equinix continues focusing on acquisitions and developments to expand data center capacity in key markets and strengthen its competitive positioning and global reach. The company’s recent IBX data center openings and acquisitions, as well as xScale data center investments, have increased its total number of IBX data center facilities to 280, as of Dec. 31, 2025. Moreover, Equinix has an encouraging development pipeline. As of Dec 31, 2025, it had 52 major projects underway across 35 markets in 24 countries, including nine xScale builds.
Equinix focuses on enjoying financial flexibility, and as of Dec. 31, 2025, the company’s liquidity totaled $7.2 billion. It enjoyed investment-grade credit ratings of Baa1 from Moody’s, a BBB+ rating from S&P Global Ratings and a BBB+ rating from Fitch Ratings as of the end of the fourth quarter of 2025, rendering it favorable access to the debt market.
Moreover, solid dividend payouts are a massive attraction for REIT investors, and Equinix has remained committed to that. The company has increased its dividend five times in the last five years, and its five-year annualized dividend growth rate is 13.56%. Given a robust operating platform and a healthy financial position, EQIX’s dividend distribution is expected to be sustainable over the long run.
With the factors mentioned above, the positive trend in the stock is expected to continue in the near term.
The Zacks Consensus Estimate for LAND’s 2026 FFO per share is pinned at 43 cents. This indicates year-over-year growth of 10.3% for 2026.
The Zacks Consensus Estimate for PDM’s 2026 FFO per share is pegged at $1.49. This implies year-over-year growth of 5.7% for 2026.
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 Stock Rises 28% in 3 Months: Will the Trend Continue?
Key Takeaways
Shares of Equinix, Inc. (EQIX - Free Report) have gained 28% in the past three months against the real estate market’s fall of 2.3%.
The robust demand for data center infrastructure amid enterprises’ growing reliance on technology and acceleration in digital transformation strategies has aided this Zacks Rank #2 (Buy) stock in recent years. Its strategic expansion efforts, backed by a healthy balance sheet, have enabled it to capitalize on favorable industry trends so far.
Image Source: Zacks Investment Research
Let us now decipher the possible factors behind the surge in the stock price.
Equinix continues to prove itself to be a pivotal player in the global digital infrastructure landscape. Its geographically diverse portfolio of IBX data centers is expected to benefit from enterprises’ increasing dependence on technology and the expedited implementation of digital transformation strategies.
Equinix is likely to benefit from favorable operating leverage. In the past three years, the company’s recurring revenues have comprised more than 90% of its total revenues. In the fourth quarter of 2025, monthly recurring revenues grew 10%, and for the full year, increased 8% on a normalized and constant currency basis. For 2026, management expects monthly recurring revenues to grow between 8% and 10%. Given the growing demand for data exchanges across the world, Equinix is well-poised to grow its revenue base. Management expects total revenues to grow between 9% and 10% in 2026.
Equinix continues focusing on acquisitions and developments to expand data center capacity in key markets and strengthen its competitive positioning and global reach. The company’s recent IBX data center openings and acquisitions, as well as xScale data center investments, have increased its total number of IBX data center facilities to 280, as of Dec. 31, 2025. Moreover, Equinix has an encouraging development pipeline. As of Dec 31, 2025, it had 52 major projects underway across 35 markets in 24 countries, including nine xScale builds.
Equinix focuses on enjoying financial flexibility, and as of Dec. 31, 2025, the company’s liquidity totaled $7.2 billion. It enjoyed investment-grade credit ratings of Baa1 from Moody’s, a BBB+ rating from S&P Global Ratings and a BBB+ rating from Fitch Ratings as of the end of the fourth quarter of 2025, rendering it favorable access to the debt market.
Moreover, solid dividend payouts are a massive attraction for REIT investors, and Equinix has remained committed to that. The company has increased its dividend five times in the last five years, and its five-year annualized dividend growth rate is 13.56%. Given a robust operating platform and a healthy financial position, EQIX’s dividend distribution is expected to be sustainable over the long run.
With the factors mentioned above, the positive trend in the stock is expected to continue in the near term.
Other Stocks to Consider
Some other top-ranked stocks from the broader REIT sector are Gladstone Land (LAND - Free Report) and Piedmont Realty Trust, Inc. (PDM - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for LAND’s 2026 FFO per share is pinned at 43 cents. This indicates year-over-year growth of 10.3% for 2026.
The Zacks Consensus Estimate for PDM’s 2026 FFO per share is pegged at $1.49. This implies year-over-year growth of 5.7% for 2026.
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.