A month has gone by since the last earnings report for Equinix (EQIX Quick QuoteEQIX - Free Report) . Shares have lost about 1.2% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Equinix due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Equinix, Inc. before we dive into how investors and analysts have reacted as of late.

Equinix Q1 AFFO & Revenues Miss Estimates on Higher Expenses

Equinix reported first-quarter 2026 AFFO per share of $10.79, up 11.6% from $9.67 a year ago but missing the Zacks Consensus Estimate of $10.89 by 0.9%.

Total revenues were $2.44 billion, up 9.8% year over year, but below the consensus mark of $2.51 billion by 2.6%. Results reflected solid demand for digital infrastructure, even as higher costs weighed modestly on consensus comparisons. Annualized gross bookings of $378 million stood out in the quarter.

Equinix Recurring Revenues Rise Across Regions

Recurring revenues were $2.33 billion in the first quarter of 2026, up from $2.09 billion a year ago, while non-recurring revenues were $113 million compared with $138 million in the prior-year quarter.

By geography, recurring revenues from the Americas, the EMEA and Asia Pacific rose 12.4%, 10.2% and 12.7%, respectively, year over year. Although non-recurring revenues from the EMEA increased 40.7%, they decreased 35.7% and 26.8% in the Americas and Asia Pacific, respectively.

Equinix Logs Record Bookings and Deepens AI Momentum

Equinix delivered $378 million of annualized gross bookings in the quarter and cited the largest first-quarter bookings in the company’s history, leading to a record backlog. The company also reported record annualized presales of roughly $140 million, underscoring continued customer commitments even as deployments phase in over time.

Customer activity remained broad-based. Management noted that the company completed more than 3,800 transactions with over 3,100 unique customers and processed more than 20,000 self-service orders, indicating sustained engagement across its platform. About 60% of the company’s largest deals were described as AI-related, supporting high-density AI infrastructure demand.

Equinix Expands Operating Profit Despite High Expenses

Equinix generated operating income of $577 million in the first quarter of 2026, up from $458 million in the year-ago quarter, reflecting stronger underlying operating performance.

The company posted adjusted EBITDA of $1.25 billion, up 16.7% year over year, while adjusted EBITDA margin came in at 51%, marking a record margin level. The cost structure remained sizable, with cost of revenues rising 9.4% to $1.19 billion, sales and marketing expense increasing 5.2% to $241 million and general and administrative expense growing $4 million to $444 million.

Equinix Maintains Liquidity While Funding Heavy Investment

Equinix ended the quarter with a sizable liquidity cushion and continued to invest for growth. The company cited roughly $7.1 billion of available liquidity and about $20 billion of total gross debt, with net leverage of 3.8x, reflecting a balance sheet positioned to support expansion while managing funding costs.

Capital intensity remained high. Total capital expenditures were $1.26 billion in the quarter, including $32 million of recurring capital expenditures and $1.22 billion of non-recurring spend.

Equinix Raises 2026 Outlook After Strong Q1 Execution

Equinix raised its full-year 2026 outlook across key metrics following the quarter. The company now expects full-year revenues of $10.144-$10.244 billion, compared to the prior guided range of $10,123-10,223. Management predicts an adjusted EBITDA of $5.165-$5.245 billion and an adjusted EBITDA margin of about 51%.

AFFO is projected at $4.198-$4.278 billion, with AFFO per share expected at $42.31-$43.11, up from $41.93-42.74 guided earlier.

For second-quarter 2026, management guided revenues to $2.571-$2.611 billion, implying a 9-10% increase over the prior quarter. Adjusted EBITDA is expected in the range of $1.349-$1.389 billion, with around a 52-53% margin.

How Have Estimates Been Moving Since Then?

Estimates review followed a upward path over the past two months.

VGM Scores

At this time, Equinix has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Equinix has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.