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Equinix Lifts 2026 and 2029 Targets After Strong Q2 but Flags Softer Q3 Range

Management says surging AI workloads and xScale hyperscale deals justify a big expansion in growth targets and capital spending.

Overview

  • Equinix reported stronger-than-expected second-quarter results with revenue of $2.63 billion, net income of $479 million, and FFO of $1.17 billion.
  • On July 29 the company raised full-year 2026 revenue guidance to $10.21 billion–$10.29 billion and boosted adjusted FFO guidance to $42.69–$43.29 per share.
  • Equinix upgraded its 2027–2029 outlook to 10–13% annual revenue growth and 9–12% annual AFFO-per-share growth while increasing planned annual capex substantially.
  • Management credited AI-driven demand and xScale hyperscale deals for the upside, reporting record-like bookings of $424 million annualized and about $110 million in presales.
  • The company pulled forward more than 7,000 retail cabinets into the second half of 2026 and expanded a pipeline of 52 projects across 33 markets, but a Q3 revenue range midpoint below Street estimates caused the stock to slip about 3%.