Equinix Q2 revenue rises 16%, beats estimates; lifts 2026 outlook

Overview

• US data center operator's Q2 revenue rose 16% yr/yr, beating analyst expectations

• Net income for Q2 increased 30% yr/yr, beating analyst estimates

• Company raised full-year 2026 guidance on stronger demand and bookings

Outlook

• Equinix raises 2026 revenue guidance to $10.205-$10.285 bln from $10.144-$10.244 bln

• Company expects Q3 2026 revenue between $2.525 bln and $2.575 bln

• Equinix lifts long-term annual revenue growth outlook to 10-13% for 2027-2029, up from 7-10%

Result Drivers

• RECURRING REVENUE GROWTH - Monthly recurring revenue grew 11% yr/yr, reflecting broad-based demand

• GROSS BOOKINGS AND BACKLOG - Annualized gross bookings grew 23% yr/yr, contributing to a record backlog

• XSCALE FEES - One-time xScale fees contributed to revenue and profit growth

Company press release: ID:nPn3vj2Wha

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 28 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy"

• Wall Street's median 12-month price target for Equinix Inc is $1,210.00, about 16.9% above its July 28 closing price of $1,034.86

• The stock recently traded at 54 times the next 12-month earnings vs. a P/E of 57 three months ago

Reuters Recommended Reads

• July 28 - South Africa tribunal approves Equinix data centres despite activist objections

• July 29 - CBRE raises profit forecast as data center expansion boosts real estate services demand

• July 29 - Ireland's Johnson Controls Q3 sales beat on data center demand; raises outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)