Equinix, Inc.

In Q2, recurring revenues increased 11% year over year, total revenues increased 16% year over year, adjusted EBITDA margin was 53% (up 300 basis points year over year), and AFFO per share increased 18% year over year, all on a normalized and constant-currency basis. The company also said it closed 134 megawatts of xScale leases, including Hampton, which contributed approximately $120 million in nonrecurring fees. Net interconnections increased by a record 9.7 thousand, and net cabinet billings were 4.2 thousand. For 2026, Equinix raised total revenue growth guidance to 11% to 12%, AFFO per share growth to 10% to 12%, and adjusted EBITDA margin to approximately 51%; 3Q guidance was for MRR growth of 9% to 11%, total revenue growth of 10% to 12%, and adjusted EBITDA margin of 51%. The company now expects 2026 CapEx of $5 billion to $6 billion, excluding real estate acquisition and xScale, and said 2027-2029 CapEx should be $5 billion to $7 billion annually.

Adaire Rita Fox-Martin framed the quarter as evidence that the AI infrastructure cycle is accelerating and playing directly to Equinix’s strengths in neutral, interconnected, sovereign infrastructure. She emphasized that demand is broad-based across enterprise modernization and AI-native workloads, with most demand already coming from existing Equinix customers. Her tone was notably confident and expansive, highlighting the company’s ecosystem density, product roadmap, and willingness to deploy more capital to capture demand.

Olivier C. Leonetti focused on the financial upside from strong execution, citing 11% recurring revenue growth, 16% total revenue growth, 53% adjusted EBITDA margin, and 18% AFFO per share growth. He said Q2 capital expenditures were about $1.6 billion, with about 90% invested in capacity expansion, and that liquidity was about $7.7 billion with net leverage at 3.6x annualized adjusted EBITDA. He also said the business should keep funding growth through retained cash flow and debt, expects leverage to rise by about a turn by the end of the planning period, and sees the blended cost of capital rising by about 150 basis points; he reiterated that the company wants to preserve investment-grade ratings.

Analysts pressed management on why CapEx and long-term guidance were being raised so sharply, and management said the AI infrastructure cycle has accelerated, pricing remains firm, and execution is better across bookings, margins, cash flow, and capacity delivery. Questions also focused on interconnection demand, pricing power, and whether growth will come more from MRR per cabinet or from more cabinets; management said deal density is increasing, pricing is still firm, and interconnection revenue is benefiting as customers land on the platform. Other questions covered power and supply-chain readiness, with management saying it has 3 gigawatts of land under control, only announces projects after internal gating on power and permits, and feels comfortable because of supplier relationships, pre-purchases, and a fungible design footprint.