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Equinix: Equinix's Strong Q4 2025 Earnings Driven by AI Workloads

Equinix's Q4 2025 financial performance was impressive, with revenues reaching $2,400,000,000, a 7% year-over-year increase, and adjusted EBITDA of $1,200,000,000, up 15% year-over-year. The company's Q4 AFFO was $877,000,000, a 13% year-over-year increase. However, the actual EPS came out at $2.69, missing estimates of $9.07. The company's strong bookings momentum was driven by AI workloads, with 60% of its largest deals in Q4 related to AI. The 'P/E Ratio' of 63.1 and 'EV/EBITDA' of 29.52 indicate a premium valuation, suggesting that the market has high expectations for the company's future growth.

EQIX

USD 957.87

10.41%

A-Score: 4.8/10

Publication date: February 11, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Q4 Annualized Gross Bookings: $1.6B (+27% YoY), with Q4 bookings of $474M (+42% YoY).
  • Monthly Recurring Revenue Growth: 10% in Q4 and 8% for 2025 (normalized/constant currency).
  • AI-Driven Deals: 60% of largest Q4 transactions attributed to AI workloads, with non-cloud/IT firms leading deployments.
  • 2026 Financial Outlook: Revenue growth of 9–10%, EBITDA margin improvement to 51% (+200 bps), and AFFO growth of 9–11%.

Bookings Growth and AI Adoption

The company's bookings growth has been strong, with Q4 seeing significant growth, and a robust pipeline going into Q1. Management attributes this to its investments in capacity, particularly in constrained markets like Northern Virginia and Frankfurt. The increasing adoption of AI by enterprises is driving demand for Equinix's digital infrastructure and connectivity solutions, with nearly half of the AI-related deals coming from non-cloud and IT companies.

Operational Efficiency and Expansion

Equinix is focused on improving operational efficiency, targeting a 15% SG&A as a percent of revenue, down from 18-19%. The company plans to achieve this through process improvements, systems, and tooling, rather than just cutting costs. Equinix has 52 energized projects underway, aiming to build capacity in critical markets like Dallas and Washington, and has three gigawatts of developable, powered land under control, positioning it to meet customer demand for power.

Guidance and Valuation

The company's 2026 outlook is expected to be meaningfully ahead of expectations, with total revenues expected to grow between 9-10% and monthly recurring revenues expected to grow between 7-8%. The expected 'ROIC' of 4.88% and 'ROE' of 9.59% indicate a decent return on investment, but the 'Net Debt / EBITDA' ratio of 5.31 is a concern. Analysts estimate next year's revenue growth at 8.6%, which is slightly lower than the company's guidance. The current valuation multiples, including a 'P/S Ratio' of 9.24 and 'Dividend Yield' of 2.16%, need to be considered in the context of the company's growth prospects and industry trends.

Equinix's A-Score