10-Q · April 29, 2026
Equinix reported Q1 2026 revenue of $2.444 billion, missing estimates slightly but exceeding EPS expectations with a reported EPS of $10.79, a 9.5% surprise. The company maintains a strong gross margin at 50.5% and…
Earnings analysis · 10-Q
EQIX earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
Equinix delivered strong year-over-year growth, with Q3 revenue of $2.571 billion, approximately $600 million of operating income, and $1.321 billion of adjusted EBITDA. Bookings accelerated and all three regions grew,…
Read full summary
Equinix delivered strong year-over-year growth, with Q3 revenue of $2.571 billion, approximately $600 million of operating income, and $1.321 billion of adjusted EBITDA. Bookings accelerated and all three regions grew, supporting management’s raised FY 2026 revenue outlook of $10.325-$10.365 billion. However, the outlook is accompanied by elevated leverage, $6.4 billion of near-term capital expenditure commitments, rising interest and power costs, and execution risks tied to AI capacity, supply chains, and permitting.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Double-digit revenue growth
Revenue was $2.571 billion, up 11% or $255 million year over year, but down approximately 2.2% from $2.63 billion in Q2 2026. Recurring revenue represented 95% of total revenue, at $2.442 billion.
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Operating leverage improved year over year
Income from operations increased $126 million, or 27%, year over year to approximately $600 million, implying a 23.3% operating margin versus 20.4% in Q3 2025 and 25.4% in Q2 2026.
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Bookings accelerated
Annualized Gross Bookings increased 35% year over year to $533 million in Q3 and increased 23% to $1.3 billion for the first nine months, reflecting stronger customer demand and bookings conversion.
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Broad-based regional growth
All regions grew year over year: Americas revenue increased 11% to $1.148 billion, EMEA increased 12% to $878 million, and Asia-Pacific increased 10% to $545 million.
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Adjusted EBITDA expanded
Adjusted EBITDA increased 15% year over year to $1.321 billion, led by EMEA growth of 19% to $456 million and Americas growth of 15% to $560 million.
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Operating cash generation improved
Operating cash flow increased $260 million year over year to $3.027 billion for the first nine months of 2026, compared with $2.767 billion in the prior-year period.
What to watch
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Debt and interest burden increased
Total indebtedness was approximately $25.2 billion at September 30, 2026, while interest expense increased to $163 million in Q3 from $128 million year over year. Senior-note principal totaled approximately $22.8 billion and related interest commitments were approximately $5.4 billion.
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Heavy expansion commitments
Capital intensity remains substantial: unaccrued capital expenditure commitments were approximately $6.4 billion, with the majority payable within the next 12 months. Investing cash use increased by $1.102 billion year over year to $4.876 billion for the first nine months.
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Power availability and cost risk
Power and utility costs are pressuring margins: nine-month Americas utilities expense increased $43 million, while EMEA and Asia-Pacific utilities expense increased $15 million and $16 million, respectively. Management expects power consumption to accelerate with AI adoption.
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AI capacity and supply constraints
The filing emphasizes AI-related supply constraints: management is anticipating chip shortages relative to prior years, while cabinet utilization was approximately 78% as of September 30, 2026. Power limitations could constrain growth even where physical cabinet capacity remains available.
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Geopolitical and construction delays
Geopolitical and logistics risks were expanded to include the war in Iran, disruptions around the Strait of Hormuz, and continuing Red Sea shipping disruption. The filing states that alternative shipping routes can add transit time and fuel costs and that permitting delays are currently occurring in most metros.
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Transaction-related earnings effects
The atNorth transaction generated $54 million of net other income in Q3, while the company recorded $20 million of transaction costs. These items make period earnings less representative of recurring operating performance.
Management's outlook
FY 2026 revenue guidance was raised to $10.325-$10.365 billion from $10.205-$10.285 billion; Q4 revenue guidance is $2.684-$2.724 billion. The revised outlook includes an $84 million underlying adjustment and $16 million from the atNorth joint venture.
Earlier filings 4
10-Q · July 30, 2025
Equinix reported Q2 revenue of $2,256 million (vs. $2,159M in Q2 2024) and diluted EPS of $3.75 (vs. $3.16 in Q2 2024). Gross margin expanded to ~52.0% and operating margin to 21.9% year-over-year, while the company…
10-K · February 12, 2025
Equinix reports continued platform expansion and recurring revenue strength with total 2024 revenues of $8,748 million, up $560 million or 7% year-over-year, driven by recurring revenues of $8,184 million (94% of…
10-Q · May 8, 2024
Equinix reported quarter revenue of $2,127 million (up from $1,998 million a year ago) but operating income and diluted EPS declined versus the prior-year quarter. Operating cash flow was solid at $598 million but heavy…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.