Equinix Raises 2026 Outlook as Q3 Bookings Reach Record

Equinix raised its full-year 2026 outlook after third-quarter revenue increased 11% and annualized gross bookings reached a record $533 million, up 35% from a year earlier. The data center operator said broad-based customer demand, firmer pricing and increased capacity delivery supported the quarter, while it now expects to deliver about 40% more cabinets in 2026 than anticipated at the beginning of the year.

Revenue rose to $2.57 billion from $2.32 billion in the third quarter of 2025. On a normalized and constant-currency basis, revenue grew 12%, while monthly recurring revenue increased 11%. Adjusted EBITDA advanced 15% as reported to $1.32 billion, with a 51% margin, and grew 14% on a normalized and constant-currency basis.

Adjusted funds from operations, or AFFO, increased 20% to $1.16 billion. Diluted AFFO per share was $11.64, compared with $9.83 a year earlier. Normalized and constant-currency AFFO growth was 14%.

Revenue, adjusted EBITDA and AFFO declined sequentially, partly reflecting non-recurring xScale leasing fees that benefited the second quarter. Excluding those fees, normalized and constant-currency sequential growth was 3% for revenue, 4% for adjusted EBITDA and 3% for AFFO.

Record bookings and higher cabinet yields

Annualized gross bookings exceeded $500 million for the first time, rising 35% year over year to $533 million. Equinix completed more than 25,000 transactions involving over 3,200 customers during the quarter.

The company added 5,700 billed cabinets from the previous quarter, bringing the worldwide total to 313,300. Monthly recurring revenue per cabinet increased to $2,574, which Equinix attributed to higher power densities and firm pricing. Worldwide utilization was unchanged sequentially at 78%, while utilization at stabilized facilities rose to 83% from 82% a year earlier.

Equinix also added 6,900 net interconnections, including 5,800 physical cross-connects and 1,100 virtual connections, lifting the total to 529,600. Monthly recurring revenue churn declined to 1.7% from 2.3% in the year-earlier period.

Stabilized data centers generated $1.94 billion of quarterly revenue, up 7% year over year, with a 71% cash gross profit margin. The company said contractual price increases, interconnection growth and rising power densities contributed to the performance. Expansion properties produced $549 million of revenue, up 24%, and a 69% cash gross margin.

Growth across all three regions

Americas revenue increased 11% as reported to $1.15 billion and 12% on a normalized and constant-currency basis. Adjusted EBITDA rose 15% to $560 million, representing a 49% margin. The region’s sequential results were affected by the xScale leasing fees recorded in the second quarter.

Europe, the Middle East and Africa revenue grew 12% to $878 million, while adjusted EBITDA increased 19% to $456 million. The regional adjusted EBITDA margin reached 52%, compared with 49% a year earlier.

Asia-Pacific revenue advanced 10% to $545 million and grew 12% on a normalized and constant-currency basis. Adjusted EBITDA increased 11% to $305 million, with a 56% margin.

Full-year outlook raised

Equinix now expects 2026 revenue of $10.33 billion to $10.37 billion, representing normalized growth of about 12%. The range is $100 million above the prior outlook of $10.21 billion to $10.29 billion, including an $84 million underlying increase and a $16 million foreign-exchange benefit.

Full-year adjusted EBITDA is projected at $5.29 billion to $5.33 billion, with a margin of about 51%. That compares with the previous range of $5.21 billion to $5.27 billion. The $70 million adjustment comprises a $59 million underlying increase and an $11 million currency benefit.

AFFO guidance increased by $90 million to between $4.34 billion and $4.38 billion. Diluted AFFO per share is expected to be $43.71 to $44.11, implying normalized and constant-currency growth of 11% to 12%, compared with the prior 10% to 12% range. The AFFO revision includes the effects of adjusted EBITDA, foreign exchange and the atNorth joint venture.

For the fourth quarter, Equinix expects revenue of $2.68 billion to $2.72 billion, up 12% to 13% on a normalized basis. Adjusted EBITDA is projected at $1.33 billion to $1.37 billion, with a margin of 49% to 50%.

Capacity investment and funding

Equinix expects to deliver a record 13,450 sellable IBX cabinet equivalents in the fourth quarter. Its announced retail expansion program comprises 48 projects across 32 markets and 20 countries, with more than 35,500 cabinet additions planned from the fourth quarter of 2026 through 2027. Major retail project openings include Bogota, Dubai, Frankfurt and Miami.

The company forecasts $4.71 billion to $5.69 billion of full-year non-recurring capital expenditures, excluding xScale and real estate acquisitions. Recurring capital expenditures are expected to be $290 million to $310 million, or about 3% of revenue.

Equinix reported $9.1 billion of available liquidity, a 4.1-times net leverage ratio and approximately $25 billion of gross debt. During the quarter, it issued $3 billion of U.S. dollar notes across maturities ranging from 2029 to 2036 and refinanced its credit facility with a new $5.5 billion facility maturing in July 2031. Its blended after-tax borrowing rate was 3.2%, with a weighted-average maturity of 6.1 years.

The company expects 2026 cash dividends of about $2.04 billion, or $20.64 per share, up 10% per share year over year. A fourth-quarter dividend of $5.16 per share is scheduled for payment on December 16, 2026.

Equinix cautioned that its outlook remains subject to foreign-exchange movements, inflation, volatile energy markets and higher power procurement costs. Other identified risks include constraints in securing land and power, construction and supply-chain challenges, competition, customer concentration, acquisition integration, financing availability, indebtedness, regulatory or litigation matters and risks associated with maintaining its REIT tax status.