Equinix (EQIX) Up 1.4% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Equinix (EQIX). Shares have added about 1.4% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Equinix due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Equinix Q4 AFFO & Revenues Miss Estimates, Non-Recurring Revenues Fall Y/Y

Equinix’s fourth-quarter 2025 adjusted funds from operations (AFFO) per share of $8.91 missed the Zacks Consensus Estimate of $9.07. The figure improved 12.5% from the prior-year quarter.

Results reflected higher expenses, adversely impacting the performance. Recurring revenues increased year over year, led by strong demand for digital infrastructure and services. The company surpassed more than 500,000 total interconnections. Equinix hiked its dividend payout.

Total quarterly revenues of $2.42 billion missed the Zacks Consensus Estimate of $2.47 billion. The top line increased 7% year over year.

Q4 in Detail

Recurring revenues were $2.29 billion, up 9.7% from the year-ago quarter. Non-recurring revenues decreased 25.9% to $126 million.

Revenues from the Americas and the EMEA rose 7.2% and 7.7% year over year to $1.07 billion and $836 million, respectively. The same for the Asia Pacific increased 5.6% to $513 million.

Adjusted EBITDA came in at $1.19 billion, up 16.2% year over year. The adjusted EBITDA margin was reported at 49%.

AFFO rose 13.9% from the year-ago period to $877 million.

Equinix spent $139 million on recurring capital expenditure in the fourth quarter, up 20.9% on a year-over-year basis. Non-recurring capital expenditure was $1.30 billion, up 48.7% year over year.

Cash sales and marketing expenses surged 17.6% to $160 million. Cash general and administrative expenses flared up 6.4% to $301 million.

Balance Sheet Position

Equinix had $7.2 billion of available liquidity as of Dec. 31, 2025. This comprised $3.2 billion of cash, cash equivalents, short-term investments and a $4 billion undrawn revolver. It excludes restricted cash.

As of Dec. 31, 2025, total gross debt was around $19 billion. Its net leverage ratio was 3.8, and the weighted average maturity was 6.5 years as of Dec. 31, 2025.

2026 Guidance

For the first quarter of 2026, Equinix projects revenues between $2.496 billion and $2.536 billion, implying around a 3-5% increase over the prior quarter. Adjusted EBITDA is expected in the range of $1.283- $1.323 billion.

For the current year, AFFO per share is estimated between $41.93 and $42.74. This suggests an increase of around 9-11.5% from the previous year.

For 2026, Equinix estimates generating total revenues in the band of $10.123-$10.223 billion, indicating growth of 10-11% from 2025 on an as-reported basis. Management predicts an adjusted EBITDA of $5.141-$5.221 billion and an adjusted EBITDA margin of 51%.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

The consensus estimate has shifted 5.35% due to these changes.

VGM Scores

At this time, Equinix has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a grade of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Equinix has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Equinix belongs to the Zacks REIT and Equity Trust - Retail industry. Another stock from the same industry, Regency Centers (REG), has gained 1.2% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Regency Centers reported revenues of $404.19 million in the last reported quarter, representing a year-over-year change of +8.5%. EPS of $1.09 for the same period compares with $1.09 a year ago.

Regency Centers is expected to post earnings of $1.21 per share for the current quarter, representing a year-over-year change of +5.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.6%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Regency Centers. Also, the stock has a VGM Score of F.

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Equinix, Inc. (EQIX): Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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