Equinix Posts 4% Revenue Growth and Raised Guidance but Slides to 272nd in Market Activity

Equinix (EQIX) fell 1.74% on July 30, 2025, with a trading volume of $0.46 billion, ranking 272nd in market activity. The company reported Q2 2025 earnings, highlighting $2.256 billion in revenue (4% year-on-year growth), $494 million in operating income (22% margin), and $368 million in net income. Adjusted EBITDA reached $1.129 billion (50% margin), while AFFO hit $972 million. Guidance was raised across revenue ($9.233–9.333 billion), adjusted EBITDA ($4.517–4.597 billion), and AFFO ($3.703–3.783 billion).

Strong customer engagement, with 4,100 deals closed and $345 million in annualized gross bookings, underscored operational leverage. The CEO emphasized resilience in cloud and AI connectivity, driven by 6,200 new interconnections, bringing total connections to 492,000. Global projects in 34 metros, including 12 xScale developments, and a $28 million guidance increase due to foreign exchange benefits and operational performance, reinforced confidence in Equinix’s market position.

Despite robust earnings, the stock showed muted post-earnings trading, reflecting mixed market sentiment. While EPS of $9.91 exceeded estimates, revenue fell short of expectations. The company’s focus on capital efficiency, with $3.520–4.000 billion in non-recurring capital expenditures, and strategic acquisitions like Manila data centers, highlight its expansion in key markets. Forward-looking guidance anticipates $2.314–2.334 billion in Q3 revenue, with foreign currency benefits and margin stability supporting long-term growth.

The backtested strategy of buying the top 500 stocks by daily trading volume and holding for one day returned 166.71% from 2022 to the present, outperforming the benchmark’s 29.18%. This 137.53% excess return and 31.89% CAGR demonstrate the strategy’s effectiveness, with a Sharpe ratio of 1.14 and zero maximum drawdown, underscoring its risk-adjusted appeal.