Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 29, 2026 · Beat 5 of last 7 quarters
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Equinix's record bookings, raised guidance, and accelerated capacity expansion underscore the strength of the AI infrastructure buildout, particularly around enterprise inference and interconnection. The company's ability to secure power and deliver capacity in top metros positions it as a key enabler of distributed AI workloads, with implications for the broader data center supply chain.
Equinix delivered strong Q2 results with recurring revenue up 11% year-over-year and total revenue up 16%, including $120 million in non-recurring fees from closing 134 MW of xScale leases. Annualized gross bookings reached $424 million, up 23%, with total sales activity up over 30% including presales. The company added a record 9,700 net interconnections and 4,200 net cabinet billings, with churn at 1.8%. Adjusted EBITDA margin expanded 300 bps to 53%, and AFFO per share grew 18%. Management highlighted accelerating AI-driven demand, with 8 of the top 10 model providers and neo clouds running key networking workloads on Equinix, and announced new projects in Chicago, Istanbul, and Johor.
Management raised full-year 2026 guidance for the second consecutive quarter, now expecting revenue growth of 11% to 12% and AFFO per share growth of 10% to 12%, calling it the largest single guidance raise in company history. They also introduced a long-term outlook through 2029 with annual revenue growth of 10% to 13%, AFFO per share growth of 9% to 12%, and adjusted EBITDA margin reaching 53% or higher by 2029. To capture demand, they plan to invest $5 billion to $7 billion in annual CapEx from 2027 to 2029, with over 80% of expansion in their top 25 metros. They expect leverage to increase by about one turn and blended cost of capital to rise by about 150 basis points, while maintaining investment-grade ratings. Management expressed high conviction in durable demand, citing strong bookings, presales, backlog, and pricing, and noted that most of the remaining 2026 capacity is already committed.
“The AI driven infrastructure cycle continues to accelerate. And it is playing directly to our strengths. Demand for neutral, interconnected sovereign infrastructure is compounding across our business.”
on AI demand
“This is the largest single guidance raise in the history of our company. Reflecting broad based durable demand and strong execution across our business.”
on Guidance raise
“We are not speculative land developers or land purchasers. So all of those 3 gigawatts were either certain of our power and that it is contracted or that we have a high degree of confidence that power will be contracted, a very high degree of confidence that power will be contracted.”
on Power visibility
What are you seeing in the market that gives you confidence to raise CapEx this much, and has the growth mechanism changed from MRR per cabinet to cabinet growth?
Adaire cited acceleration in the AI infrastructure cycle, particularly inferencing, and better execution across the board. Olivier added that 80% of capital deployment will be in top 25 metros where demand exceeds supply and they have strong ecosystems.
Are you seeing changes in deal metrics or composition, such as market demand, deal sizes, and interconnect attach rates?
Adaire noted deal density is increasing as customers secure capacity for energy and compute needs. Interconnection added a record 9,700 net adds with revenue growing ~9%, and pricing remains firm despite larger footprints.
How are the three geographic regions progressing relative to the total portfolio, and should revenue growth accelerate over the next few years?
Adaire highlighted strong Americas growth (low-teens even excluding Hampton), an amazing quarter in APAC, and solid EMEA performance with constrained metros. Olivier said growth should be higher by 2029 as CapEx deploys, with AFFO following revenue.