Equinix, the global data centre operator that acquired MainOne in 2022, saw its shares fall about 3% on Wednesday even after reporting stronger-than-expected second-quarter results and raising both its full-year and long-term financial outlook.
Investors instead focused on the company’s forecast for the third quarter, which came in slightly below Wall Street expectations.
Equinix expects third-quarter revenue to range between $2.53 billion and $2.58 billion. The midpoint of that guidance falls just below analysts’ estimate of $2.58 billion, dampening investor expectations despite an otherwise strong quarter.
For the second quarter, the company reported revenue of $2.63 billion, a 16% increase from a year earlier and above analysts’ expectations. Net income rose 30% to $479 million, while earnings per share climbed 29% to $4.83.
Adjusted EBITDA reached $1.40 billion, giving Equinix a record EBITDA margin of 53%. Adjusted funds from operations (AFFO) per share also increased 19% year-on-year to $11.78.
The company also recorded strong customer activity during the quarter. It added a record 9,700 net interconnections, while annualised gross bookings grew 23%, making it the second-highest quarterly booking performance in its history.
Following the results, Equinix raised its full-year 2026 revenue forecast to between $10.21 billion and $10.29 billion, up from its earlier guidance of $10.14 billion to $10.24 billion.
It also increased its forecast for adjusted funds from operations to $42.69 to $43.29 per share, compared with its previous outlook of $42.31 to $43.11 per share.
Looking further, the company now expects annual revenue growth of 10% to 13% through 2029, higher than its previous forecast of 7% to 10%. It also lifted its long-term AFFO per share growth outlook to 9% to 12% annually from 5% to 9%.
Equinix plans to invest between $5 billion and $7 billion in capital expenditure each year, concentrating on its top 25 metropolitan markets. The company currently has 52 major projects under construction across 33 markets and expects to double cabinet deliveries during the second half of 2026.
The company said demand continuously comes from businesses upgrading their digital infrastructure and deploying new AI workloads. It added that customer demand is broad-based and growing, leaving it well placed to support enterprise networking, cloud and AI infrastructure requirements worldwide.
Equinix operates 281 data centres globally and provides businesses with secure, power-efficient facilities to host IT equipment alongside connectivity services. Its customer base includes Nvidia, Netflix, Adobe, Cisco and Palantir.
Although investors reacted cautiously to the near-term revenue outlook, Equinix guidance believes that demand for data centre capacity and digital infrastructure will continue to grow over the next several years, with shares having a positive projection.
