Abstract

Equinix will release quarterly results on February 11, 2026, Post Market; our preview highlights estimated revenue of 2.46 billion US dollars and adjusted EPS of 3.85, with investors watching bookings, price escalators, high‑density deployments tied to AI, and cost discipline to gauge the sustainability of margin trends and earnings momentum.

Market Forecast

Market expectations indicate Equinix is poised to deliver revenue of 2.46 billion US dollars for the to‑be‑reported quarter, implying 8.22% year‑over‑year growth, alongside adjusted EPS projected at 3.85 with a 42.30% year‑over‑year increase; management has not provided explicit near‑term guidance for gross profit margin or net margin, so margin expectations are embedded in operating forecasts. Forecast EBIT is 557.36 million US dollars, up 37.29% year‑over‑year, supporting the expectation that operating leverage from pricing and utilization can offset cost inflation and expansion spending.

The core business is set to be anchored by recurring services that maintain high revenue visibility, where investors will focus on the interplay between expansion capacity, interconnection attach rates, and price escalators for signs of momentum and durability. The company’s most promising growth vector near term is expected to be high‑density compute and AI‑related deployments within its recurring portfolio, which feed incremental power and interconnection demand; with recurring services constituting 95.64% of last quarter revenue, the anticipated 8.22% year‑over‑year top‑line increase would largely be driven by this base.

Last Quarter Review

In the previous quarter, Equinix delivered revenue of 2.32 billion US dollars, with a gross profit margin of 51.26%, GAAP net profit attributable to shareholders of 374.00 million US dollars, a net profit margin of 15.96%, and adjusted EPS of 3.85, reflecting year‑over‑year growth of 5.23% for revenue and 24.19% for adjusted EPS. A key financial highlight was that adjusted EPS exceeded consensus by 0.20 US dollars, while GAAP net profit grew quarter‑on‑quarter by 1.63%, signaling healthy operating execution despite a tight capacity and cost environment.

Within the revenue mix, recurring services contributed 2.22 billion US dollars, or 95.64% of total revenue, underscoring the dominance of subscription‑like streams; non‑recurring activity accounted for 101.00 million US dollars, or 4.36% of total revenue, supported by customer installation and professional services linked to deployments that typically lead recurring revenue ramps.

Current Quarter Outlook

Recurring and Interconnection Services

Recurring services remain the centerpiece of Equinix’s model and are expected to drive most of the 8.22% year‑over‑year revenue growth embedded in current quarter estimates of 2.46 billion US dollars. Investors will focus on the cadence of bookings, renewal pricing behavior, and interconnection attachment as the most direct levers of sequential and year‑over‑year momentum in adjusted EPS, which is forecast at 3.85 with 42.30% year‑over‑year growth. Price escalators and cross‑sell from digital services can deliver incremental revenue without a commensurate increase in cost of sales, helping preserve gross margin durability even if expansion‑related costs rise temporarily. On renewals, the mix of term extensions and expansions affects near‑term pricing optics but tends to translate into better medium‑term revenue quality when interconnection density increases with customer deployments. The breadth of recurring demand also provides insulation against lumpy non‑recurring activity, which, while accretive, can be volatile quarter‑to‑quarter; this makes sustained progress in interconnection and recurring attach metrics a critical signal for the stock. A constructive outcome for the quarter would feature stable or better‑than‑planned utilization in key metros, healthy net cabinet additions, and steady interconnection ticket growth, all of which support both the revenue line and operating leverage.

AI and High‑Density Deployments

High‑density compute and AI‑related deployments are a growing influence on the revenue trajectory, particularly where customers require liquid cooling readiness and dense power allocations that command premium economics. While management has not broken out AI‑specific revenue as a standalone line, the underlying demand characteristics—larger power footprints, higher interconnection intensity, and multi‑region footprint requirements—tend to lift both recurring revenue per footprint and the mix of higher‑value services. The to‑be‑reported quarter’s forecast EBIT of 557.36 million US dollars, up 37.29% year‑over‑year, implicitly assumes that operating leverage from these deployments is beginning to materialize as cohorts of recently activated capacity enter early ramp phases. The most visible near‑term indicators for AI‑linked and high‑density demand include order backlog conversion, the timing and scale of go‑lives in newly delivered capacity, and the balance between liquid‑cooling readiness and traditional air‑cooled footprints. Execution risk centers on delivery timelines and readiness of supporting infrastructure, but as phases are commissioned and occupied, the financial model benefits through both revenue and EBIT scaling. This quarter, watch for commentary around densification rates, take‑rates for higher‑bandwidth interconnection products, and the pace of bookings from customers whose workloads require proximity to diverse network fabrics; these factors would frame how quickly AI‑linked demand translates into measurable revenue growth within the 95.64% recurring base.

Share Price Drivers This Quarter

The most immediate stock‑price sensitivities are the relationship between top‑line growth and margin stability, as well as the translation of bookings into adjusted EPS. With revenue expected at 2.46 billion US dollars and adjusted EPS at 3.85, investors will parse cost trends in power, facilities operations, and expansion overhead to assess how much of the 51.26% gross margin from last quarter can be sustained or improved as newly delivered space ramps toward target utilization. Net profit margin was 15.96% last quarter; despite the absence of explicit margin guidance for the current quarter, the mix shift toward interconnection and digital services within the recurring portfolio is a supportive factor for operating leverage if volumes track to plan. Bookings quality—defined by the blend of new logos, expansions, and interconnection tickets—tends to be a leading indicator of revenue durability, and a solid net‑new pipeline would support both revenue growth and confidence in the earnings outlook. Non‑recurring revenue at 101.00 million US dollars in the prior quarter is helpful for onboarding and complex deployments, but the market will focus on the subsequent uplift to recurring revenue as these projects convert to run‑rate services. Finally, any updates on capacity delivery timing and power availability in key metros can influence how quickly revenue and EBIT reach their forecast trajectories, particularly given the 37.29% year‑over‑year EBIT growth assumption embedded in estimates.

Analyst Opinions

Bullish views dominate the recent commentary window, with multiple Buy ratings and no Sell ratings in the January 2026 to February 2026 period, reflecting a clear skew toward positive expectations for the quarter. A BMO Capital analyst maintained a Buy rating in January 2026 with a 925.00 US dollars price target, citing confidence in sustained bookings and pricing dynamics that support operating leverage and earnings growth into 2026; the emphasis was on high‑quality demand in core metros and the monetization of dense interconnection ecosystems that lift revenue per footprint. An HSBC analyst also kept a Buy rating with a 1,050.00 US dollars target in early 2026, pointing to favorable exposure to AI‑driven, high‑density deployments and the runway for recurring revenue growth as expansion phases come online through the calendar year.

The bullish case coalesces around three pillars that are directly relevant to the to‑be‑reported quarter. First, the recurring revenue base of 2.22 billion US dollars last quarter, accounting for 95.64% of total revenue, creates a durable foundation for the projected 8.22% year‑over‑year revenue increase, with incremental upside if booking conversion and interconnection attach rates surprise positively. Second, operating leverage is expected to improve as recently delivered capacity ramps and as high‑density workloads expand, supporting the 37.29% year‑over‑year EBIT growth embedded in current forecasts; this also underpins the 42.30% year‑over‑year growth in adjusted EPS to 3.85. Third, positive pricing dynamics, including escalators on renewals and favorable mix toward interconnection and digital services, can cushion power and facility cost variability and help maintain gross margins near or above last quarter’s 51.26% level if utilization remains healthy.

In evaluating this quarter’s setup, bullish institutions argue that the top‑line estimate of 2.46 billion US dollars is attainable, with upside bias if the company reports stronger‑than‑expected installations and faster activation of customer deployments. They also emphasize that the quarter’s EPS trajectory is less sensitive to non‑recurring swings because the recurring engine provides baseline momentum; as a result, small beats on bookings or interconnection can yield disproportionate benefits to adjusted EPS. The view is that demand tied to AI and high‑density compute will continue to filter through the order book and into revenue during the coming quarters, supporting a multi‑quarter improvement in operating leverage that is already evident in the projected EBIT growth. While cost and delivery execution will be closely scrutinized—particularly around power readiness and construction phasing—the balance of evidence favored by bullish analysts suggests that margin stability combined with revenue growth can reinforce confidence in the 2026 earnings path.

As a synthesis of the majority viewpoint, the market enters this print expecting clean execution: revenue of 2.46 billion US dollars, adjusted EPS of 3.85, and a steady hand on margins as recurring services drive year‑over‑year growth. The upside scenario rests on faster activation of AI‑linked, high‑density deployments and robust interconnection momentum, while the base case already embeds healthy operating leverage implied by the 37.29% year‑over‑year EBIT growth forecast. With Buy ratings and price targets in the 925.00 US dollars to 1,050.00 US dollars range during January 2026, the dominant institutional stance remains constructive on near‑term performance and the translation of bookings into earnings strength over the next several quarters.