Feb 11 (Reuters) - Equinix EQIX.O forecast annual revenue above estimates on Wednesday, betting on strong artificial intelligence-linked demand for the largest data center operator's services, sending its shares up over 6% in extended trading.
As corporations race to integrate generative AI, the surge in demand for specialized data centers to power the technology has benefited Equinix.
The company expects revenue between $10.12 billion and $10.22 billion for 2026, compared with estimates of $10.07 billion, according to data compiled by LSEG.
Equinix also forecast first-quarter sales between $2.50 billion and $2.54 billion, above estimates of $2.46 billion.
"Equinix plays an essential role helping businesses connect and manage increasingly distributed AI, cloud and networking infrastructure. This is a source of long-term competitive advantage," CEO Adaire Fox-Martin said in a statement.
The company has doubled down on expanding capacity, investing in new data centers in emerging markets like Chennai, India and Jakarta, Indonesia, to capture accelerating demand.
It reported revenue of $2.42 billion for the fourth quarter, missing estimates of $2.46 billion.
Results in the December quarter were modestly impacted by the timing of a transaction related to leasing one of its sites, which is now expected to close in early 2026, the company said.
Net income from continuing operations stood at $264 million in the quarter, compared to a year-ago loss of $14 million.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Vijay Kishore)
((Anhata.Rooprai@thomsonreuters.com))