Are AI strategies changing deal structures, market demand, deal sizes, and interconnection attach rates?

Adaire noted increased density in deals as customers secure capacity for energy/compute. Interconnection saw strong net adds (9,700) and revenue growth (9%). Pricing remained firm despite increasing footprint sizes. Olivier emphasized the increasing complexity of the ecosystem (cloud, neocloud, enterprise AI) playing to Equinix's strengths. “Certainly, the density of our deals is moving upwards as customers seek to secure the capacity that they need for their energy and their compute future.”

How do renewal spreads contribute to the multi-year upside guidance, and what financing tools will be used for the CapEx plan, considering leverage?

Adaire stated healthy and firm pricing, with meaningful mark-to-market opportunity, especially in constrained markets like Ashburn. Olivier explained that growth will be funded by retained cash flow (50% payout ratio) and debt, maintaining investment-grade ratings. Leverage is expected to increase by about one turn, and the blended cost of capital by 150 bps. “We would expect leverage to increase by about a turn between now and the end of the planning period. And to finalize the blended cost of capital should increase by about 150 basis points, again, blended Jonathan.”

How does Equinix ensure effective CapEx deployment and adjust to demand changes, and will capacity match demand by 2029?

Adaire emphasized thoughtful CapEx deployment in high-value metros, with demonstrated ability to accelerate capacity (e.g., 20% of 2025 retail footprint into 2026, tripling Q4 cabinet availability). She highlighted a proprietary demand model and strong external factors (early enterprise AI, durable networking demand, firm IT budgets) supporting confidence. “So the team has the opportunity to accelerate. There's some demonstrated proof of doing that.”

EQIX

Equinix (EQIX) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Real Estate· Jul 29, 2026

Source: earnings call transcript

Executive summary

Equinix Q2 FY26 — Record Bookings and Significant Guidance Raise

The AI-driven infrastructure cycle is accelerating, playing directly to Equinix's strengths in neutral, interconnected infrastructure. The company delivered strong Q2 results with record bookings and interconnections, leading to a significant raise in full-year and long-term guidance. This reflects robust demand and disciplined execution, particularly in top metros, as Equinix continues to expand capacity to meet evolving customer needs.

Highlights

Monthly recurring revenue (MRR) growth accelerated to 11% year-over-year on a normalized and constant currency basis.
Annualized gross bookings grew 23%, reaching $424 million, the second highest volume on record.
Added a record 9,700 net interconnections.
AFFO per share grew 18% year-over-year on a normalized and constant currency basis.
Full-year 2026 revenue guidance raised to 11-12% growth, and AFFO per share growth to 10-12%.

Concerns

Churn was 1.8% in Q2 FY26, primarily due to renewal process execution and some delayed churn, though expected to be near the lower end of the typical 2% to 2.5% range for the back half of the year.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 revenue growth	11% to 12% high materiality	FY26	High
Full-year 2026 AFFO per share growth	10% to 12% high materiality	FY26	High
Full-year 2026 CapEx	$5 billion to $6 billion high materiality	FY26	High
Annual CapEx	$5 billion to $7 billion high materiality	FY27-FY29	High
Total revenue growth	10% to 13% range annually high materiality	FY27-FY29	High
AFFO per share growth	9% to 12% range annually high materiality	FY27-FY29	High
Adjusted EBITDA margin	53% or higher high materiality	FY29	High
Dividend growth	approximate AFFO per share growth medium materiality	FY27-FY29	High
Q3 FY26 MRR growth	9% to 11% year-over-year medium materiality	Q3 · FY26	High
Q3 FY26 Total revenue growth	10% to 12% year-over-year medium materiality	Q3 · FY26	High
Q3 FY26 Adjusted EBITDA margin	51% medium materiality	Q3 · FY26	High
Full-year 2026 Total revenue guidance	raised by $100 million high materiality	FY26	High
Full-year 2026 MRR growth	around 10% medium materiality	FY26	High
Full-year 2026 Adjusted EBITDA guidance	raised by $62 million high materiality	FY26	High
Full-year 2026 Adjusted EBITDA margin	approximately 51% high materiality	FY26	High
Full-year 2026 AFFO guidance	raised by approximately $50 million high materiality	FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Americas Strong performance, even after normalizing for the Hampton transaction. Much of the AI activity and company base exists here. Hampton xScale leases closed: 134 megawattsHampton nonrecurring fees: $120 million	—	low-teens double-digit growth	—	—

EQIX operating KPIs by quarter

EQIX operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Mar 2025 Q1 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Change vs prior quarter
Interconnections	482K+ We now have more than 482,000 total interconnections deployed on our industry-leading platform. Source: earnings call transcript	486K+ Interconnection revenues grew a healthy 9% year-over-year on a normalized and constant currency basis with more than 486,000 total interconnections now deployed. Source: earnings call transcript	499K+ We added 7,100 net physical and virtual connections in Q3, bringing our total to more than 499,000. Source: earnings call transcript	500K+ We also crossed an extraordinary milestone in Q4, surpassing 0.5 million interconnections worldwide. Source: earnings call transcript	500K+ This is a structural competitive advantage given the more than 500,000 live interconnections across our ecosystem. Source: earnings call transcript	—	—
Net interconnection additions	6,000 We added an incremental 6,000 underlying interconnections in Q4. Source: earnings call transcript	3,900 And finally, we had strong seasonal gross interconnection additions, resulting in a healthy net 3,900 total interconnections added in Q1. Source: earnings call transcript	7,100 We added 7,100 net physical and virtual connections in Q3, bringing our total to more than 499,000. Source: earnings call transcript	7,800 We added 7,800 net interconnections in the quarter, including our adjustments. Source: earnings call transcript	5,800 We increased physical and virtual net interconnections by 5,800 with particular strength in fabric additions. Source: earnings call transcript	9,700 We added 9,700 net interconnections, our most ever and AFFO per share grew 18% on a normalized and constant currency basis. Source: earnings call transcript	+67.2%
MRR churn rate	2.5% Global Q4 MRR churn was 2.5%, as planned, due to the previously discussed deferral of MRR churn from late September into early October. Source: earnings call transcript	2.4% Global Q1 MRR churn was 2.4%, as expected. Source: earnings call transcript	—	—	1.7% Churn came at 1.7%, primarily due to the benefit of some delayed churn and through focus and execution during our renewal process. Source: earnings call transcript	1.8% Churn was 1.8% primarily due to our renewal process execution and some delayed churn. Source: earnings call transcript	+0.1 pt
Capital expenditures Recurring	$115M For the quarter, capital expenditures were approximately $1 billion, including seasonally higher recurring CapEx of $115 million as planned. Source: earnings call transcript	$26M Capital expenditures were $750 million, including seasonally lower recurring CapEx of $26 million as expected. Source: earnings call transcript	$64M Capital expenditures were approximately $1.14 billion, including a recurring CapEx of $64 million. Source: earnings call transcript	—	—	—	+146.2%
Properties Stabilized assets	177 Our now 177 stabilized assets increased revenues by 3% year-over-year on both an as-reported and constant currency basis. Source: earnings call transcript	190 Our now 190 stabilized assets increased recurring revenues by 3% year-over-year on a constant currency basis and are collectively 82% utilized and generated a 26% cash-on-cash return on the gross PP&E invested. Source: earnings call transcript	188 Our now 188 stabilized assets increased revenues by 4% year-over-year on a constant currency basis and are collectively 82% utilized and generate a 26% cash-on-cash return on the gross PP&E invested. Source: earnings call transcript	187 Related to our now 187 stabilized assets, revenues increased by 6% year-over-year on a constant currency basis. Source: earnings call transcript	192 Our 192 stabilized assets increased recurring revenue by 6% year-over-year, are collectively 82% utilized and generated a 26% cash-on-cash return on growth PP&E Source: earnings call transcript	194 Our 194 stabilized assets are collectively 82% utilized and generated a 27% cash-on-cash yields on gross PP&E We continue to achieve these outsized returns on assets we have delivered in recent years. Source: earnings call transcript	+1%
Occupancy rate Stabilized assets	83% Stabilized assets were collectively 83% utilized and generated a 27% cash-on-cash return on the gross PP&E invested. Source: earnings call transcript	82% Our now 190 stabilized assets increased recurring revenues by 3% year-over-year on a constant currency basis and are collectively 82% utilized and generated a 26% cash-on-cash return on the gross PP&E invested. Source: earnings call transcript	82% Our now 188 stabilized assets increased revenues by 4% year-over-year on a constant currency basis and are collectively 82% utilized and generate a 26% cash-on-cash return on the gross PP&E invested. Source: earnings call transcript	82% These stabilized assets are collectively 82% utilized and generated a 27% cash-on-cash return on the gross PP&E invested on a constant currency basis. Source: earnings call transcript	82% Our 192 stabilized assets increased recurring revenue by 6% year-over-year, are collectively 82% utilized and generated a 26% cash-on-cash return on growth PP&E Source: earnings call transcript	82% Our 194 stabilized assets are collectively 82% utilized and generated a 27% cash-on-cash yields on gross PP&E We continue to achieve these outsized returns on assets we have delivered in recent years. Source: earnings call transcript	0 pt

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Backlog sold but not yet installed record level Q2 FY26

The transcript states 'record level' without a specific dollar amount.

Q3 bookings target closed over 45% Q2 FY26

Refers to the percentage of the Q3 bookings target already closed by the end of Q2.

Deals & partnerships

OrionVM Selected Equinix to power its fully managed private agentic AI bundle.

Helping enterprises deploy and scale sovereign agentic AI with a clear path to measurable ROI. Built on Equinix's secure neutral infrastructure, the bundle supports private AI deployments, heterogeneous compute and autonomous AI capabilities. OrionVM's collaboration with Tenstorrent provides greater choice at the AI accelerator layer.

SCX.ai Partnered with Equinix to build Australia's first sovereign AI inferencing node.

Leveraging Equinix's Sydney operations. Equinix enables a faster, more governed path to integrating AI into core operations with a scalable foundation for expansion across Asia Pacific.

Raymond James Selected Equinix to augment their on-premise model to multi-cloud infrastructure.

Key factors included Equinix's ability to enable low latency connectivity to their customers, cloud and SaaS providers, and the strength of the financial services industry ecosystem.

Verizon Working with Equinix to deliver enhanced enterprise connectivity by combining their adaptive network fabric with Equinix' neutral interconnection hubs.

Integration via APIs allows for near real-time provisioning. Equinix's metro density, global scale, and advanced automation help lower execution risk and accelerate service delivery.

Cisco and NVIDIA Expanded collaboration to bring standardized AI factory blueprint and automation across global IBX network.

Tackles the challenge of infrastructure to support AI scale, helping enterprises move faster with greater certainty.

Presidio New partnership to allow customers to test and validate before they scale.

Helps enterprises move faster with greater certainty in their AI deployments.

Capital programs

Capacity expansion underway

Start: H2 2026

Benefit:double the number of cabinets

we will double the number of cabinets we deliver in the second half of the year.

Capacity additions underway

Benefit:more than 7,000 cabinets

Our acceleration of more than 7,000 cabinets from 2027 into Q4 2026, reflects our confidence in our ability to deliver as well as our commitment to bring capacity online faster to meet growing demand.

Major projects underway

Benefit:52 projects across 33 markets

We now have 52 major projects underway across 33 markets. This quarter, we announced significant new projects in Chicago, Istanbul and Johor, with more expected throughout the remainder of the year.

Risks & headwinds

Churn rate Q2 FY26

1.8%

Mitigation:Expected to be near the lower end of typical 2% to 2.5% range for H2 FY26; primarily due to renewal process execution and some delayed churn.

What to watch in Q3 FY26

MRR growth acceleration

Q3 FY26

Current 11% YoY (normalized, constant currency)

Target Continued double-digit growth, within Q3 guide of 9-11%

Why it matters

Sustained MRR growth is a key indicator of underlying business strength and successful conversion of bookings into revenue, especially with accelerated capacity.

Monthly recurring revenue growth accelerated to 11% year-over-year on a normalized and constant currency basis. This marks our third straight quarter of double-digit MRR growth with strong profit performance.

Find out whether EQIX delivers this. Inve re-checks your case every morning.

Q&A highlights

What gives confidence for the significant CapEx increase and long-term guidance raise, and how does it impact the revenue growth mechanism?

Adaire highlighted accelerated AI infrastructure cycle, Equinix's unique positioning, and improved execution across sales, operations, margins, and financing. Olivier added that over 80% of CapEx will be deployed in top 25 metros where Equinix has a strong competitive advantage and ecosystem.

“The raise reflects our recent outperformance and a stronger outlook for the rest of the year.”

asked by Eric Luebchow · answered by Adaire Fox-Martin

2 min read 6 chapters

Detailed narrative

AI-Driven Demand and Strategic Positioning

Equinix is experiencing accelerated demand from the AI-driven infrastructure cycle, leveraging its global scale, differentiated portfolio, and ecosystem. The company is uniquely positioned to support enterprise AI strategies, particularly for inferencing, with customer demand spanning modernization of on-prem infrastructure and net new AI-native workloads.

This broad-based demand, coupled with strong execution, underpins the significant guidance raise, reflecting a materially improved market opportunity over the past year.

Capacity Expansion and Returns

To meet robust demand, Equinix plans to double cabinet deliveries in H2 2026 and invest $5 billion to $7 billion annually in CapEx through 2029, primarily in its top 25 metros. These high-conviction investments are expected to deliver mid-20% cash-on-cash yields, reflecting the company's focus on offering differentiated infrastructure and services.

The strategy emphasizes accelerating delivery timelines and deployment flexibility while minimizing earnings drag and maximizing long-term growth.

Ecosystem Density and Competitive Advantage

Equinix's ecosystem is approximately twice the size of its next largest competitor, attracting interconnection-rich workloads and fostering a flywheel of growth. Eight of the top 10 model providers and neoclouds utilize Equinix for key networking workloads. New offerings like Fabric Geo Zones address data sovereignty and compliance, while collaborations with Cisco, NVIDIA, and Presidio standardize AI factory blueprints and automation, further enhancing the company's competitive edge.

Operational Excellence and Supply Chain Management

The company's strong operational execution is evident in its ability to accelerate capacity delivery, with over 7,000 cabinets moved from 2027 into Q4 2026. Equinix manages supply chain risks through robust procurement, significant supplier relationships, and a fungible design footprint, enabling prepurchasing of equipment.

Long-standing relationships with general contractors in key markets further ensure project execution on time and at scale, supported by a strong balance sheet.

Capital Structure and Funding Growth

Equinix maintains a strategic focus on its investment-grade credit rating, funding growth through retained cash flow (with a payout ratio in the 50% range) and debt. The company expects a moderate increase in leverage, approximately one turn, by the end of the planning period, with the blended cost of capital increasing by about 150 basis points.

This disciplined approach ensures sustainable funding for its robust growth opportunities while preserving financial flexibility.

Customer Use Cases for AI

Equinix observes four distinct AI use cases among its enterprise customers: 'stack' (running open models on private AI infrastructure to reduce token costs), 'sovereign' (deploying AI stacks for data residency and compliance, supported by Fabric Geo Zones), 'batch' (establishing AI factories for model training and batch inferencing, often leveraging liquid cooling), and 'latency-sensitive' (requiring infrastructure presence in metros for low latency and reduced data backhaul costs).

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.