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    EQIX
    Earnings call· Dec 2025(Q4 FY25)

    EQUINIX Q4 FY25 earnings call EQIX

    Feb 11, 2026 Source

    Executive summary

    Equinix Q4 FY25 — Record Bookings and Strong AI-Driven Demand

    Equinix closed FY25 with record Q4 bookings, driven by strong demand across all segments and a significant uptick in AI-related workloads, which accounted for 60% of largest deals. The company's differentiated platform and execution led to robust recurring revenue growth and improved AFFO per share, positioning it for accelerated growth in 2026 despite minor FX headwinds and a timing shift in a key xScale transaction.

    Highlights

    7

    • Annualized gross bookings reached $1.6 billion in 2025, marking a 27% year-over-year increase.

    • Q4 bookings were $474 million, up 42% year-over-year and 20% quarter-over-quarter, significantly exceeding plans.

    • Monthly recurring revenue (MRR) grew 10% in Q4 and 8% for the full year on a normalized and constant currency basis.

    • Adjusted EBITDA in Q4 was $1.2 billion, representing a 15% year-over-year increase and a 49% margin.

    • AFFO for Q4 increased 13% year-over-year to $877 million, contributing to better-than-expected cash flows.

    • The company surpassed 0.5 million interconnections worldwide in Q4, adding 7,800 net interconnections.

    • Approximately 60% of the largest deals in Q4 were driven by AI workloads, up from 50% earlier in the year.

    Concerns

    4

    • The Hampton xScale transaction, a large lease, shifted its expected closing from Q4 FY25 to Q1 FY26.

    • Q4 revenues included an $8 million currency headwind when compared to prior guidance rates.

    • Q4 adjusted EBITDA included a $4 million FX headwind when compared to prior guidance rates.

    • Q4 AFFO included a $2 million FX headwind when compared to prior guidance rates.

    Guidance & targets

    9
    CategoryTargetConfidence
    Full-year 2026 total revenues growth
    9%-10%
    high materiality
    High
    Full-year 2026 monthly recurring revenues growth
    8%-10%
    high materiality
    High
    Full-year 2026 adjusted EBITDA margins
    approximately 51%
    high materiality
    High
    Full-year 2026 AFFO growth
    9%-11%
    high materiality
    High
    Full-year 2026 AFFO per share growth
    8%-10%
    high materiality
    High
    Full-year 2026 CapEx
    $3.7 billion and $4.2 billion
    high materiality
    High
    Quarterly cash dividend increase
    10%
    medium materiality
    High
    Total 2026 cash dividends paid
    approximately $2 billion
    medium materiality
    High
    Monthly recurring revenue (MRR) churn
    2%-2.5%
    medium materiality
    High

    Operational metrics

    29
    Annualized gross bookings
    $1.6 billionup 27% year-over-year
    FY25
    Annualized gross bookings
    $474 millionup 42% year-over-year and 20% from Q3
    Q4 FY25
    Incremental presales balance
    $170 million
    Q4 FY25
    Presales balance
    over $100 million
    Q1 FY26 YTD

    largest presale quarter ever as of mid-Q1

    Q1 2026 target booked
    approximately 45%
    Q1 FY26 YTD
    Adjusted EBITDA margin
    49%up 15% over same quarter last year (EBITDA growth)
    Q4 FY25
    Net leverage
    3.8x
    year-end 2025
    Cash and short-term investments
    $3.2 billion
    year-end 2025
    Senior notes issued
    $1.8 billion
    Q4 FY25
    Capital expenditures
    $1.4 billion
    Q4 FY25
    Recurring CapEx
    $140 million
    Q4 FY25
    Revenues from owned assets
    70%
    Q4 FY25

    of recurring revenues

    Stabilized assets
    187
    Q4 FY25
    Stabilized assets revenue growth
    6%year-over-year
    Q4 FY25
    Stabilized assets cash-on-cash return
    27%
    Q4 FY25
    AI workloads as % of largest deals
    60%up from approximately 50% earlier this year
    Q4 FY25
    AI deals density
    33% higher
    Q4 FY25

    compared to non-AI deals

    Transactions
    over 17,200up 6% year-over-year
    FY25
    Unique customers
    over 6,100
    FY25
    Transaction volume
    over 4,500
    Q4 FY25

    highest ever

    Unique customers
    more than 3,400
    Q4 FY25
    Existing customers adding new services
    more than 60%
    FY25
    Pipeline conversion rate
    around 49%
    Q4 FY25
    SG&A as % of revenue
    18%-19%
    current

    round numbers

    SG&A as % of revenue target
    15%
    long-term
    Retail capacity delivered
    23,250
    FY25
    XScale capacity delivered
    more than 90
    FY25
    Major projects underway
    52
    Q4 FY25
    New expansion projects added
    10
    since October

    Industry KPIs

    7
    MetricValueDetails
    Power based occupancy82%%
    Interconnection revenue9%%
    Signed not commenced backlogrecord
    Bookings leasing volume signed$474 millionUSD
    Stabilized asset pool performance187assets
    Colocation recurring revenue economics10%%
    Power pipeline secured vs advanced stage vs unde3 gigawattsGW

    Orderbook & backlog

    6
    Signed-not-commenced leasing backlogrecordQ4 FY25

    driven by strong bookings performance, especially in the second half of 2025

    Developable land under control3 gigawattsQ4 FY25

    powered land or land close to securing power

    Land added to controlapproximately 1 gigawattlast year
    XScale capacity earmarkedclose to 1 gigawattQ4 FY25

    of approximate 3 gigawatts of developable capacity

    Hampton asset IT capacityapproximately 240 megawattswhen fully built out
    Americas JV capital deployment$15 billionQ1 FY26

    across major metros in the U.S.

    Deals & partnerships

    6
    Americas JVJV

    Contributed Hampton asset to the Americas JV in January.

    Salesforcecustomer contract

    Chose Equinix to create a private multi-cloud networking layer for their data and AI foundation, representing the largest global Fabric Cloud Router sale to date across 14 countries and 21 metros.

    Alembiccustomer contract

    Selected Equinix for scale, consistency, and interconnection ecosystem to deploy NVIDIA DGX SuperPOD with NVIDIA Grace Blackwell systems for distributed AI.

    Signetcustomer contract

    Chose Equinix Fabric Security to connect edge devices, cloud providers, and customer networks for real-time AI-driven quality control.

    Hudson River Tradingcustomer contract

    Selected Equinix for global footprint and advanced cooling solutions to achieve latency and density for next-gen AI trading workloads.

    Honeywell Corporationcustomer contract

    Expanded relationship with Equinix for secure, flexible solutions and global fabric connectivity in key metros like Shanghai, Tokyo, and London, driving integration of internal AI applications.

    Capital programs

    2
    Americas JV capital deploymentunderway$15 billion

    Benefit: deploy capital across major metros in the U.S.

    Hampton asset contributed in January as first step

    Global development portfoliounderway

    Benefit: 10 new expansion projects added since October

    52 major projects underway across 35 markets, including 9 xScale projects

    Risks & headwinds

    3
    XScale lease timing shiftQ4 FY25 / Q1 FY26

    Hampton transaction shifted from Q4 FY25 to Q1 FY26

    Mitigation: Management expects the transaction to close in Q1 FY26 and the site to be fully leased later in the year, with a healthy leasing pipeline established.

    Currency headwindsQ4 FY25

    $8 million impact on Q4 revenues, $4 million on Q4 adjusted EBITDA, $2 million on Q4 AFFO

    Mitigation: Company uses FX hedges and plans to raise debt in lower-cost locations (Canada, Singapore, Europe) to optimize net interest expense.

    Accelerated and increased expansion dragFY26

    Expected to absorb this in 2026

    Mitigation: Management expects to deliver improved adjusted EBITDA margins in 2026 despite this, through anticipated revenue growth and focused expense management.

    Q&A highlights

    10

    Can you elaborate on the Q4 bookings momentum, especially the 60% AI workload stat? Is it driven by traditional enterprises or hyperscalers, and will this trend continue?

    Adaire Fox-Martin explained that nearly half of the 60% AI-driven deals came from non-cloud and IT companies (retail, manufacturing, financial services), indicating broad enterprise AI adoption. She noted 11 liquid cool deployments in Q4, 5 for SSI customers in NYC, and sees this as a continued positive tailwind.

    “Interestingly enough, nearly half of them were deployed by non-cloud and IT companies but they were deployed by companies in the retail, e-commerce, manufacturing, financial services and content sector.”

    asked by Eric Luebchow · answered by Adaire Fox-Martin

    2 min read6 chapters

    Detailed Narrative

    01

    AI-Driven Demand & Enterprise Adoption

    Equinix is experiencing significant demand from AI workloads, with 60% of its largest Q4 deals driven by AI, an increase from 50% earlier in the year. Notably, nearly half of these AI deployments came from non-cloud and IT companies across diverse sectors like retail, manufacturing, and financial services, indicating broad enterprise AI adoption. These AI deals also demonstrated a 33% higher density compared to non-AI workloads, averaging 10 kVA per cabinet, highlighting the specialized infrastructure requirements.

    02

    Interconnection Ecosystem & Network Value

    The company surpassed 0.5 million interconnections worldwide in Q4, adding 7,800 net interconnections, more than double its nearest competitor. This milestone underscores Equinix's critical role in providing the connectivity infrastructure essential for massive real-time data movement, especially as AI amplifies these needs. The Salesforce deal, a global Fabric Cloud Router sale across 14 countries and 21 metros, exemplifies the strategic importance of Equinix's network products for complex multi-cloud and hybrid environments.

    03

    Record Bookings & Strong Pipeline

    Equinix delivered record annualized gross bookings of $1.6 billion in 2025, a 27% year-over-year increase, with Q4 bookings reaching $474 million, up 42% year-over-year and 20% quarter-over-quarter. This strong performance is expected to continue, with approximately 45% of the Q1 2026 target already booked and over $100 million in presales secured, marking the largest presale quarter to date. This momentum is attributed to robust demand across all workload types and disciplined internal execution.

    04

    Strategic Capacity Expansion & Development

    In 2025, Equinix delivered 23,250 cabinets in its retail business and over 90 megawatts in its xScale business, with more than 30% of retail capacity delivered ahead of schedule. The company has 52 major projects underway across 35 markets, including 9 xScale projects, and has added approximately 1 gigawatt to its powered land under control. This strategic expansion positions Equinix well to meet long-term demand from both enterprise and hyperscale customers.

    05

    XScale Business Momentum

    The Hampton asset was contributed to the Americas JV in January, representing a significant step towards deploying $15 billion of capital across major U.S. metros. This facility will support approximately 240 megawatts of IT capacity when fully built out, with a lease for half of it expected to be signed with a hyperscale customer in Q1, and full lease-up anticipated later in the year. Close to 1 gigawatt of the total 3 gigawatts of developable capacity is earmarked for the xScale business, demonstrating its value for recurring revenue growth.

    06

    Operational Efficiency & Margin Expansion

    Equinix achieved a Q4 adjusted EBITDA margin of 49%, reflecting a 15% year-over-year increase in EBITDA, driven by strong operating leverage and disciplined expense management. For 2026, the company expects a 200 basis point improvement in adjusted EBITDA margins to approximately 51%. This improvement is anticipated while continuing to invest in growth and absorbing expansion drag, with a long-term goal to reduce SG&A as a percentage of revenue to 15%.

    AI-generated summary of the company’s earnings call. Not investment advice.