Equinix Eyes Double-Digit Growth with 51% Margin Forecast and AI Bookings Surge
Equinix closed 2025 with $9.2 billion revenue, ~49% operating margin and $3.8 billion AFFO, driven by record bookings—over half tied to AI—and 500,000+ interconnections globally. Management forecasts double-digit revenue growth, 51% EBITDA margin and low double-digit AFFO growth in 2026, though free cash flow remains negative on heavy capital spending.
1. 2025 Operational Highlights
Equinix generated $9.2 billion in revenue during 2025, achieving an operating margin near 49% and AFFO of $3.8 billion. Record annualized gross bookings exceeded prior levels, with over 50% tied to AI workloads, while global interconnections surpassed 500,000, underscoring strong network effects.
2. Capital Spending and Cash Flow
The company’s ongoing data center buildouts, xScale expansion and real estate acquisitions drove negative free cash flow despite robust momentum. Rising leverage funded growth initiatives, reflecting a strategic focus on capacity deployment over near-term cash generation.
3. 2026 Growth Outlook
Management projects double-digit revenue growth for 2026, an EBITDA margin increase toward 51% and low double-digit AFFO growth. Continued AI-driven demand and hybrid cloud adoption are cited as primary drivers of future expansion.
4. Dividend and Investment Thesis
Equinix maintained its dividend, raising it roughly 10% year over year, supported by AFFO growth. Investors must weigh the upside of scalable AI infrastructure exposure against capital intensity, interest rate sensitivity and reliance on external funding.