Equinix Price Target Up to $1,075 After Q4 Revenue and AFFO Beat
On Feb 13 Morgan Stanley raised Equinix’s 12-month price target to $1,075 from $950 after Q4 revenue of $2.4B (+7% YoY) and AFFO of $877M (+13%). Management guided 2026 revenue growth of 9–10%, AFFO growth of 9–11% and a ~10% dividend hike.
1. Analyst Price Target Revisions
Morgan Stanley boosted its 12-month price target on Equinix to $1,075 from $950 and maintained an Overweight rating after the company reported accelerating revenue and AFFO growth. The day earlier, Scotiabank raised its target to $997 from $959, citing a robust project backlog and upcoming site openings.
2. Q4 Financial Results
Equinix reported Q4 revenue of $2.4 billion, up 7% year over year, and adjusted EBITDA of $1.2 billion with a 49% margin. AFFO reached $877 million, a 13% increase from the prior year, driven by strong recurring service bookings.
3. 2026 Growth Outlook
Management guided 2026 revenue growth of 9–10% and AFFO growth of 9–11%, targeting an adjusted EBITDA margin of approximately 51%. The company also plans a roughly 10% year-over-year dividend increase, totaling about $2.0 billion in cash payouts.
4. Demand Fundamentals and Backlog
Equinix noted record gross bookings in Q4 and a healthy backlog entering 2026, underpinned by rising demand for colocation, interconnection and edge services. New site launches across key metro markets are expected to accelerate earnings and reinforce its recurring revenue base.