Equinix Raises 2026 Guidance After Q1 Sales Surge 35% and AFFO Tops $1B
Equinix posted record Q1 sales, up 35% year-over-year, with AFFO surpassing $1 billion and recurring revenue up 10% on a constant-currency basis. It raised 2026 guidance to 10%–11% revenue growth and 10%–12% AFFO growth, while interconnection revenue increased 9% and fabric revenue jumped 26%.
1. Q1 Financial Highlights
In Q1, Equinix posted record sales activity up 35% year-over-year, with AFFO exceeding $1 billion for the first time and recurring revenue growing 10% on a constant-currency basis. Interconnection revenue rose 9% and fabric revenue jumped 26%, reflecting strong demand for connectivity services.
2. Raised 2026 Guidance
Equinix raised its full-year 2026 guidance to forecast 10%–11% total revenue growth, an adjusted EBITDA margin of approximately 51%, and 10%–12% AFFO growth. Management cited robust sales activity and resilient demand across its platform as drivers for the upward revision.
3. AI Infrastructure and Partnerships
The company expanded its xScale pipeline, deploying 110 network nodes through partnerships with 8 of the top 10 AI model providers and 4 of the top 5 Neo Clouds. Pre-leasing activity of $140 million underscores customer commitment to securing space and energy resources for AI workloads.
4. Operational Challenges and Capex
Equinix is at the high end of its capital expenditure range, which may limit future investment flexibility, and faces challenges managing high-density workloads alongside delayed churn. Its energy hedging program mitigates rising energy costs, but space and power constraints require careful planning.