Equinix’s Board of Directors has approved an 8% increase in the quarterly dividend, raising the payout to $1.60 per share, up from $1.48 in Q4 2025. This marks the tenth consecutive annual dividend hike and underscores management’s confidence in free cash flow generation. The dividend increase translates into a new annualized yield of approximately 3.4%, supported by strong Adjusted Funds From Operations (AFFO) coverage of 1.4x. Investors should note that the dividend remains well covered by operating cash flow, with a target AFFO payout ratio maintained below 65%.

During Q4 2025, Equinix added 2,200 net new cabinets across its International Business Exchange (IBX) data centers, a 12% year-over-year increase. Management cited robust demand from hyperscale AI deployments, which drove a 15% rise in monthly recurring revenue (MMR) per cabinet. The company’s AI-optimized xScale platform saw bookings surge by 45% sequentially, representing over 30% of total bookings in the quarter. These figures underpin Equinix’s FY2029 AFFO per share target of $50+, with capacity expansion plans to add 15,000 cabinets globally by 2027.

Equinix ended Q4 2025 with net debt of $27.8 billion and a leverage ratio of 5.2x net debt to EBITDA, providing ample headroom under its covenant ceiling of 6.0x. In December, the company secured three new land parcels totaling 250 acres in key markets—Frankfurt, São Paulo and Singapore—under long-term purchase agreements. These acquisitions, combined with $1.2 billion of untapped revolver capacity and $800 million in sale-leaseback facilities, position Equinix to fund over $4.5 billion of capital expenditures through 2027 without incremental equity issuance. Ongoing power procurement contracts covering 600 megawatts will ensure availability for future IBX and xScale developments.