| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 12 | 66.8x | 17.8x | Bottom tier | |
Growth | 71 | 9.6% | 7.1% | Top tier | |
Quality | 47 | 5.7% | 4.5% | Around median | |
Safety | 45 | 4.4x | 2.6x | Around median | |
Capital Return | 61 | 1.90% | 2.12% | Around median | |
Momentum | 80 | 34.8% | 2.9% | Top tier | |
Sentiment | 62 | 14 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Equinix, Inc. is a global platform for neutral, interconnected digital infrastructure, generating revenue by housing customer equipment in data centers, leasing cabinets and capacity, and providing interconnection and Equinix Fabric services. The platform serves the needs of enterprises, cloud providers, and artificial intelligence companies through a global network; management says its ecosystem is nearly twice the size of its closest competitor, and that eight of the ten largest model providers and eight of the ten largest neocloud providers run their primary network workloads on its platform.
In Q2 FY2026, revenue was $2.6 billion, gross profit was $1.4 billion, net income was $479 million, and earnings per share were $4.83. This equates to a gross margin of approximately 53.8% and a net margin of approximately 18.4%, compared with revenue of $2.4 billion, gross profit of $1.3 billion, and net income of $415 million in Q1 FY2026. According to the earnings call, total revenue grew 16% and recurring revenue grew 11% year over year on a normalized and constant-currency basis, while the closing of 134 megawatts of xScale contracts, including Hampton, contributed approximately $120 million in non-recurring fees.
The business mix was supported by the company’s highest quarterly addition of 9.7 thousand net interconnections, the addition of 4.2 thousand net billed cabinets, and approximately 9% growth in interconnection revenue. Performance was geographically broad-based; the Americas achieved low-double-digit growth even after excluding the Hampton impact, Asia-Pacific activity accelerated, and Europe, the Middle East, and Africa continued to perform strongly despite capacity constraints in Frankfurt and Amsterdam.
The average analyst price target is $1,242.93, within a range of $1,130 to $1,400, with a consensus rating of “Buy.” The average target is approximately 10% above the 52-week range high of $1,128.68, while the full 52-week range extends from $720.62 to $1,128.68; the breadth of analyst targets reflects differing assessments of the impact of artificial intelligence growth versus capital-spending and financing risks. No valid price-to-earnings ratio is available in the data, so the valuation assessment is based on the targets and 52-week range and on the company’s ability to achieve its targeted annual revenue growth of 10% to 13% through FY2029.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Equinix generated approximately $2.6 billion in revenue, $1.4 billion in gross profit, $479 million in net income, and $4.83 in earnings per share. Total revenue grew 16% and recurring revenue grew 11% year over year on a normalized and constant-currency basis. The closing of 134 megawatts of xScale contracts, including Hampton, contributed approximately $120 million in non-recurring fees. The adjusted earnings before interest, taxes, depreciation, and amortization margin also increased to 53%, or a year-over-year improvement of approximately 150 basis points when capacity-leasing fees are excluded.
Management said on July 29, 2026, that most of the largest deals in Q2 FY2026 were driven by artificial intelligence workloads. Use cases include private artificial intelligence infrastructure for open models, data sovereignty and location, training and batch inference, and latency-sensitive inference. Orion VM selected the platform for a private agentic artificial intelligence suite, while FCX AI partnered with it to build a sovereign inference node in Sydney. This opportunity is supported by an ecosystem that includes eight of the ten largest model providers and eight of the ten largest neocloud providers.
Automated analysis for informational purposes only — not investment advice.
The company targets revenue growth of 11% to 12% and adjusted funds from operations per-share growth of 10% to 12% in FY2026. It raised revenue guidance by $100 million, adjusted earnings before interest, taxes, depreciation, and amortization guidance by $62 million, and adjusted funds from operations guidance by approximately $50 million. It expects an adjusted earnings before interest, taxes, depreciation, and amortization margin of approximately 51%, up 200 basis points from the prior fiscal year. It also raised its capital-spending plan, excluding real-estate acquisitions and xScale, to a range of $5 billion to $6 billion.
From FY2027 through FY2029, the company expects annual revenue growth of 10% to 13%, beginning near the low end and then accelerating as new capacity comes online. It targets annual adjusted funds from operations per-share growth of 9% to 12% and an adjusted earnings before interest, taxes, depreciation, and amortization margin of at least 53% by FY2029. This requires annual capital expenditures of $5 billion to $7 billion, with more than 80% of expansion allocated to its top 25 metropolitan markets. By the end of the planning period, management expects approximately two gigawatts to remain available from its land and power inventory, with the incremental plan using approximately 0.3 gigawatts.
Available liquidity was approximately $7.7 billion in Q2 FY2026, and net leverage was 3.6 times annualized adjusted earnings before interest, taxes, depreciation, and amortization. The company intends to fund growth through retained cash flow and debt, with a payout ratio of approximately 50%. It expects leverage to increase by approximately one turn and its blended cost of capital to rise by approximately 150 basis points through the end of FY2029. On August 7, 2026, news reports cited an expanded $5.50 billion revolving credit facility to support liquidity and long-term projects.
On August 6, 2026, Equinix signed a 20-year agreement with Central Georgia Electric to fund electrical infrastructure for a new project in Hampton, Georgia. The agreement includes a new substation and transmission lines, with the company bearing the engineering and capital-expenditure costs instead of local utility ratepayers. The agreement supports data center expansion in a market where power must be secured before capacity can be added. However, it also highlights that executing the $5 billion to $7 billion annual spending plan from FY2027 through FY2029 depends on continued access to power, permits, and grid infrastructure.
