Latest news with #EQIX
Yahoo
31-07-2025
- Business
- Yahoo
Equinix Inc (EQIX) Q2 2025 Earnings Call Highlights: Record Growth and Strategic Expansions
Revenue: $2.26 billion, up 5% year-over-year. Recurring Revenue Growth: Up 7% year-over-year. Adjusted EBITDA Margin: 50% of revenues. AFFO per Share: Increased 8% year-over-year. Annualized Gross Bookings: $345 million for the quarter. Interconnection Revenue Growth: 8% year-over-year, crossing $400 million quarterly. Net Interconnection Additions: 6,200 total net interconnections for the quarter. Capital Expenditures: Approximately $990 million for the quarter. Stabilized Asset Utilization: 82% utilized, generating a 26% cash-on-cash return. 2025 Revenue Guidance Increase: Raised by $58 million. 2025 Adjusted EBITDA Guidance Increase: Raised by $46 million. 2025 AFFO Guidance Increase: Raised by $28 million. 2025 CapEx Guidance: Expected to range between $3.8 billion and $4.3 billion. Warning! GuruFocus has detected 6 Warning Signs with EQIX. Release Date: July 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Equinix Inc (NASDAQ:EQIX) reported strong financial performance in Q2 2025, with revenues, adjusted EBITDA, and AFFO all meeting or exceeding expectations. The company achieved a significant milestone with adjusted EBITDA margins reaching 50% for the first time in its history. Equinix Inc (NASDAQ:EQIX) closed 4,100 deals across more than 3,300 customers, resulting in $345 million of annualized gross bookings for the quarter. Interconnection revenues grew by 8% year-over-year, surpassing $400 million in quarterly revenues for the first time. The company is actively expanding its global footprint with 59 major projects underway, including 12 xScale projects, and has finalized the acquisition of three data centers in the Philippines. Negative Points Equinix Inc (NASDAQ:EQIX) experienced a higher MRR churn rate of 2.6% in Q2, slightly above the high end of their range, primarily due to a bankruptcy. Non-recurring revenues decreased due to lower xScale fees, which was expected but still impacted overall revenue growth. The company's capital expenditures are expected to increase significantly, ranging between $3.8 billion and $4.3 billion for 2025, which may impact cash flow. The xScale transactions are described as inherently lumpy, with dependencies on RFS delivery dates, which could lead to variability in financial performance. Equinix Inc (NASDAQ:EQIX) faces challenges in accelerating the timing to stabilization for new developments, with supply chain and energy access being potential constraints. Q & A Highlights Q: It was great to see the interconnection adds step back up this quarter, but they've had a bit of a sawtooth pattern over the past couple of years. Could you dig a bit more into what helped this quarter and what we should expect over the coming quarters for that metric? A: Adaire Fox-Martin, President, CEO, and Director: This quarter, we saw strong interconnection performance with revenues up 8% year-on-year, driven by cloud and AI expansion opportunities. Our ecosystem of cloud and AI customers is securing their network presence to support future workloads. We expect to continue growing this part of our business. Q: I was interested in the comment on the strong bookings momentum to start the third quarter. Is this seasonality, sales incentives, or product appeal? A: Adaire Fox-Martin, President, CEO, and Director: The momentum is due to a broad-based set of activities across regions, customers, and segments, with strong pricing and intra-regional pickup. We are focused on growth, and our Q3 bookings are setting us up for recurring revenue momentum in 2026. Q: You mentioned accelerating the timing to stabilization in your build bolder plan. Could you update us on how quickly you can stabilize properties you're planning to develop? A: Adaire Fox-Martin, President, CEO, and Director: We aim to accelerate stabilization by building in fewer phases and seeing larger footprint requirements from enterprise customers. Pre-sales activity will also help de-risk the investment process. Q: On the CapEx guidance, was it increased to accelerate investments for quicker capacity delivery? A: Keith Taylor, CFO: We are pre-buying equipment to deliver capacity quickly, despite supply chain and energy access challenges. Our team is focused on delivering against ready-for-service dates and accelerating where possible. Q: Can you provide more color on the demand signals from customers that support the build bolder initiative? A: Adaire Fox-Martin, President, CEO, and Director: We see trends towards distributed workloads, cloud activity, and increased density in data centers. Customers demand AI-oriented workloads with data privacy, secure interconnection, and neutrality, which our build bolder strategy addresses. Q: On the capitalization of interest, why wasn't it done before, and what impact could it have going forward? A: Keith Taylor, CFO: We have capitalized interest before, but with more assets under development and higher debt costs, it will be a bigger component going forward. We are optimizing our AFFO per share by managing funds judiciously. Q: What are the opportunities to improve MRR churn over time, and how does it relate to analytics developments? A: Adaire Fox-Martin, President, CEO, and Director: We aim to manage churn by ensuring capacity on our platform to deliver against bookings. We have improved insights into churn and are focused on driving growth to reach a steady state at the lower end of our churn range. Q: Could you update us on your outlook for xScale leasing in the back half of the year and into 2026? A: Adaire Fox-Martin, President, CEO, and Director: Our xScale pipeline supports a step-up in NRR in the second half, with many conversations for capacity in late '26 and beyond. xScale is critical for our product continuum, supporting hyperscaler capacity and increasing retail footprints. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-07-2025
- Business
- Yahoo
Equinix (EQIX) Rises Higher Than Market: Key Facts
Equinix (EQIX) closed at $789.19 in the latest trading session, marking a +1.47% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.14% for the day. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.38%. Shares of the data center operator have depreciated by 11.9% over the course of the past month, underperforming the Finance sector's gain of 4.07%, and the S&P 500's gain of 5.35%. Market participants will be closely following the financial results of Equinix in its upcoming release. The company plans to announce its earnings on July 30, 2025. The company's earnings per share (EPS) are projected to be $9.19, reflecting a 0.33% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.26 billion, reflecting a 4.46% rise from the equivalent quarter last year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $37.75 per share and a revenue of $9.2 billion, representing changes of +7.8% and +5.21%, respectively, from the prior year. Investors should also take note of any recent adjustments to analyst estimates for Equinix. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.27% lower. Equinix presently features a Zacks Rank of #3 (Hold). From a valuation perspective, Equinix is currently exchanging hands at a Forward P/E ratio of 20.6. This represents a premium compared to its industry average Forward P/E of 13.23. Meanwhile, EQIX's PEG ratio is currently 1.28. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the REIT and Equity Trust - Retail industry stood at 2.91 at the close of the market yesterday. The REIT and Equity Trust - Retail industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 38% of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Equinix, Inc. (EQIX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Bloomberg
21-07-2025
- Business
- Bloomberg
Stock Movers: Microsoft, Equinix, Domino's
On this episode of Stock Movers: - Microsoft (MSFT) shares fall after the company warned that hackers are actively targeting customers of its document management software SharePoint, with security researchers flagging the risk of potentially widespread breaches around the world. - Equinix (EQIX) shares rise. Elliott Investment Management has built up its stake in Equinix and is pushing the company to take steps to boost its share price, people with knowledge of the matter said. - Domino's (DPZ) shares climb after the restaurant operator reported second-quarter comparable sales growth that topped Wall Street expectations.
Yahoo
18-07-2025
- Business
- Yahoo
Earnings Preview: What to Expect From Equinix's Report
Equinix, Inc. (EQIX), headquartered in Redwood City, California, operates as a real estate investment trust. With a market cap of $74.9 billion, the company invests in interconnected data centers. Equinix focuses on developing a network- and cloud-neutral data center platform for cloud and information technology, enterprise, network, and mobile services providers, as well as financial companies. The world's digital infrastructure company is expected to announce its fiscal second-quarter earnings for 2025 after the market closes on Wednesday, Jul. 30. Ahead of the event, analysts expect EQIX to report an FFO of $8.08 per share on a diluted basis, down 12.4% from $9.22 per share in the year-ago quarter. The company has consistently surpassed Wall Street's FFO estimates in its last four quarterly reports. More News from Barchart Insider Trading Alert: Here's Who Bought Nvidia and AMD Stock Before the U.S. Chip Deal with China Dear Tesla Stock Fans, Mark Your Calendars for July 23 Robinhood Keeps Hitting New Highs. How Should You Play HOOD Stock Here? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For the full year, analysts expect EQIX to report FFO of $33.53 per share, down 4.3% from $35.02 per share in fiscal 2024. However, its FFO is expected to rise 6.3% year-over-year to $35.64 in fiscal 2026. EQIX stock has underperformed the S&P 500 Index's ($SPX) 12.7% gains over the past 52 weeks, with shares down 3.4% during this period. Similarly, it underperformed the Real Estate Select Sector SPDR Fund's (XLRE) 2% gains over the same time frame. On Apr. 30, EQIX shares closed up more than 1% after reporting its Q1 results. Its FFO of $9.67 per share surpassed Wall Street estimates of $8.96 per share. The company's revenue was $2.23 billion, exceeding Wall Street forecasts of $2.22 billion. The company expects full-year FFO in the range of $37.36 to $38.17 per share, and expects revenue to be between $9.2 billion and $9.3 billion. Analysts' consensus opinion on EQIX stock is bullish, with an overall 'Strong Buy' rating. Out of 29 analysts covering the stock, 22 advise a 'Strong Buy' rating, two suggest a 'Moderate Buy,' and five give a 'Hold.' EQIX's average analyst price target is $952.69, indicating a potential upside of 22.8% from the current levels. On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
03-07-2025
- Business
- Business Insider
TD Cowen Sticks to Its Buy Rating for Equinix (EQIX)
TD Cowen analyst Gregory Williams reiterated a Buy rating on Equinix today and set a price target of $974.00. The company's shares opened today at $797.69. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Williams covers the Communication Services sector, focusing on stocks such as AT&T, Charter Communications, and T Mobile US. According to TipRanks, Williams has an average return of -2.9% and a 47.37% success rate on recommended stocks. In addition to TD Cowen, Equinix also received a Buy from Goldman Sachs's James Schneider in a report issued yesterday. However, on June 29, BMO Capital maintained a Hold rating on Equinix (NASDAQ: EQIX). EQIX market cap is currently $77.8B and has a P/E ratio of 82.64. Based on the recent corporate insider activity of 76 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EQIX in relation to earlier this year. Most recently, in May 2025, Raouf Abdel, the EVP, Global Operations of EQIX sold 1,316.00 shares for a total of $1,144,920.00.
