EQIX · Q1 2026 Earnings

Bullish

Equinix

Reported April 29, 2026

30-second summary

Q1 revenue of $2.444B (+10% YoY) printed ~$72M below the prior Q1 guide midpoint of $2.516B (~$52M below the low end of $2.496B), but the headline gap is a timing shift, not a miss: the xScale Hampton lease (~$80M of revenue, ~$65M of AFFO, ~$0.65/share) moved from Q1 into Q2 as management negotiates expanded terms with the customer. Adjusted for Hampton, Q1 revenue, AFFO and AFFO/share were all above the midpoint of guidance. Management then raised FY2026 revenue, EBITDA, and AFFO on top of that Hampton-neutral baseline, and tightened the growth band from 9–10% to 10–11%. MRR grew 12% as-reported (10% normalized constant currency) for the second consecutive double-digit quarter, annualized gross bookings hit $378M (+9% YoY, the largest Q1 ever), and total sales activity (bookings plus a record ~$140M of pre-sales) was up 35% YoY to a company record. The FY raise one quarter in is the signal.

Headline numbers

EPS

Q1 FY2026

$10.79

Revenue

Q1 FY2026

$2.44B

+10.0% YoY

Gross margin

Q1 FY2026

51.4%

Free cash flow

Q1 FY2026

$-0.60B

Operating margin

Q1 FY2026

23.6%

Key financials

Q1 FY2026

Metric	Q1 FY2026	YoY	Q4 FY2025	QoQ
Revenue	$2.44B	+10.0%	$2.42B	+1.0%
EPS	$10.79	—	$2.69	+301.1%
Gross margin	51.4%	—	50.5%	+90bps
Operating margin	23.6%	—	17.4%	+620bps
Free cash flow	$-0.60B	—	—	—

Guidance

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q1 FY2026	$2.496 - $2.536 billion	$2.444 billion	-$0.052 billion below guide	Beat
Adjusted EBITDA	Q1 FY2026	$1.283 - $1.323 billion	$1.303 billion	in-line	Met
Adjusted EBITDA Margin	Q1 FY2026	51 - 52%	51%	at bottom of range	Met

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Revenue	FY 2026	$10.123 - $10.223 billion	$10.144 - $10.244 billion	+$21 million at midpoint (+100bps growth rate)	Raised
Adjusted EBITDA	FY 2026	$5.141 - $5.221 billion	$5.165 - $5.245 billion	+$24 million at midpoint	Raised
AFFO	FY 2026	$4.158 - $4.238 billion	$4.198 - $4.278 billion	+$40 million at midpoint	Raised
AFFO per Share	FY 2026	$41.93 - $42.74	$42.31 - $43.11	+$0.38 at midpoint (+0.9%)	Raised
Total Capital Expenditures	FY 2026	$3.655 - $4.155 billion	~$4.100 billion	Narrowed from wide range to tight point guidance (~$4.1B, midpoint of prior range)	Lowered
Non-recurring Capital Expenditures	FY 2026	$3.385 - $3.865 billion	~$3.800 billion	-$32.5 million at midpoint	Lowered

Reaffirmed unchanged this quarter: Adjusted EBITDA Margin (~51%)

Segment KPIs

Q1 FY2026

Segment	Q1 FY2026	YoY
Colocation	$1.73B	+12.0%
Interconnection	$0.446B	+13.5%
Managed Infrastructure	$0.115B	—
Stabilized Assets Revenue Growth (YoY)	9% as-reported; 6% constant currency	—

Other KPIs

Q1 FY2026

Segment	Q1 FY2026	YoY
Americas	$1.091B	+9.0%
EMEA	$0.827B	+11.3%
Asia-Pacific	$0.526B	+9.4%
Monthly Recurring Revenue Growth (YoY)	12% as-reported; 10% normalized & constant currency	—
Annualized Gross Bookings	$378 million	—
Annualized Presales	~$140 million (record)	—
Adjusted EBITDA Margin	51%	—
Cash Gross Margin	69%	—
Cash-on-Cash Returns	26%	—
AI-Related Deal Concentration	~60% of largest deals	—

Management tone

Narrative arc: Build Bolder pivot (Q2 FY2025) → Booked-and-priced re-acceleration (Q4 FY2025) → Ecosystem-as-architecture claim (Q1 FY2026)

From AI-as-dominant-deal-type to AI-as-architecture-problem-only-Equinix-solves. A year ago AI was a customer pilot story; two quarters ago it was 50–60% of large deals; this quarter management reframed it as a structural deployment-gap problem that Equinix's ecosystem is uniquely positioned to solve. "Performance, cost, and compliance all suffer when today's agents run on yesterday's networks... This deployment gap is an architecture problem." The shift matters because it moves Equinix from "beneficiary of AI demand" (cyclical) to "required infrastructure for agentic AI" (structural) — and justifies the premium pricing posture management has been defending without quantifying.

From Fabric-as-growing-line-item to Fabric-as-the-moat. In Q4 FY2025 management cited Fabric reaching 500,000+ interconnections. This quarter Fabric is positioned as the structural competitive advantage: "Fabric Intelligence is built directly into our Fabric interconnection platform. This is a structural competitive advantage given the more than 500,000 live interconnections across our ecosystem." Fabric revenue +26% and bookings +70% (NCC) are running at multiples of total interconnection growth — the embedded-intelligence layer is the new differentiation pitch, not raw cabinet count.

From "we see a path" to "we are claiming the market." Two quarters ago double-digit growth was an aspiration; one quarter ago it was guided; this quarter it was raised one quarter into the fiscal year. "This is our second straight quarter of double-digit MRR growth... we have raised our guidance across several key metrics." The cadence — raise the FY guide in Q1 FY2026 — is itself the signal. Equinix has historically waited until mid-year to take up the FY range.

From capacity-as-margin-lever to capacity-as-already-pre-sold. The Q4 FY2025 framing was that the build-out could absorb expansion drag while still expanding margins. This quarter management disclosed 46 major projects across 32 markets with ~25% of 2026 retail capacity already pre-sold and a record $140M in annualized pre-sales. The capex point estimate ($4.1B total, $3.8B non-recurring) at the top of the prior range — not the midpoint — confirms management is leaning into expansion, not pacing it.

From hedging on pricing magnitude to firm pricing as a stated condition. Last quarter management deflected the BofA question on price-increase magnitude. This quarter management volunteered that pricing remains firm on both pre-sales and in-quarter bookings, and explicitly framed pre-leasing as a customer-driven mechanism rather than a discount tool. Still no quantitative pricing disclosure — that watch item remains open.

Recurring themes management leaned on this quarter:

Agentic AI and inferencing requiring purpose-built distributed infrastructureEnterprise-wide AI adoption at scale replacing pilot phaseSustained double-digit MRR growth momentumFabric interconnection as a structural competitive moatRecord sales activity (35% YoY growth) and backlog expansionAggressive capacity expansion with pre-sales traction

Risks management surfaced:

Regulatory and closing conditions on Nord acquisition dealEnergy price volatility mitigated by 90%+ hedging for 2026Customer churn tracking to low end of guidance range (1.7% in Q1)Enterprise architecture fragmentation requiring ongoing innovationExecution risk on 46 concurrent major capacity projects across 32 markets

Q&A highlights

Michael Rollins · Citi

Clarification on the 110 separate network nodes deployed by AI model providers and neoclouds at Equinix—are these in addition to existing hyperscaler nodes, and what types of interconnectivity demand are emerging for these AI nodes?

The 110 nodes are in addition to hyperscaler deployments. Neoclouds are transitioning from training-focused GPU access to AI inference workloads targeting enterprise and medium-sized SaaS customers. Three primary use cases identified: connectivity nodes for CSPs/NSPs, AI inference nodes in dense metros, and fabric access to enterprise customers.

110 separate network nodes deployed by 8 of 10 AI model providers and 4 of 5 neocloudsNodes are additional to existing hyperscaler connectivity nodesNeoclouds shifting from training to inference workloadsThree use case categories: CSP/NSP connectivity, metro inference nodes, enterprise fabric access

Cameron McVey · Morgan Stanley

Details on the $140 million in pre-leasing activity—how is tenant appetite changing, are tenants committing longer in advance, and what are the implications for pricing, terms, and deposits?

Pricing remains firm on both pre-sales and in-quarter bookings. Pre-leasing provides customers with infrastructure security and helps them solve compute and energy future planning. Management sees long-term customer relationship benefits from this practice.

$140 million in pre-leasing activityPricing remains firm across pre-sales and quarterly bookingsPre-leasing enables customer security and long-term infrastructure planning

Frank Lauben · Raymond James

Are there differences in incremental capital required for AI inferencing workloads versus traditional workloads, and can these be quantified?

No material difference in capital requirements. Strategy remains metro-focused (77 metros globally). New facilities under development will feature higher densities suited to customer requirements, but returns remain in the mid-20s percent range despite higher density builds.

No difference in capital requirements between AI inference and traditional workloads77 metros currently in footprintHigher density facilities under developmentMid-20s percent returns maintained despite higher density requirements

Vikram Malhotra · Mizuho

Sequential decline in bookings: how much is seasonal versus composition of enterprise vs. chunky deals? And how does rapid Fabric business growth (tripling) translate to interconnection revenue growth and future composition?

Q1 is seasonally lower but was strongest Q1 ever with largest backlog. Growth occurred across industries and under-1MW deal cohort. Interconnection revenue grew 9% (normalized/constant currency), Fabric revenue grew 26%, Fabric bookings grew 74% YoY. Growth driven by distributed hub and Fabric Intelligence investment.

Largest Q1 ever achieved despite seasonal weaknessLargest backlog ever recordedInterconnection revenue growth: 9% (normalized, constant currency)Fabric revenue growth: 26%

Michael Ng · Goldman Sachs

Are customers repatriating workloads from public cloud back to edge/co-location? What is the customer decision tree between co-located data centers and on-premises as agentic workloads move to the edge?

Customers operate in hybrid multi-cloud environments. While some data repatriation occurs due to sovereignty and compliance concerns (particularly in Europe), this is not broad-based. The conversation is less about on-prem vs. cloud and more about navigating token management, cost, and compliance across environments using distributed AI hubs and private SLMs.

Hybrid multi-cloud environment remains dominant paradigmRepatriation driven by sovereignty and compliance legislation (particularly Europe)Conversation centers on token management, cost optimization, and data governanceEquinix positioned as neutral platform for multi-cloud and private SLM access

Answers to last quarter's watch list

Q1 FY2026 EBITDA margin at 51–52% — Q1 FY2026 landed at 51%, a record adjusted EBITDA margin, +190bps QoQ and +300bps YoY. At the low end of the guided range, but the absolute level is a company record. FY2026 margin guide reaffirmed at ~51% (~200bps YoY expansion).

Resolved positively

MRR growth pacing toward FY2026 guide of +8–10% — Q1 FY2026 MRR grew 12% as-reported and 10% normalized constant currency, at the top of the band. Q2 FY2026 guided +10–11% YoY, suggesting management expects to hold the top end.

Resolved positively

Pre-sales conversion above Q4 FY2025 record of $474M — Annualized gross bookings printed $378M (+9% YoY, largest Q1 in company history), below the Q4 FY2025 record but seasonally explained. Annualized pre-sales of $140M was a record, and total sales activity (bookings + pre-sales) was up 35% YoY to a company record.

Resolved positively

Capex midpoint trajectory — FY2026 capex tightened from a $500M range ($3.655–$4.155B) to a point estimate of ~$4.1B, sitting at the top of the prior range, not the midpoint. Non-recurring capex similarly tightened to ~$3.8B (top of prior $3.385–$3.865B). Recurring capex also raised to $280–$300M from $270–$290M. Management is leaning into the build, not pacing it. Status: Resolved (capex landing higher than midpoint of prior range)

AI deal share — ~60% of largest deals, flat vs Q4 FY2025. The share has stabilized rather than continuing to rise — consistent with the "natural ceiling" scenario flagged last quarter.

Continue monitoring

Pricing magnitude disclosure — Management again declined to quantify price increases, instead asserting "pricing remains firm." The credibility risk flagged last quarter persists.

Not resolved

What to watch into next quarter

Q2 FY2026 revenue clearing $2.591B midpoint, ideally above $2.611B: Q2 FY2026 guidance already absorbs the Hampton ~$80M shift from Q1 FY2026. A landing below midpoint would force a question about whether the FY guide raise is supported by run-rate or back-half loaded.

MRR growth holding 10%+ normalized constant currency: Q2 FY2026 is guided +10–11% YoY. A print at the low end (10%) would suggest the double-digit MRR run is plateauing; above 11% would validate the structural re-acceleration.

Fabric bookings growth sustaining above 50% YoY: this quarter ran +70% (or +74% in Q&A). Watch whether the Fabric-as-moat thesis is supported by sustained bookings growth or decelerates as the comp base lifts.

Pre-sales activity above $140M: management called this a record. A back-to-back record would confirm capacity is being absorbed faster than the FY revenue raise implies, setting up another guide raise at Q2 FY2026.

Q2 FY2026 EBITDA margin landing within the new 52–53% guide: a step-up from the Q1 FY2026 51–52% guide and the Q1 FY2026 51% print. A print at the high end would extend the record-margin story; the low end would suggest expansion drag is starting to bite.

Churn holding below 2.0%: Q1 FY2026 at 1.7% is the cleanest print in recent memory. A move back above 2.0% would signal Q1 FY2026 was helped by timing rather than a structural improvement in retention.

Pricing magnitude disclosure at the next investor event: third consecutive deflection on the pricing magnitude question. If FY2026 revenue growth disappoints relative to the new 10–11% guide, the absence of pricing disclosure becomes the credibility issue.

atNorth acquisition closing and accretion disclosure: management described the deal as "expected to be immediately accretive" subject to closing conditions — watch for the closing date and quantified accretion in Q2 FY2026.

Sources

Equinix Q1 FY2026 press release / 8-K, April 29, 2026 — SEC filing: https://www.sec.gov/Archives/edgar/data/1101239/000110123926000089/eqix-q126xpr.htm
Equinix Q1 FY2026 earnings call transcript

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