EQUINIX INC (EQIX) Q3 2025 Earnings Summary

Executive Summary

Equinix delivered a solid Q3: revenue grew 5% YoY to $2.316B, operating margin expanded to 20%, adjusted EBITDA rose to $1.148B (50% margin), and AFFO reached $965M; record annualized gross bookings of $394M and interconnection revenue of $422M underpinned demand strength .
Versus S&P Global consensus, GAAP diluted EPS beat ($3.81 vs $3.60*), FFO/share beat ($7.20 vs $6.99*), while revenue was roughly in line to slightly below ($2.316B vs $2.327B*) as lower non‑recurring fees offset recurring strength .
Values marked with * retrieved from S&P Global.
FY25 guidance: revenue maintained at $9.208–$9.328B (FX headwind), while adjusted EBITDA and AFFO were raised (underlying) on better operating flow‑through and lower net interest expense; Q4 revenue guide implies a ~7% q/q step‑up with a large non‑recurring xScale component (timing risk) .
Stock reaction catalyst: high bookings/pre‑sales momentum and firm pricing (+$41 MRR/cabinet q/q) vs. the binary timing of a significant xScale non‑recurring transaction embedded in Q4 guidance range .

What Went Well and What Went Wrong

What Went Well

Record demand and pipeline: annualized gross bookings hit a record $394M (+25% YoY; +14% q/q), with $185M in pre‑sold annualized gross bookings for delivery beyond 90 days, and >40% of Q4 plan already closed entering the quarter .
Profitability and capital discipline: adjusted EBITDA rose 10% YoY to $1.148B (50% margin), AFFO grew 11% YoY to $965M, helped by strong operations and lower net interest; FY25 adjusted EBITDA and AFFO guidance were raised (underlying) .
Interconnection leadership and pricing: interconnection revenue grew to $422M (+10% YoY as‑reported), net interconnection adds were 7,100 (total >499k), and management emphasized “very firm” pricing and rising densities .

What Went Wrong

Non‑recurring revenue softness in Q3: sequential moderation in non‑recurring revenues (notably lower xScale fees) tempered total revenue vs consensus despite a meaningful recurring step‑up .
Regional/one‑off variability: EMEA profitability had unusual year‑to‑year swings (~$20M effect across periods) from xScale transaction timing; underscores quarterly noise by region .
Elevated capex/FCF drag amid acceleration: total capex of ~$1.14B in Q3 and accelerated land/program spend (3 GW developable capacity) depressed free cash flow; FY25 total capex remains $3.79–$4.29B .

Financial Results

Core P&L vs prior periods

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($B)	$2.201	$2.256	$2.316
GAAP Diluted EPS ($)	$3.10	$3.75	$3.81
Operating Income ($M)	$425	$494	$474
Operating Margin (%)	19% (calc)	22% (calc)	20%
Adjusted EBITDA ($B)	$1.048	$1.129	$1.148
Adj. EBITDA Margin (%)	48%	50%	50%
AFFO ($M)	$866	$972	$965
AFFO/share, diluted ($)	$9.05	$9.91	$9.83

Notes: Operating margin Q3’25 per company 20% .

Results vs S&P Global consensus (Q3 2025)

Metric	Consensus*	Actual (Company)	Surprise
Revenue ($B)	$2.327*	$2.316	-$0.011B (~-0.5%)*
GAAP Diluted EPS ($)	$3.60*	$3.81	+$0.21*
FFO/share, diluted ($)	$6.99*	$7.20	+$0.21*

Values marked with * retrieved from S&P Global.

Segment and product revenue mix

Segment/Product Revenue ($M)	Q3 2024	Q2 2025	Q3 2025
Americas total	$958	$1,004	$1,035
EMEA total	$743	$767	$784
Asia-Pacific total	$500	$485	$497
Interconnection (Worldwide)	$384	$407	$422
Colocation (Worldwide)	$1,520	$1,585	$1,637

KPIs

KPI	Q2 2025	Q3 2025
Net interconnection adds (#)	6,200	7,100
Total interconnections (approx)	492,000+	499,000+
Annualized gross bookings ($M)	345	394
Pre‑sold annualized gross bookings ($M)	—	185
MRR YoY growth	—	+8% YoY (reported & normalized)
MRR churn	—	2.3% (Q3)
MRR per cabinet yield q/q	—	+$41 (normalized, CC)
Cabinets billing net adds (#)	—	+2,500

Guidance Changes

Metric	Period	Previous Guidance (Q2’25)	Current Guidance (Q3’25)	Change
Revenue	FY25	$9.233–$9.333B	$9.208–$9.328B	Maintained underlying; -$15M FX
Adjusted EBITDA	FY25	$4.517–$4.597B (~49%)	$4.531–$4.611B (~49%)	Raised underlying +$21M; -$7M FX
AFFO	FY25	$3.703–$3.783B	$3.731–$3.811B	Raised underlying +$31M; -$3M FX
AFFO/share (diluted)	FY25	$37.67–$38.48	$37.95–$38.77	Raised
Recurring Capex	FY25	$272–$292M (~3% rev)	$278–$298M (~3% rev)	Raised underlying +$7M; -$1M FX
Non‑recurring Capex (incl. xScale)	FY25	$3.520–$4.000B	$3.514–$3.994B	Slightly lowered on FX
Expected Cash Dividends	FY25	~$1.836B	~$1.836B	Maintained
Revenue	Q4’25	—	$2.411–$2.531B	n/a
Adjusted EBITDA	Q4’25	—	$1.187–$1.267B (49–50%)	n/a

Q4 commentary: ~7% q/q revenue step‑up at midpoint; range widened given a large non‑recurring xScale transaction whose timing could slip to Q1’26 .

Earnings Call Themes & Trends

Topic	Q1 2025 (prior)	Q2 2025 (prior)	Q3 2025 (current)	Trend
AI/technology initiatives	NVIDIA DGX SuperPOD at Equinix; Block deploying GB200 at EQIX; growing Groq footprint	Fabric capacity >100 Tbps; AI inference use cases broaden	Launched Distributed AI solution (AI‑ready backbone, AI Solutions Lab, Fabric Intelligence) with partners (NVIDIA, Dell, Groq, etc.)	Accelerating
Capacity/Build Bolder	56 major projects; >70% retail capex to large metros	59 major projects; nine added; Manila acquisition	58 major projects; land in AMS/CHI/JNB/LON/TOR; ~3 GW developable capacity; target to double by 2029	Scaling
Interconnection	+7–9% YoY; strong Fabric Router adoption	Interconnection revenue >$400M; +9% YoY	Interconnection revenue $422M (+10% YoY); +7,100 net adds; >499k total	Strengthening
Pricing	—	—	Pricing “very firm”; higher densities; MRR/cabinet +$41 q/q (normalized, CC)	Firming
Pre‑sales/Bookings	—	$345M annualized gross bookings; 4,100 deals	Record $394M; pre‑sold $185M (12‑mo retail pre‑sell window)	Improving
xScale pipeline	12 projects; >85% leased/pre‑leased	12 projects; non‑recurring fees timing affects quarters	Large potential 240 MW transaction drives Q4 range; aiming to close in Q4	Binary timing
Power strategy	Green bond issuance; PPA in Japan	$9.5B green bonds issued; allocation report published	12 xScale projects have power secured; advancing power strategy incl. next‑gen nuclear/on‑site generation	De‑risking

Management Commentary

“Our strong Q3 performance is a clear signal of accelerating momentum, for Q4 and into 2026… increasing our top-line revenue growth, improving profitability and scaling our metro‑proximate capacity.” – Adaire Fox‑Martin, CEO .
“Global Q3 revenues were approximately $2.32 billion, up 5%… recurring revenue growth stepped up 8%… As expected, our non‑recurring revenues moderated sequentially, largely due to lower xScale fees.” – Keith Taylor, CFO .
“We have recently extended the window for our sales team to be able to sell retail capacity ahead of delivery for the next 12 months… the pre‑sales opportunity… gives our sales team critical capacity to sell into.” – CEO .
“We’re certainly not seeing any dilution in our pricing. Very firm.” – CEO .
“All of our current 12 [xScale] projects all have power secured. Power is not a constraint on the 12 xScale under development scenarios.” – CEO .

Q&A Highlights

Pre‑sales and visibility: Retail pre‑sell window extended to 12 months, driving $185M pre‑sold annualized bookings and improved visibility; capacity constrained metros (e.g., Frankfurt, London, New York) seeing notable pre‑leasing .
Revenue guide breadth: Q4 guidance widened mainly due to a large non‑recurring xScale fee; roughly two‑thirds of the ~$90M non‑recurring step‑up relates to that potential transaction (240 MW full build opportunity), introducing timing risk .
Pricing/tone: Pricing “very firm,” supported by tight supply, rising densities, and interconnection pull‑through; management confident in Q4 execution and 2026 setup .
Power availability: All 12 active xScale projects have secured power; land deals pursued with power arrangements and utility partnerships to de‑risk delivery .

Estimates Context

Q3 vs S&P Global consensus: EPS beat ($3.81 vs $3.60*), FFO/share beat ($7.20 vs $6.99*), revenue roughly in line to slightly below ($2.316B vs $2.327B*), reflecting strong recurring flow‑through offset by lower non‑recurring fees .
Values marked with * retrieved from S&P Global.
Implications: Street models may lift FY25 adjusted EBITDA/AFFO on raised guidance and operating outperformance, while revenue adjustments hinge on Q4’s large non‑recurring xScale fee timing that management aims to close in Q4 but acknowledges could slip .

Key Takeaways for Investors

Demand backdrop robust: Record $394M annualized gross bookings, $185M pre‑sold, and +8% YoY MRR growth point to durable top‑line momentum into 2026 .
Profitability compounding: 50% adj. EBITDA margin in Q3; FY25 adj. EBITDA guidance raised with ~250 bps YoY margin expansion expected for the year .
Interconnection flywheel: $422M interconnection revenue (+10% YoY), 7,100 net adds, and firm pricing underpin yield and stickiness .
Capacity optionality: ~3 GW developable capacity and 58 projects in flight (12 xScale) position EQIX to meet AI and non‑AI demand; power secured for active xScale builds reduces execution risk .
Near‑term trading setup: Q4 outcome hinges on closing a large xScale non‑recurring fee; a close in Q4 is a positive catalyst, whereas slippage to Q1’26 likely elongates realization without impairing fundamentals .
Capital and dividend: FY25 capex $3.79–$4.29B to fund growth; quarterly dividend declared at $4.69/share (Dec 17 payment) and ~$1.836B expected cash dividends for FY25 maintained .
Watch regional/one‑offs: EMEA profitability can swing with xScale transaction phasing; underlying pricing and utilization trends remain constructive across regions .

Appendix: Additional Disclosures and Data Sources

Q3 2025 8‑K press release, financial statements, non‑GAAP reconciliations, and guidance .
Q3 2025 earnings call transcript (prepared remarks and Q&A) .
Q2 2025 and Q1 2025 8‑K press releases for trend analysis .
Dividend press release (Oct 29, 2025): $4.69/share quarterly dividend .
S&P Global consensus figures used for estimate comparisons (values marked with *) retrieved from S&P Global.