Oct 28, 2026 earnings call — Strong demand, pricing and capacity expansion
Company raised 2026 total revenue guidance by $100 million to approximately 12% growth year-over-year.
Revenue $2.6B (est $2.6B) · EPS $4.93 (est $4.11)
Key quotes
"Monthly recurring revenue grew 11% on a normalized and constant currency basis, our fourth straight quarter of double-digit growth."
"We have 3 gigawatts of developable capacity, which includes our projects currently in progress."
"We have 4.1x net leverage, $9.1 billion of available liquidity, a 3.2 percentage blended in-place borrowing rate primarily fixed with an average maturity over 6 years, access to lower cost capital globally to fund growth."
Analyst Q&A 10
gross bookings and atNorth inclusion
Q (David Guarino · Green Street): Is the >$0.5 billion annualized gross bookings an outlier or sustainable, and was the atNorth portfolio included in the 3Q figures?
A: Management defined annualized gross bookings as bookings expected to convert to revenue within 90 days and said this was their first milestone past $0.5 billion with presales driving 38% year-on-year growth. They said momentum is strong with 60% of Q4 target already closed. They confirmed atNorth was not included and will be equity accounted with no impact on the discussed numbers.
"So David, atNorth was not part of those statistics." — Olivier Leonetti (CFO)
pricing and interconnection revenue
Q (Aryeh Klein · BMO): How big is the pricing opportunity, would consumption-based cross-connects add incremental upside beyond renewal pricing, and what could stabilized recurring revenue growth look like with pricing levers?
A: They said pricing depends on the value delivered and the market is capacity-constrained, which is creating durable pricing strength. New deal pricing grew 12% year-on-year and they are proactively renewing and upselling the installed base; interconnection is an important revenue differentiator and they launched new interconnection products to expand packaging and pricing options.
"And as you can see, that was a 12% growth year-on-year this quarter." — Adaire Fox-Martin (CEO)
MRR churn and portal transactions
Q (Michael Rollins · Citi): What is driving the quarterly decline in MRR churn and what churn assumption underpins the long-term revenue growth guide? Also, what counts as a 'transaction' in the 25,000 figure and how should we view that volume?
A: They reported MRR churn of 1.7% this quarter, attributing it to strong execution on renewals and constrained capacity, and said they plan to use 2%–2.5% for guidance for the remainder of the year while noting they may do selective churns to mark-to-market pricing. The 25,000 transactions are mostly self-serve portal actions like simple extensions or cross-connects that extend reach, lower cost-to-serve, and scale the business.
"We have a number this quarter of 1.7%, and that follows on from similar numbers in previous quarters." — Adaire Fox-Martin (CEO)
long-term guide vs interest rates
Q (Eric Luebchow · Wells Fargo): Given strong bookings and higher interest rates, how should we think about landing in the lower versus upper half of the long-term guide in 2027 and beyond?
A: They said they are actualizing well against expectations with strong demand, pricing, controlled expenses and ahead-of-schedule capacity deliveries, so they view this as an execution question rather than a demand issue. They noted the outlook already assumed higher rates and said they believe they have cost of capital advantages and are confident about the long-term guide.
"Look, at a high level, we are actualizing exceptionally well against our expectations." — Adaire Fox-Martin (CEO)
project delays and margin levers
Q (Michael Funk · BofA): Are you seeing development delays and where, and what are the key opportunities and levers for further margin expansion?
A: They said market concerns include power availability, community sentiment and regulation, but Equinix builds smaller average megawatt projects, runs a diversified pipeline (48 builds in 32 cities) and can shift work between projects to manage delays; one Dubai project was delayed. They reiterated margin targets: expecting EBITDA margin up 2 points in 2026 and over 53% by 2029, with levers including pricing, SG&A improvements, standardization, automation and cost-to-build control.
"We are going to -- we expect to increase the EBITDA margin by 2 points in 2026 relative to last year." — Olivier Leonetti (CFO)
Fabric One and Inference Exchange
Q (Nicholas Del Deo · MoffettNathanson): Do Fabric One and the Inference Exchange anticipate market trends or respond to customer needs, and how might they help revenue growth over time?
A: They said these products both anticipate customer needs and reflect customer feedback from advisory boards. Fabric One automates and speeds networking tasks into minutes, and the Inference Exchange (with NVIDIA) provides an inferencing platform with access to over 200 open models; both enter beta this quarter with official launch next year and pricing/impact will be shared after GA.
"Fabric One is really about enhancing the platform." — Adaire Fox-Martin (CEO)
M&A and opportunistic deals
Q (Jonathan Petersen · Jefferies): Given disruption in project financing and a strong balance sheet, could Equinix act as a consolidator, especially on xScale?
A: They said the balance sheet will mainly fund their own growth and they expect to double capacity while only moderately increasing leverage, but they will be opportunistic if good opportunities arise. They added that any opportunistic activity would likely be oriented toward the retail side rather than xScale.
"We will be opportunistic if good opportunities are facing us." — Olivier Leonetti (CFO)
AI-driven protests: threat or opportunity
Q (David Barden · New Street): With rising local opposition tied to data centers and AI, is this more a threat or an opportunity for Equinix?
A: They said it could be both: Equinix typically builds lower-power footprints which eases utility delivery and they use innovative agreements (example: Georgia) to secure power while sharing costs with utilities. They added that cancelled projects by others would make capacity scarcer, which could support mark-to-market pricing, and noted 80% of their new capacity expansion is in metros where they have long-standing relationships and a diverse project set.
"I guess we could probably say it could be both." — Adaire Fox-Martin (CEO)
Q4 margins and neoclouds exposure
Q (Matthew Niknam · Truist): Why does Q4 EBITDA margin guide dip to 49%–50% from 51.4%, and how material are neoclouds to revenue and your approach given their credit risk?
A: They said neoclouds are an evolving but small cohort that add network and inference nodes and connect via Fabric, and that cohort represents less than 2% of MRR today while they apply strict credit protections. On margins, they said a Q4 dip versus the prior quarter is normal seasonality, and year-on-year EBITDA margin will be up 140 basis points.
"And even if I take the totality of the neo presence at Equinix today, in total, that cohort as a class represents less than 2% of our MRR." — Adaire Fox-Martin (CEO)
resources and supply security
Q (Frank Louthan · Raymond James): How far out have you locked resources (labor, materials) for projects and which resources are most at risk, especially with power commitments?
A: They said projects appear in the expansion tracker only after permitting hurdles are cleared and power is largely secured or near contract, and they maintain deep GC relationships in the Americas. They also prebook large parts of MCE, use an MK3 design so components are fungible across sites, and rely on a diversified portfolio to move kits between accelerating or decelerating projects.
"When we announced the project, so when you see it in our expansion tracker, you should be aware that at that point, we have cleared permitting hurdles and that we are largely secured in terms of power." — Adaire Fox-Martin (CEO)