Equinix (EQIX) AI Stock Analysis

• Market Cap: $85.68B
• Dividend Yield: 1.99%
• Average Volume (3M): 540.16K
• Price to Earnings (P/E): 91.0
• Beta (1Y): 0.90
• Revenue Growth: 6.36%
• EPS Growth: -3.54%
• Country: US
• Employees: 13,606
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Specialty
• EPS (TTM): 3.50
• Shares Outstanding: 97,818,990
• 10 Day Avg. Volume: 489,900
• 30 Day Avg. Volume: 540,163
• PEG Ratio: 7.22
• Price to Book (P/B): 6.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 240.89
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 2.92
• Enterprise Value/Gross Profit: 23.09
• Enterprise Value/Ebitda: 7.59
• 1Y Price Target: $999.50
• Price Target Upside: 16.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 78 Outperform
• Price Target: $1,000.00 ▲( 16.40% Upside)

Equinix demonstrates strong financial performance and positive earnings call insights, contributing to a robust overall stock score. However, technical indicators show mixed momentum, and the high P/E ratio suggests potential overvaluation. The raised guidance and strategic wins in AI offer a positive outlook, but moderate leverage and regional challenges present some risk.

Positive Factors

AI Demand

Equinix is seeing strong and consistent AI demand, with 50% of its top 25 deals being AI-related for the second quarter in a row.

Financial Performance

EQIX has delivered consistent and predictable AFFO/share growth, with an average growth of 8.7% over the past five years.

Guidance and Forecast

EQIX beat Q1 AFFO estimates and raised guidance on strong AI bookings and FX tailwinds.

Negative Factors

Churn Rates

Churn of 2.4% is higher than the prior 4 quarter average of ~2.2%, however, it is expected to remain within the quarterly target of 2% to 2.5% for the full year.

Leasing Activity

Leasing was muted in the quarter, but EQIX noted strong hyperscaler demand and the company is actively preparing for larger opportunities.

Equinix Business Overview & Revenue Model

Company Description

Equinix (Nasdaq: EQIX) is the world's digital infrastructure company, enabling digital leaders to harness a trusted platform to bring together and interconnect the foundational infrastructure that powers their success. Equinix enables today's businesses to access all the right places, partners and possibilities they need to accelerate advantage. With Equinix, they can scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value.

How the Company Makes Money

Equinix generates revenue primarily through recurring monthly fees for colocation space, power, and interconnection services. Customers pay for the physical space in data centers to house their IT equipment, as well as for the power required to run it. Interconnection services, which enable businesses to connect directly with partners and customers within the same data center or across different locations, also contribute significantly to revenue. Additionally, Equinix benefits from strategic partnerships with major cloud service providers, facilitating hybrid and multi-cloud deployments for enterprises. The company's global reach and expanded data center footprint enable it to cater to a diverse client base, including large enterprises and service providers, further bolstering its revenue streams.

Equinix Financial Statement Overview

Summary

Equinix shows strong revenue and profit growth, efficient operations, and improved cash flows. While the company maintains a healthy equity position, moderate leverage poses some risk. Overall, financial stability and growth trajectory are positive, with potential for sustained profitability.

Income Statement

Equinix's income statement shows strong revenue growth with a TTM revenue increase to $8.85 billion, up from $8.75 billion in the previous year, indicating a growth trajectory. The gross profit margin is healthy at 49.6%, and the net profit margin improved to 10.5%, demonstrating profitability. EBIT and EBITDA margins are strong at 15.9% and 32.9% respectively, pointing to efficient operations.

Balance Sheet

The balance sheet reflects a stable equity position with stockholders' equity at $13.89 billion, resulting in an equity ratio of 38.5%. The debt-to-equity ratio stands at 1.28, indicating moderate leverage. Return on equity is at a solid 6.7%, showcasing decent returns for equity holders.

Cash Flow

Cash flow statements indicate robust operating cash flow with a TTM figure of $3.46 billion. Free cash flow has grown significantly to $1.10 billion from $183 million, highlighting improved cash efficiency. The operating cash flow to net income ratio is strong at 3.73, indicating effective cash generation relative to profits.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.85B	8.75B	8.19B	7.26B	6.64B	6.00B
	Gross Profit
4.39B	4.28B	3.96B	3.51B	3.16B	2.92B
	EBIT
1.41B	1.33B	1.44B	1.20B	1.11B	1.05B
	EBITDA
3.44B	3.44B	3.37B	2.92B	2.60B	2.35B
	Net Income Common Stockholders
927.00M	815.00M	969.18M	704.35M	500.19M	369.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.67B	3.61B	2.10B	1.91B	1.54B	1.61B
	Total Assets
36.08B	35.09B	32.65B	30.31B	27.92B	27.04B
	Total Debt
19.65B	18.96B	17.46B	16.47B	14.99B	13.92B
	Net Debt
16.70B	15.88B	15.36B	14.56B	13.46B	12.32B
	Total Liabilities
22.17B	21.53B	20.14B	18.80B	17.04B	16.40B
	Stockholders Equity
13.89B	13.53B	12.49B	11.51B	10.88B	10.63B
Cash Flow		Free Cash Flow
351.00M	183.00M	435.58M	685.18M	-204.31M	27.32M
	Operating Cash Flow
3.46B	3.25B	3.22B	2.96B	2.55B	2.31B
	Investing Cash Flow
-4.17B	-3.94B	-3.22B	-3.36B	-3.01B	-3.43B
	Financing Cash Flow
2.13B	1.72B	211.45M	856.77M	413.76M	815.53M

Equinix Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 859.14
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQIX, the sentiment is Positive. The current price of 859.14 is above the 20-day moving average (MA) of 858.65, above the 50-day MA of 826.82, and below the 200-day MA of 871.64, indicating a neutral trend. The MACD of 12.36 indicates Positive momentum. The RSI at 54.55 is Neutral, neither overbought nor oversold. The STOCH value of 65.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EQIX.

Equinix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EQIX	78 Outperform	$85.68B	91.00	7.08%	1.99%	6.36%	-3.54%
DLR	76 Outperform	$57.52B	158.77	2.14%	2.87%	2.96%	-68.06%
SBAC	74 Outperform	$25.31B	31.17	-14.67%	1.73%	-0.29%	47.83%
DBRG	71 Outperform	$2.18B	36.79	10.58%	0.35%	-56.43%	-82.25%
AMT	65 Neutral	$100.84B	55.28	80.05%	3.04%	-6.05%	-11.75%
Sector *	60 Neutral	$2.82B	10.38	0.33%	8508.19%	5.98%	-17.49%
CCI	57 Neutral	$44.82B	33.81	-198.54%	6.08%	-12.57%	-375.80%

Equinix Corporate Events

Equinix Issues €1.5 Billion in Green Senior Notes

On May 19, 2025, Equinix Europe 2 Financing Corporation LLC, a subsidiary of Equinix, Inc., issued €750 million in 3.250% Senior Notes due 2029 and €750 million in 4.000% Senior Notes due 2034. The proceeds from these notes are intended to finance or refinance eligible green projects, with any remaining funds held in cash or used to repay existing debts. This issuance is part of Equinix’s strategy to support sustainable projects and manage its financial obligations effectively, potentially impacting its market position and stakeholder relations positively.

The most recent analyst rating on (EQIX) stock is a Buy with a $985.00 price target. To see the full list of analyst forecasts on Equinix stock, see the EQIX Stock Forecast page.

Equinix Board Member Jeetu Patel Steps Down

On March 25, 2025, Jeetu Patel, a board member of Equinix, Inc. since June 2022, announced he would not seek reelection at the company’s 2025 annual stockholders meeting in May. His decision was due to increased responsibilities at Cisco, not disagreements with Equinix, indicating no negative impact on the company’s operations or policies.