Equinix (EQIX) AI Stock Analysis

• Market Cap: $76.80B
• Dividend Yield: 2.39%
• Average Volume (3M): 697.13K
• Price to Earnings (P/E): 81.6
• Beta (1Y): 0.79
• Revenue Growth: 6.36%
• EPS Growth: -3.54%
• Country: US
• Employees: 13,606
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Specialty
• EPS (TTM): 3.50
• Shares Outstanding: 97,818,990
• 10 Day Avg. Volume: 1,166,277
• 30 Day Avg. Volume: 697,128
• PEG Ratio: 7.37
• Price to Book (P/B): 6.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 246.05
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 2.97
• Enterprise Value/Gross Profit: 23.50
• Enterprise Value/Ebitda: 7.73
• 1Y Price Target: $983.15
• Price Target Upside: 25.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 23

• Rating: 71 Outperform
• Price Target: $824.00 ▲(4.95%Upside)

Equinix's overall score is bolstered by its strong financial performance and positive earnings call, which showcase growth potential and strategic wins. However, technical analysis reflects bearish momentum, and the valuation suggests potential overvaluation, tempering the overall score.

Positive Factors

AI growth

Strong projected AI inference growth and commentary on customer demand justifies the investment and EQIX is viewed as a primary beneficiary of secular AI growth.

Industry exposure

Analyst reiterates Buy rating due to EQIX’s industry leading enterprise colocation exposure, lower relative leverage, and exposure to AI inferencing demand.

Strategic positioning

Equinix is leveraging its U.S. franchise and global footprint to secure deal wins globally, providing a strategic advantage.

Negative Factors

AFFO/sh and dividend guidance

Lower than previous AFFO/sh and dividend growth guidance coupled with levering up for future growth is a negative short term shock to sentiment.

Financial guidance

The stock experienced a decline due to disappointing financial guidance provided by the company.

Investment costs

Higher investments are a near-term headwind to AFFOps growth, and shares are expected to be range-bound until growth accelerates.

Equinix Business Overview & Revenue Model

Company Description

Equinix, Inc. (EQIX) is a global leader in data center and colocation services, offering a robust platform for digital businesses to connect seamlessly across the globe. With a vast network of International Business Exchange (IBX) data centers, Equinix provides secure and reliable environments for enterprises, cloud and IT providers, and network services. The company operates across various sectors, including telecommunications, financial services, and content and digital media, ensuring businesses can optimize their digital infrastructure for performance, security, and scalability.

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 is financially robust with strong revenue and profit growth, efficient operations, and improved cash flows. The company maintains a healthy equity position, though 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
EBITDA	3.44B	3.44B	3.37B	2.92B	2.60B	2.35B
Net Income	927.00M	815.00M	969.18M	704.35M	500.19M	369.78M
Balance Sheet
Total Assets	36.08B	35.09B	32.65B	30.31B	27.92B	27.04B
Cash, Cash Equivalents and Short-Term Investments	3.67B	3.61B	2.10B	1.91B	1.54B	1.61B
Total Debt	19.65B	18.96B	17.46B	16.47B	14.99B	13.92B
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: Negative
• Last Price: 785.11
• 50DMA: Negative
• 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 Negative. The current price of 785.11 is below the 20-day moving average (MA) of 880.21, below the 50-day MA of 861.47, and below the 200-day MA of 880.98, indicating a bearish trend. The MACD of -14.84 indicates Positive momentum. The RSI at 33.27 is Neutral, neither overbought nor oversold. The STOCH value of 20.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EQIX.

Equinix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLR	73 Outperform	$57.71B	159.30	2.14%	2.85%	2.96%	-68.06%
EQIX	71 Outperform	$76.80B	81.57	7.08%	2.39%	6.36%	-3.54%
SBAC	69 Neutral	$24.80B	30.55	-14.67%	1.92%	-0.29%	47.83%
DBRG	67 Neutral	$1.93B	32.60	10.58%	0.39%	-56.43%	-82.25%
AMT	66 Neutral	$101.95B	55.89	80.05%	3.12%	-6.05%	-11.75%
CCI	55 Neutral	$43.83B	33.81	-198.54%	4.22%	-12.57%	-375.80%
Sector *	53 Neutral	$1.19B	3.25	-0.13%	7.48%	-1.64%	-127.49%

Equinix Corporate Events

Equinix Unveils Strong Growth Projections at Analyst Day

On June 25, 2025, Equinix hosted its Analyst Day event, revealing its financial outlook for the coming years. The company anticipates annual revenue growth of 7% to 10% through 2029, with adjusted EBITDA margins expected to expand to 52% or greater by the same year. Additionally, Equinix projects AFFO per share growth of 5% to 9% annually from 2025 to 2029, with dividend per share growth of 8% or more each year. These projections indicate a strong growth trajectory for Equinix, potentially enhancing its market position and offering positive implications for stakeholders.

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 Stockholders Approve Key Proposals at Annual Meeting

On May 21, 2025, Equinix held its Annual Meeting where stockholders voted on several key proposals. All eight directors were reelected, the compensation of executive officers was approved, and an amendment to increase shares in the equity incentive plan was passed. Additionally, PricewaterhouseCoopers LLP was ratified as the independent accounting firm for 2025, while a stockholder proposal on written consent was not approved.

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 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.