Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Monthly recurring revenue growth (normalized/constant currency) | 11% | Not stated |
| Total revenue growth (normalized/constant currency) | 12% | Not stated |
| Annualized gross bookings | $533 million | Up 35% |
| Adjusted EBITDA margin | 51.4% | Up 180 basis points |
| AFFO per share growth (normalized) | 12% | Not stated |
Guidance and outlook
- For the fourth quarter, we expect year-over-year monthly recurring revenue growth of 10% to 11% and total revenue growth of 12% to 13%.
- For the full year, we are raising total revenue guidance by $100 million to approximately 12% growth year-over-year.
- For the full year, we are raising adjusted EBITDA by $70 million to a margin of approximately 51%.
- For the full year, we are raising AFFO by $90 million and AFFO per share to a range of 11% to 12% growth year-over-year.
- Excluding real estate acquisitions and scale, we continue to expect total capital expenditures of $5 billion to $6 billion.
How management sounded
Positive (+7 on our -10 to +10 scale). Management raised full-year guidance and highlighted record bookings, strong pricing power, and successful capacity delivery despite industry headwinds. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Gross Bookings
Asked: David Guarino (Green Street) asked if the $533 million in gross bookings was an outlier or a sustainable pace.
Answer: Management noted this was the first time passing $0.5 billion and highlighted strong pipeline momentum, with 60% of the Q4 target already closed.
Pricing and Interconnection
Asked: Aryeh Klein (BMO Capital Markets) asked about pricing opportunities and the potential for consumption-based interconnection pricing.
Answer: Management emphasized that pricing power is driven by value delivery and a constrained capacity environment, noting that interconnection evolution is ongoing with new products like Fabric One and Inference Exchange.
Churn
Asked: Michael Rollins (Citi) asked about the drivers of low churn and the assumptions in long-term guidance.
Answer: Management attributed low churn to team execution and a constrained capacity environment, noting they may selectively churn out customers to optimize pricing and density.
Development Delays
Asked: Michael Funk (Bank of America) asked about development delays and margin expansion levers.
Answer: Management explained they manage a diversified portfolio of 48 projects across 32 markets to mitigate risks, while margin expansion is driven by pricing, SG&A discipline, and operational efficiencies.
New Products
Asked: Nick Del Deo (MoffettNathanson) asked about the strategy behind Equinix Fabric One and Inference Exchange.
Answer: Management stated these products are designed to simplify complex networking and AI infrastructure deployment, helping customers avoid vendor lock-in and accelerate their AI strategies.
What to watch before the next call
- The company's ability to navigate power availability, legislation, and community sentiment challenges for future data center builds.
- The performance and adoption of new products like Equinix Fabric One and Inference Exchange as they move to general availability.
- The impact of potential interest rate changes on capital expenditures and long-term growth targets.
