Key facts
- Equinix shares fell 3% on Wednesday.
- The company's third-quarter revenue forecast of $2.53 billion to $2.58 billion was below analyst estimates.
- Equinix raised its 2026 revenue forecast to $10.21 to $10.29 billion.
- Full-year adjusted funds from operations forecast was raised to $42.69 to $43.29 per share.
- Annual revenue growth is now expected to be 10% to 13% through 2029, up from 7% to 10%.
Equinix shares declined 3% on Wednesday as a weaker-than-expected third-quarter revenue forecast overshadowed an improved outlook for the full year and long term. The data center operator anticipates third-quarter revenue between $2.53 billion and $2.58 billion, falling short of the $2.58 billion estimated by analysts.
Despite the short-term forecast, Equinix raised its 2026 revenue projection to a range of $10.21 billion to $10.29 billion, up from $10.14 billion to $10.24 billion. The company also increased its full-year adjusted funds from operations forecast to $42.69 to $43.29 per share, from $42.31 to $43.11 per share.
Looking further ahead, Equinix now expects annual revenue growth of 10% to 13% through 2029, an increase from the previous 7% to 10% range. Annual adjusted funds from operations per share growth is projected at 9% to 12%, up from 5% to 9% previously.
In the second quarter, Equinix reported revenue of $2.63 billion, surpassing the analyst estimate of $2.58 billion. The company highlighted broad-based and growing customer demand, positioning itself to meet global enterprise needs for networking, cloud, and AI infrastructure. Equinix provides secure data center space and connectivity solutions for IT equipment.