Equinix Delivers Strong Q2 Results, Raises Guidance Amid Accelerating Demand for Neutral Infrastructure
Equinix, the global leader in interconnection and data center services, has reported a strong second quarter (Q2) 2026 earnings performance, driven by accelerating demand for neutral infrastructure. The company's Q2 results reflect its continued ability to capitalize on the growing trend of enterprises modernizing their on-prem infrastructure to support broad-based distributed workloads.
In a conference call with investors and analysts, Adaire Fox-Martin, CEO and President of Equinix, highlighted the company's success in delivering durable, profitable growth amidst an accelerating AI-driven infrastructure cycle. The company's global scale, differentiated portfolio, and unmatched ecosystems have enabled it to convert demand into revenue growth, with monthly recurring revenue (MRR) increasing 11% year-over-year on a normalized and constant currency basis.
Equinix's Q2 results also demonstrate the strength of its execution, with annualized gross bookings growing 23%, representing the company's second-highest volume on record. Total sales activity, inclusive of annualized gross bookings and pre-sales, grew over 30%, while AFFO per share grew 18% on a normalized and constant currency basis.
The company's performance has been driven by a significant increase in demand for its services from the world's largest enterprises, which are modernizing their on-prem infrastructure to support today's broad-based distributed workloads. The remainder of the demand comes from net new AI native workloads and service providers powering them. In both cases, the majority of customers are already Equinix customers, further emphasizing the company's unique position in meeting the needs of this target market.
Olivier Leonetti, CFO, provided a detailed view of the company's outlook, highlighting its expectation to deliver top and bottom-line growth well ahead of previous forecasts. Through 2029, Equinix expects total revenue growth in the 10-13% range annually, with AFFO per share growing 9-12% during the same period. The company plans to invest $5 billion-$7 billion in capital expenditures (CapEx) annually through 2029, expecting these investments to deliver attractive returns while enabling the outcomes its customers need.
Equinix's revised outlook reflects a strong quarter and demonstrates what a focused team executing the right strategy can achieve in a market that is materially stronger than it was a year ago. As the market has evolved, the nature of demand has given the company greater conviction in its plan to deliver solutions for enterprises modernizing their on-prem infrastructure.
The accelerating trend of distributed workloads and the need for infrastructure built for this new era are driving growth for Equinix and other companies providing similar services. The company's success in meeting these demands highlights its ability to capitalize on emerging trends and deliver strong financial performance in doing so.
