Equinix, Inc. Q1 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Highlights

  • Recurring revenue reached $2.3B, up 10% year-over-year on a normalized constant-currency basis. This is the second consecutive quarter of double‑digit MRR growth.
  • Total revenue was $2.4B, up 8% year-over-year.
  • Adjusted EBITDA was $1.2B, up 13% year-over-year, with margins of 51% (up 300 bps YoY and 190 bps QoQ).
  • AFFO surpassed $1B for the first time, up 11% year-over-year; AFFO per share was $10.79, up 10% year-over-year.
  • Sales activity hit the highest level in company history, up 35% year-over-year, with annualized gross bookings of $378M (+9% YoY) plus $140M in pre-selling activity.
  • Churn was 1.7%, below the company’s typical 2–2.5% range due to delayed churn and improved renewal execution.
  • Interconnection revenue grew 9% year-over-year; Fabric revenue grew 26%, with Fabric bookings up 70% year-over-year.
  • MRR per cabinet rose to $2,524 (+7% YoY) driven by stronger pricing, higher densities, and interconnection attach.

Market & Strategic Context

  • The AI landscape has shifted from pilots to enterprise-wide deployment at scale.
  • Agentic AI and inference workloads require low-latency, distributed, hybrid architectures — a fit for Equinix’s global metro-based footprint.

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Operator: Good afternoon, and welcome to the Equinix First Quarter Earnings Conference Call. [Operator Instructions] Also, today's conference is being recorded. If anyone has any objections, please disconnect at this time. I would now like to turn the call over to Mr. Ryan Burke, Vice President of Investor Relations. You may begin, sir. Unknown Executive: Good afternoon, and welcome to our first quarter conference call. Before we get started, I want to remind you that some of the statements that we make today are forward-looking in nature and involve certain risks and uncertainties. Actual results may vary significantly from those statements. and may be affected by the risks we identified in today's press release and in our filings with the SEC, including our most recent Forms 10-K and 10-Q. Equinix assumes no obligation and does not intend to update or comment on forward-looking statements made on this call. In addition, in light of Regulation Fair Disclosure, it is our policy to not comment on our financial guidance during the quarter unless it is done through an explicit public disclosure. On today's conference call, we will provide non-GAAP measures. We provide a reconciliation of those measures to the most directly comparable GAAP measures in today's press release on the Equinix Investor Relations page at www.equinix.com. We have made available on the IR page of our website a presentation to accompany this discussion, along with certain supplemental financial information

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