Equinix, Inc.

NASDAQ Global Select
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Somewhat Bullish +50

This Artificial Intelligence (AI) Stock Just Projected $10 Billion in Revenue for 2026. Here's Why It's Just Getting Started.

AI-generated analysis

🌐 Equinix operates 280 data centers globally connecting to all major cloud networks and serves over 10,500 companies, including 60% of the Fortune 500.

💰 The company is projected to generate over $10 billion in revenue for 2026, up from an estimated $9.2 billion for 2025.

📈 Bookings saw dramatic acceleration in late 2025, growing 14% quarter-over-quarter in Q3 and 20% in Q4.

🏢 As a REIT, Equinix earns roughly 70% of revenue by renting space globally across all continents except Antarctica in over 65 metros.

☁️ It partners with every major cloud provider like Google Cloud, AWS, and Azure to offer direct low-latency private connections without public internet exposure.

💵 Despite a high share price of $937, Equinix offers a solid 2% dividend yield on a quarterly payout of $5.16 per share.

📈 Dividends have increased every year for the past 11 years and grew from 1.81% in 2024 to 2.45% in 2025.

🤖 Adjusted funds from operations (AFFO) reached $3.7 billion in 2025, representing a 12% increase over the previous year.

💸 Building new data centers costs between $7 million and $12 million per megawatt of IT load, making Equinix's rental model economically attractive for smaller firms.

📉 Over 4,000 data centers are currently operating in the U.S., with another 3,000 under construction or planned to meet AI demands.

🤔 The article notes that Equinix was not included in a recent Motley Fool Stock Advisor list of top 10 stocks for immediate buying.

🚀 Tech giants like Amazon and Google are increasing AI capital expenditure significantly in 2026, driving demand for Equinix's infrastructure.

Bullish Signals
  • Equinix projects revenue to grow from $9.2 billion in 2025 to over $10 billion in 2026, driven by strong demand for AI infrastructure.
  • Bookings spiked dramatically in the second half of 2025, with third-quarter bookings up 14% and fourth-quarter bookings surging another 20% sequentially.
  • The company collects rent from 60% of the Fortune 500 through its 280 data centers located across 65 global metros on every continent except Antarctica.
  • Equinix's adjusted funds from operations (AFFO) grew 12% in 2025 to $3.7 billion, demonstrating strong operational performance.
  • Despite a high share price of $937, Equinix pays a solid 2% dividend yield on its quarterly payout of $5.16 per share.
  • Equinix has successfully raised its dividend each year for the past 11 years, with growth accelerating to 10% year-over-year since 2024.
  • The company's diversified partnerships with major cloud providers like Google, AWS, and Azure provide a stable tollbooth revenue model for digital traffic.
  • Equinix offers a compelling alternative to expensive capital expenditure by allowing companies to rent space instead of building their own data centers.
Full Analysis
Equinix (NASDAQ: EQIX) is a Real Estate Investment Trust (REIT) that owns 280 data centers across every continent except Antarctica, with operations spanning over 65 global metros. The company generates approximately 70% of its revenue from renting space to over 10,500 enterprise clients, including 60% of the Fortune 500. Revenue for 2024 was $9.2 billion, and the company projects revenues to exceed $10 billion in 2026, driven by increased capital expenditure from technology giants on AI infrastructure. The demand for Equinix's services is being amplified by the high cost of building proprietary data centers, estimated at $7 million to $12 million per megawatt of IT load. This makes renting space within Equinix's interconnected global network a more economically viable option for many companies compared to building their own facilities. Equinix leverages its extensive partnerships with major cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud through its Equinix Fabric Network, offering customers low-latency, private internet connections that do not traverse the public internet, thereby enhancing security and performance. Financially, Equinix demonstrated strong growth in 2025, with revenue rising 5% year-over-year and adjusted funds from operations (AFFO) increasing 12% to $3.7 billion. The company trades at a price of $937 and offers a quarterly dividend of $5.16 per share, resulting in a yield of 2% as of the reporting date. This yield represents an increase from 1.81% in 2024 to 2.45% in 2025, while the company has raised its dividend for 11 consecutive years, with a 10% year-over-year increase since 2024. Despite a share price growth of nearly 9% over the past 12 months, Equinix maintains its appeal as a tollbooth to the cloud for AI infrastructure needs. The article notes that while Amazon alone has projected $200 billion in capital expenditure for 2026, not every company possesses the liquidity to build large-scale facilities independently, further cementing Equinix's role as an indispensable provider for the digital world. However, the text also includes a promotional pitch from The Motley Fool Stock Advisor team recommending a list of other stocks, noting that Equinix was not included in their current top 10 pick list, while acknowledging the company is one of the few where the investment firm holds and recommends a position.