Real Estate
Home›Real Estate›REITs›Equinix raises 2026 outlook after strong AI-driven Q2…
Equinix raises 2026 outlook after strong AI-driven Q2 results
Second-quarter revenue rose to $2.63 billion, and net income increased to $477 million as AI workloads drove most of its largest deals.
Equinix, a data center REIT, lifted its 2026 forecast and expectations after another record-heavy quarter supported by artificial intelligence demand and continued data center construction, according to Commercial Observer.
The Redwood City, California-based company reported $2.63 billion in second-quarter revenue, up from $2.44 billion in the first quarter and $2.26 billion a year earlier. Operating growth and one-time fees from its xScale hyperscale business helped results, while net income reached $477 million.
Equinix said funds from operations rose to $854 million from $758 million in the prior quarter. It also generated $424 million in annualized gross bookings, its highest second-quarter total on record, and produced about $110 million in presales.
On utilization, Equinix reported stabilized data centers at approximately 82 percent, with the stabilized portfolio generating $1.89 billion in revenue and a 27 percent cash return on gross property investment. Management also pointed to AI as a key driver, saying the vast majority of its largest deals were driven by AI workloads, and noted spending trends including higher capital expenditures and plans to pull more than 7,000 retail cabinets forward into the fourth quarter of this year.