Equinix, Inc. Q2 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Key Performance Highlights (Q2 2026 vs. Q2 2025)

  • Monthly Recurring Revenue (MRR) growth accelerated to 11% year-over-year on a normalized and constant currency basis; third consecutive quarter of double-digit MRR growth.
  • Annualized gross bookings grew 23% year-over-year (second-highest volume on record); total sales activity (bookings + presales) grew over 30%.
  • Record 9,700 net interconnections added (most ever); interconnection revenue grew ~9% year-over-year.
  • AFFO per share grew 18% year-over-year on normalized constant currency basis.
  • Adjusted EBITDA margin reached 53%, up 300 basis points year-over-year (150 bps excluding scale leasing fees).
  • Churn at 1.8%; expected to remain near lower end of 2-2.5% range for H2 2026.
  • 4,200 net cabinet billings added; backlog at record levels.

Financial Results & Capital Deployment

  • Total revenue increased 16% year-over-year, including ~$120M non-recurring fees from 134 MW Xscale leases (e.g., Hampton).
  • Stabilized assets (194) at 82% utilization with 27% cash-on-cash yields on growth PP&E.
  • Q2 CapEx ~$1.6B (~90% for capacity expansion); new projects opened in Madrid, Milan, and Silicon Valley.
  • Available liquidity ~$7.7B; net leverage at 3.6x annualized adjusted EBITDA.

Guidance Updates (Raised for Second Consecutive Quarter)

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Operator: Good afternoon, and welcome to the Equinix Second Quarter Earnings Conference Call. All participant lines will be able to listen only until the open for questions. Today's conference is being recorded. If you object, please disconnect at this time. I will now turn the call over to Ryan C. Burke, Vice President of Investor Relations. You may begin. Ryan C. Burke: Good afternoon, and welcome to our second 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 identify in today's press release and in our filings with the SEC. 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 our website a presentation that we will refer to. Along with certain supplemental financial information and other data. With us today are Adaire Rita Fox-Mar

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