Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Equinix delivered strong Q1 FY2026 results with revenue of $2.44B (+9.8% YoY) and operating income surging 26.0% to $577M, though cash balances fell sharply and long-term debt rose 24.5% amid heavy capital investment.
Revenue
$2.44B
+9.84% YoY
EPS (Diluted)
$4.20
+20.00% YoY
Operating Income
$577M
+25.98% YoY
Source: SEC XBRL
Equinix (EQIX) reported Q1 FY2026 revenue of $2.44B, up 9.8% year over year. Operating margin was 23.6%, up 3.0 points from 20.6% a year earlier. Operating cash flow was $717M, down 11.4% year over year. EQIX's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 4.82 | 4.82 | Beat +0.1% |
| Mar 2026 | 4.41 | 4.44 | Miss -0.8% |
| Dec 2025 | 3.33 | 3.93 | Miss -15.2% |
| Sep 2025 | 3.85 | 3.72 | Beat +3.4% |
Compiled by AI from this SEC filing
Total revenue reached $2.44B in Q1 FY2026, up 9.8% YoY from $2.23B, reflecting sustained demand for data center colocation and interconnection services globally as enterprises and hyperscalers expand their digital infrastructure footprints.
Source: 10-Q Income Statement
Operating income grew 26.0% YoY to $577M, pushing operating margin from 20.6% to 23.6%, suggesting improved operating leverage and cost discipline relative to revenue growth despite a 9.4% rise in cost of revenue.
Source: 10-Q Income Statement & Key Ratios
Total assets grew 13.4% YoY to $40.9B, while investing cash outflows deepened to -$1.46B from -$964M, indicating continued heavy investment in new data center capacity and potential acquisitions to support future growth.
Source: 10-Q Balance Sheet & Cash Flow Statement
Long-term debt rose 24.5% YoY to $19.8B, with financing cash flows turning strongly positive at $349M (vs. $15M prior year), suggesting Equinix raised substantial new debt or equity capital to fund its capital-intensive expansion program.
Source: 10-Q Balance Sheet & Cash Flow Statement
Dividends paid totaled $519M in Q1 FY2026, up 10.9% YoY from $468M, consistent with Equinix's REIT structure requiring substantial distribution of taxable income to shareholders even as the company invests heavily in growth.
Source: 10-Q Cash Flow Statement
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Long-term debt surged 24.5% YoY to $19.8B, pushing the debt-to-equity ratio to 1.86x. In a higher-for-longer interest rate environment, servicing this growing debt burden could compress future earnings and limit financial flexibility. Continued reliance on debt financing to fund capital expenditures increases refinancing risk.
Source: 10-Q Balance Sheet
Cash and equivalents fell 53.8% YoY to $1.36B from $2.95B, while current liabilities surged 36.4% to $4.54B. The current ratio of 1.18x, while above 1.0, has narrowed materially, raising questions about near-term liquidity if capital markets become less accessible or operating cash flows deteriorate.
Source: 10-Q Balance Sheet & Key Ratios
Operating cash flow declined 11.4% YoY to $717M while investing outflows widened to -$1.46B, implying negative free cash flow that must be funded externally. This dynamic, combined with $519M in dividends paid, underscores the company's dependence on capital markets to sustain both growth and shareholder distributions.
Source: 10-Q Cash Flow Statement
Equinix's business model requires continuous large-scale investment in physical data center assets, making it highly sensitive to construction cost inflation, supply chain disruptions for critical equipment, and permitting or power availability constraints in key markets. Any delays or cost overruns in expansion projects could impair future revenue growth.
Source: 10-Q Balance Sheet & Cash Flow Statement
With operations across the Americas, EMEA, and Asia-Pacific, Equinix is exposed to foreign exchange fluctuations that can impact reported revenue and earnings. Geopolitical tensions or regulatory changes in key international markets could also affect data sovereignty requirements and cross-border interconnection demand.
Source: 10-Q Income Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 2.44 $B | 2.23 $B | +9.84% |
Cost of Revenue $B | 1.19 $B | 1.08 $B | +9.41% |
Operating Income $M | 577.00 $M | 458.00 $M | +25.98% |
Net Income $M | 415.00 $M | 343.00 $M | +20.99% |
EPS (Basic) $ | 4.22 $ | 3.52 $ | +19.89% |
EPS (Diluted) $ | 4.20 $ | 3.50 $ | +20.00% |
Answers draw on this SEC filing and the data on this page
Equinix delivered strong Q2 FY2026 financial results with revenue growing 16.4% year-over-year to $2.63B and net income rising 30.2% to $479M, propelled by global colocation demand and AI infrastructure expansion.
Equinix delivered strong FY2025 results with revenue growing 5.4% to $9.22B, while net income surged 65.6% to $1.35B and operating margin expanded nearly 5 percentage points to 20.1%, driven by disciplined cost management and continued global data center demand.
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