Valued at approximately $75 billion by market cap, Redwood City, California-based Equinix, Inc. (EQIX) provides global data center and digital infrastructure solutions, enabling businesses to securely connect and optimize their digital operations. It facilitates high-performance interconnection, colocation, and cloud services across various industries.
The tech giant is set to unveil its first-quarter results after the markets close on Wednesday, Apr. 30. Ahead of the event, analysts expect EQIX to report an adjusted funds from operations (AFFO) of $8 per share, down 9.7% from $8.86 per share reported in the year-ago quarter. On the positive note, the company has surpassed the Street’s AFFO expectations in each of the past four quarters by notable margins.
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For the full fiscal 2025, EQIX is expected to deliver an AFFO of $33 per share, down 5.8% from $35.02 per share reported in fiscal 2024. While in fiscal 2026, its AFFO is expected to rebound 8.2% year-over-year to $35.69 per share.
EQIX stock soared 13.5% over the past 52 weeks, notably outpacing the Technology Select Sector SPDR Fund’s (XLK) 5.5% gains and the S&P 500 Index’s ($SPX) 9.4% returns during the same time frame.
Equinix’s stock prices dropped 1.3% in the trading session after the release of its Q4 results on Feb. 12. The company reported a 7.2% year-over-year growth in revenues to $2.3 billion, which missed the Street’s expectations by a small margin. Meanwhile, the company showcased impressive cost management by reducing its sales & marketing expenses and keeping its general and admin expenses to modest levels. This led to a notable expansion in EBITDA margin and an 11% year-over-year growth in adjusted EBITDA to more than $1 billion. Moreover, its AFFO of $7.92 per share surpassed the consensus estimates by 12.5%.
The consensus view on EQIX remains strongly optimistic, with a “Strong Buy” rating overall. Of the 27 analysts covering the stock, opinions include 24 “Strong Buys,” one “Moderate Buy,” and two “Holds.” Its mean price target of $1,021.19 suggests a 21.8% upside potential from current price levels.