Equinix Inc: AI adoption driving upside to multiyear guidance

研报英文原文证据摘录

Equinix Inc: AI adoption driving upside to multiyear guidance

nnectivity density. Given recent moves, we believe Q1 4.20 4.20 0 4.20

Equinix is setting the stage to dominate the enterprise infrastructure layer as AI adoption Q2 4.99 4.85 -3 4.72

matures and agentic AI proliferates. Q3E 4.19 4.52 8 4.19

Q4E 4.15 4.20 1 4.19

New UBS estimates 12/26E 17.48 17.68 1 17.97

We are updating our estimates to reflect revised guidance for 2026-29. We now forecast 12/27E 18.82 18.57 -1 20.22

revenues increasing at an 11.5% CAGR from '27-29E (prior 9.3%), while margins 12/28E 20.88 20.39 -2 22.26

expand ~100bps annually to 54.2% in '29E (prior 53.9%). Our capex estimates move up John C. Hodulik, CFA

meaningfully, by ~$2.5B to $6.5B annually across '27-29E (prior $3.9B; excludes xScale, Analyst

real estate). We expect this to extend growth beyond 2029 given the acceleration in john.hodulik@ubs.com

development and timeline for assets to reach stabilization. Net, our AFFO/sh estimates +1-212-713 4226

move up by ~1% in '27E, ~3% in '28E and ~5% in '29E. Ryan Gravett, CFA

Analyst

Updates to guidance for 2027-29 ryan.gravett@ubs.com

Revenue growth now expected at 10-13% annually vs. 7-10% provided at last +1-212-713 3344

year's analyst day. Management expects growth in the initial years at the lower Batya Levi

end of the range, accelerating through the period as capacity is deployed (also Analyst

subject to timing of xScale fees). Stronger revenues are expected to support 53%+ batya.levi@ubs.com

EBITDA margins by 2029 vs. 52%+ previously. +1-212-713 8824

Annual capex of $5-7B vs. $3-4B prior (includes recurring and non-recurring

spend) with ~80% of the budget in the company's top 25 markets. Equinix has a

3GW landbank and plans to add 1GW of retail capacity by '29.