Why Is Equinix (EQIX) Down 9.9% Since Last Earnings Report?

A month has gone by since the last earnings report for Equinix (EQIX). Shares have lost about 9.9% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Equinix due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Equinix, Inc. before we dive into how investors and analysts have reacted as of late.

Equinix Q3 AFFO Beats Estimates, Recurring Revenues Rise Y/Y

Equinix’s third-quarter 2025 adjusted funds from operations (AFFO) per share of $9.83 beat the Zacks Consensus Estimate of $9.26. Moreover, the figure improved 8.6% from the prior-year quarter.

Results reflected higher recurring revenues year over year, led by strong demand for digital infrastructure and services. The company added 7,100 total interconnections, driven by cloud and enterprise connectivity in the quarter, thereby reaching more than 499,000 total interconnections. The company also raised its AFFO per share outlook for 2025.

Total quarterly revenues of $2.32 billion missed the Zacks Consensus Estimate by just 0.32%. However, the top line increased 5.2% year over year.

Q3 in Detail

Recurring revenues were $2.22 billion, up 7.6% from the year-ago quarter. Our projection for the metric was $2.16 billion. Non-recurring revenues decreased 28.9% to $101 million.

Revenues from the Americas and the EMEA rose 8% and 5.5% year over year to $1.04 billion and $784 million, respectively. However, the Asia Pacific decreased marginally to $497 million.

Adjusted EBITDA came in at $1.15 billion, up 9.5% year over year. We projected the metric at $1.14 billion. The adjusted EBITDA margin was reported at 50%.

AFFO rose 11.4% from the year-ago period to $965 million.

Equinix spent $64 million on recurring capital expenditure in the third quarter, down 7.2% on a year-over-year basis. Non-recurring capital expenditure was $1.07 billion, up 65.3% year over year.

Balance Sheet Position

Equinix had $6.9 billion of available liquidity as of Sept. 30, 2025. This comprised cash, cash equivalents, short-term investments and its undrawn revolver. It excludes restricted cash.

As of Sept. 30, 2025, total gross debt was around $17.3 billion. Its net leverage ratio was 3.6, and the weighted average maturity was 6.9 years as of Sept. 30, 2025.

Q4 & 2025 Guidance Revision

For the fourth quarter of 2025, Equinix projects revenues between $2.411 billion and $2.531 billion, an increase of 7% at the midpoint over the previous quarter. The adjusted EBITDA is expected to be in the range of $1.187-$1.267 billion.

The company has raised its 2025 AFFO per share guidance, which is now expected to be between $37.95 and $38.77 compared to the previous range of $37.67 and $38.48. This suggests an 8-11% increase from the previous year.

For 2025, Equinix has revised its guidance for total revenues in the band of $9.208-$9.328 billion compared to the prior range of $9.233-$9.333 billion. This indicates growth of 5-7% from 2024. Management predicts adjusted EBITDA in the range of $4.531-$4.611 billion compared to the previous range of $4.517-$4.597 billion. The adjusted EBITDA margin is expected to be 49%, suggesting an improvement of around 250 basis points over the previous year.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, Equinix has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Equinix has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Equinix belongs to the Zacks REIT and Equity Trust - Retail industry. Another stock from the same industry, Regency Centers (REG), has gained 2.7% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.

Regency Centers reported revenues of $387.57 million in the last reported quarter, representing a year-over-year change of +7.6%. EPS of $0.57 for the same period compares with $1.07 a year ago.

Regency Centers is expected to post earnings of $1.16 per share for the current quarter, representing a year-over-year change of +6.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +1%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Regency Centers. Also, the stock has a VGM Score of D.

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This article originally published on Zacks Investment Research (zacks.com).

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