We came across a cheap thesis on Equinix, Inc. on Investomine’s Substack. In this article, we will summarize the bulls’ view on EQIX. The share of Equinix, Inc. was $956.19 as of February 13. EQIX’s trailing and forward P/E were 69.49 and 58.48 respectively according to Yahoo Finance.
Equinix, Inc. shortens the path to unlimited connectivity anywhere in the world. Its digital infrastructure, data center history and connected ecosystems enable new technologies that improve our work, life and planet. EQIX closed 2025 with strong performance momentum, record bookings, and rapid demand from AI workloads, solidifying its position as the world’s neutral infrastructure backbone for hybrid cloud and AI applications. Revenue reached nearly $9.2 billion, up mid-single digits year over year, while operating income and adjusted EBITDA grew significantly, with margins approaching 49%.
AFFO expanded to approximately $3.8 billion, representing high single-digit growth per share and improved performance throughout its global history in the Americas, EMEA, and Asia-Pacific. The fourth quarter results highlighted total bookings made annually, more than half of the largest deals integrated with AI, and more than 500,000 connections worldwide, demonstrating the network’s strong results.
Despite these gains, the business remains leveraged, and free cash flow remains negative due to continued data center construction, xScale expansion, and real estate acquisitions, coupled with increased capital to support growth. Management continues to prioritize long-term strategic positioning and strength over short-term cash flow, while maintaining balanced dividends, up around 10% year-over-year, supported by strong AFFO growth.
Looking ahead to 2026, management is targeting double-digit revenue growth, EBITDA margin expansion to 51%, and low double-digit AFFO growth, suggesting that earlier investments have begun to ramp up. Equinix’s global reach, AI-driven demand, and record bookings place it at the center of structural shifts in digital infrastructure, creating an encouraging long-term growth story.
However, investors should weigh the upside of growing AI and hybrid cloud exposure against liquidity, interest rate sensitivity, and continued reliance on capital markets to fund expansion. For those comfortable with these changes, Equinix offers unique access to the core of distributed AI, combining growth, strategic positioning, and profit potential into a single investment concept.
