Equinix (EQIX -1.71%), the global digital infrastructure and interconnection company, released its financial results for Q2 2025 on July 30, 2025, reporting a solid quarter driven by earnings strength and rising operational margins. The company delivered GAAP EPS of $3.75, which outpaced analyst expectations of $3.48 (GAAP). GAAP revenue came in at $2.26 billion, just slightly below the $2.26 billion GAAP estimate by less than 0.1%. Despite a minimal revenue miss, adjusted EBITDA and AFFO (non-GAAP) results exceeded prior year figures, helping push management to raise its financial guidance for the remainder of fiscal 2025. Overall, the quarter highlighted continued robust demand for digital infrastructure, ongoing strategic expansion, and resilient profitability.
| Metric | Q2 2025 | Q2 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $3.75 | $3.48 | $3.16 | 19% |
| Revenue (GAAP) | $2.26 billion | $2.26 billion | $2.16 billion | 4.6% |
| Adjusted EBITDA | $1.13 billion | $1.04 billion | 9.0% | |
| Funds From Operations ("FFO") | $689 million | $597 million | 15.4% | |
| Adjusted Funds From Operations ("AFFO") | $972 million | $877 million | 10.8% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
What Equinix does and where it focuses
Equinix operates a global network of data centers and provides digital infrastructure services that enable companies to store, manage, and interconnect their IT systems securely. Its data centers house the infrastructure that digital businesses, cloud providers, and networks rely on to run their operations and connect with partners or customers around the world. The company runs 268 data centers across the Americas, Europe, Middle East, Africa (EMEA), and Asia-Pacific, supporting over 10,000 customers.
Recently, Equinix has focused on several critical priorities. These include expanding its data center footprint globally, enhancing interconnection and ecosystem services allowing businesses to connect rapidly and securely, deepening strategic partnerships with cloud and AI leaders, and driving sustainability initiatives such as renewable energy adoption. Technological innovation is also critical, as the company invests in products for AI workloads, new interconnection solutions, and operational improvements. The success of Equinix depends on sustaining high utilization of its centers, maintaining industry-leading interconnection scale, and keeping pace with customer and technological advances in cloud and AI.
Quarter in detail: Performance, growth drivers, and key events
Results for the second quarter showed robust financial momentum. GAAP earnings per share rose 19% from the prior year period, helped by strong adjusted EBITDA performance and operating leverage. GAAP revenue grew 4% year-over-year. Adjusted EBITDA reached $1.13 billion, with margin improvement driven by efficient operations.
Segment results showed revenue gains in all regions, led by demand from financial services and AI-focused customers, especially in major cities like Chicago and Dallas. Although the EMEA region experienced some customer churn, including impacts from customer bankruptcies, and Asia-Pacific saw strong performances in Malaysia and India, across its key products, colocation services generated $1.585 billion, and interconnection revenue crossed the $400 million mark for the first time (as-reported).
Product innovation and strategic partnerships were notable highlights. Interconnection solutions such as Equinix Fabric, which allow businesses to connect securely to multiple cloud providers, exceeded 492,000 total connections as of the end of Q2 2025. This momentum was driven by new deployments for AI workloads, including with partners like Groq (AI computing), Hyundai (private cloud), and others seeking high-performance and ultra-secure AI or hybrid cloud infrastructure. Equinix made progress in liquid cooling deployment, supporting higher-density and power-efficient servers critical for AI and machine learning.
Global expansion efforts continued at scale. The company reported 59 major expansion projects underway in 34 metro areas across 25 countries, adding nine new projects in the quarter. This included key additions in markets such as Bangkok, Chicago, and Silicon Valley. Southeast Asia grew in importance with acquisition activity in Manila. Large-scale data center projects targeted at hyperscale and AI workloads, known as xScale, made up a significant share of new investment and were largely pre-leased, reducing leasing risk.
Sustainability remained a theme, though with less new data this quarter. Equinix maintained its ambition of 100% renewable energy coverage for its data centers, supported by partner initiatives and property ownership that aids in ESG (Environmental, Social, and Governance) efforts. Joint ventures, especially in the hyperscale segment, continued to unlock capital and risk sharing for high-growth capacity builds, though they also result in higher short-term capital expenditures and increased debt levels.
Looking ahead: Management outlook and investor watchpoints
The company raised full-year 2025 guidance across all key financial metrics. Revenue for fiscal 2025 is now projected at $9.23–$9.33 billion, up from prior guidance, representing 6–7% as-reported growth and 7–8% on a normalized, constant currency basis. Adjusted EBITDA guidance moved to $4.517–$4.597 billion (non-GAAP) for fiscal 2025, with margin expected around 49%. AFFO (non-GAAP) is forecast at $3.70–$3.78 billion for fiscal 2025. Q3 2025 revenue is expected to be between $2.314 and $2.334 billion, with continued margin improvements and capital spending focused on both recurring and non-recurring expansion projects.
During the quarter, Equinix declared no change to its quarterly dividend, with about $1.84 billion planned for the year. Investors may want to monitor trends in capital expenditures, as full-year capex guidance for 2025 now stands at $3.79–$4.29 billion, with a significant portion being non-recurring. Debt stood at $20.45 billion as of June 30, 2025, reflecting investment in global expansion, with management noting that future refinancing and interest costs could affect future results. Key themes for upcoming quarters include customer momentum in AI and cloud, continued development and leasing of new capacity, and risk management in regions where economic events or customer churn could produce volatility.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
