Valued at a market cap of $89.5 billion, Equinix, Inc. (EQIX) is a global leader in digital infrastructure and data center services. Headquartered in Redwood City, California, the company operates more than 250 data centers across five continents, enabling businesses to securely interconnect and scale their digital operations.
Shares of Equinix have underperformed the broader market over the last year. The stock has gained 6.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 20.7%. In 2025, the stock is down 2.5%, compared to SPX's 2.2% gains on a YTD basis.
Zooming in further, EQIX also underperformed the Real Estate Select Sector SPDR Fund (XLRE), which has gained 9.5% over the past year and 3.8% in 2025.
On Feb. 12, EQIX announced its fourth-quarter results, resulting in a fall of more than 1% in the following trading sessions. The company reported revenue of $2.26 billion, slightly missing the $2.27 billion estimate but reflecting a 7.1% year-over-year increase. The company posted a loss of $0.14 per share, while its adjusted EBITDA margin improved to 45% from 44% in the prior-year quarter, highlighting stronger operational efficiency.
For the current fiscal year, ending in December, analysts expect EQIX’s FFO to decline 5.5% to $33.10 on a diluted basis. The company's earnings surprise history is promising. It beat the consensus estimate in all four quarters.
Among the 27 analysts covering EQIX stock, the consensus rating is a “Strong Buy.” That’s based on 22 “Strong Buy” ratings, one “Moderate Buy,” and four “Holds.”
This configuration is more bullish than a month ago, with 20 analysts suggesting a “Strong Buy.”
On Feb. 14, Irvin Liu from Evercore ISI maintained a “Buy” rating on Equinix, with a price target of $1,035, implying upside potential of 12.5%.
The mean price target of $1,029.08 implies an upside potential of about 11.9%. The Street-high target price of $1,218 suggests the stock could rally as much as 32.4%.
