Equinix (EQIX) offers superior AFFO/share growth, operational strategy, and valuation versus Digital Realty (DLR), making it the preferred data center REIT investment. EQIX's cross-connect ecosystem drives positive same-store NOI and tenant stickiness, outpacing DLR's commodity-focused approach and mitigating renewal rent pressure. Recent multiple compression—EQIX now trades at 18.4x forward AFFO and 86% of NAV—creates a rare value opportunity despite continued robust growth.
Equinix stands as a critical infrastructure provider powering the global AI data center expansion, not an AI developer itself. EQIX delivered 5.2% revenue growth and 8.6% AFFO per share growth in Q3 2025, with robust demand and record bookings. Shares trade at a forward 12-month P/AFFO of 18.6, well below the 10-year average, offering a potential 23% cumulative return through 2026.
Investors need to pay close attention to EQIX stock based on the movements in the options market lately.
EQIX hosts Merck KGaA's new liquid-cooled high-performance computer in Germany, blending private and public cloud to boost scalable, efficient scientific computing.
The PGIM Jennison Utility Fund advanced and outperformed the 7.6% return of the S&P 500 Utilities Index over the third quarter. Key contributors were Talen Energy Corporation, NextEra and Sempra. Key detractors were Cheniere Energy, Public Service Enterprise Group and Equinix.
Lower interest rates create a favorable environment for REITs, enhancing valuations, reducing borrowing costs, and supporting high-yield distributions for income investors. Cohen & Steers Quality Income Realty Fund (RQI) and peers like RLTY, RNP, RFI, and IGR offer diversified exposure to top REITs with yields up to 15%. Welltower (WELL) and Equinix (EQIX) stand out among REIT holdings, with WELL benefiting from senior housing demand and EQIX positioned for data center growth.
Shares of Equinix Inc. NASDAQ: EQIX are up more than 6% after the data center operator delivered a mixed third-quarter earnings report. The company delivered a strong earnings per share (EPS) beat, with its $3.89 EPS surpassing estimates of $3.41 by 13.4%.
EQIX's Q3 results reflect higher recurring revenues and adjusted EBITDA, driven by strong demand for digital infrastructure and services.
The headline numbers for Equinix (EQIX) give insight into how the company performed in the quarter ended September 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Equinix (EQIX) came out with quarterly funds from operations (FFO) of $9.83 per share, beating the Zacks Consensus Estimate of $9.26 per share. This compares to FFO of $9.05 per share a year ago.
EQIX's Q3 earnings are likely to have gained from growing demand for data centers amid increasing digitization, though high interest expenses may have hurt.
Equinix (EQIX) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).