Shares of global digital infrastructure giant Equinix, Inc. (NASDAQ: EQIX) skyrocketed more than 8% in early trading on Thursday, February 12, 2026, after the company reported blockbuster fourth-quarter results and issued an unexpectedly aggressive financial forecast for the 2026 fiscal year. While the company saw a slight technical miss on top-line GAAP revenue for the final quarter of 2025, investors were overwhelmingly focused on a massive beat in Adjusted Funds From Operations (AFFO) and management’s confident signal that the second wave of the Artificial Intelligence revolution—AI inference—is now driving a new era of data center demand.
The market reaction pushed Equinix shares toward the $954 mark, a near-record high, as the company cemented its role as the backbone of the hybrid cloud and enterprise AI economy. By raising its quarterly dividend by 10% to $5.16 per share, Equinix further signaled that its capital-intensive expansion into AI-ready infrastructure is already yielding significant cash flow benefits.
A "Record-Breaking" Quarter Anchored by Interconnection
Equinix described its performance in the fourth quarter of 2025 as the "best in company history," characterized by record-high bookings and a pivotal milestone in its interconnection business. The company reported Q4 revenue of $2.42 billion, a 7% increase year-over-year. While this was marginally below some analyst projections of $2.46 billion due to the timing of non-recurring installation fees, the underlying quality of the earnings was undeniable. The company posted an AFFO per share of $8.91, obliterating the consensus estimate of $5.38, driven by high-margin interconnection services and a disciplined approach to operational costs.
The quarter’s growth was largely powered by a historic expansion in interconnection—the physical and virtual links that allow companies to exchange data privately and directly. Equinix surpassed 500,000 total interconnections globally during the period, a testament to the increasing "data gravity" of its global footprint. Net billing cabinet growth also saw its highest increase in three years, adding 4,300 cabinets as enterprise customers scrambled to secure space for their private AI clusters.
This performance comes at the tail end of a strategic multi-year pivot where Equinix shifted focus from general-purpose colocation to high-density, AI-optimized environments. Management noted that nearly 60% of the largest deals signed in the fourth quarter were specifically driven by AI workloads, with a significant portion coming from traditional enterprise sectors like finance, healthcare, and manufacturing, rather than just the "hyperscale" cloud titans.
Sector Winners: Data Center REITs and Infrastructure Providers
The primary winner in this earnings cycle is Equinix itself, which has successfully defended its premium valuation by proving it can monetize the AI boom through "inference"—the stage where AI models are actually used to process data, which requires the low-latency, distributed network that Equinix specializes in. However, the positive sentiment rippled across the broader data center and infrastructure REIT sector. Digital Realty Trust, Inc. (NYSE: DLR) also saw a sympathetic lift in its share price. While Digital Realty focuses more on massive-scale "wholesale" data centers for AI training, Equinix’s results suggest that the demand for "retail" colocation at the network's edge is equally robust.
Other potential beneficiaries include Iron Mountain Incorporated (NYSE: IRM), which has been aggressively expanding its data center footprint to complement its legacy document storage business. As Equinix reports a shortage of available high-density power in major markets like Northern Virginia and Frankfurt, smaller or more localized players may find themselves with increased pricing power. Conversely, legacy real estate companies that have failed to upgrade their facilities with liquid cooling and the power densities required by modern GPUs (Graphics Processing Units) could find themselves sidelined as "losers" in this cycle, facing higher vacancy rates as tenants migrate to AI-ready facilities.
The equipment providers that supply Equinix are also positioned for a strong 2026. With Equinix announcing a capital expenditure plan of up to $4.2 billion for the coming year, companies like Vertiv Holdings Co (NYSE: VRT), which provides cooling and power management solutions, are likely to see sustained demand. The sheer scale of the 2026 guidance—projecting revenue to cross the $10 billion threshold for the first time—suggests that the "picks and shovels" of the data center industry remain in a multi-year bull market.
The Shift from Training to Inference: A Global Trend
The broader significance of Equinix’s latest report lies in what it reveals about the evolution of Artificial Intelligence. For the past two years, the market has been obsessed with AI "training"—the massive, centralized compute power required to build Large Language Models (LLMs). This favored hyperscale giants and massive data center footprints. Equinix’s results indicate that we have entered the "inference" phase, where those models are integrated into everyday business applications.
This shift is a structural tailwind for Equinix because inference requires data centers to be located near the users and the data sources to minimize latency. Unlike training, which can happen in remote, rural areas with cheap power, inference happens in the heart of major metropolitan hubs. This "edge-out" trend is creating a scarcity of space in tier-one markets, leading to the strong pricing power Equinix showcased in its Q4 results.
Furthermore, the results highlight a regulatory and policy shift toward "data sovereignty." As governments in Europe and Asia tighten rules on where data can be stored and processed, Equinix’s vast global network of 250+ data centers across 33 countries has become a critical strategic asset. Companies are increasingly choosing Equinix to ensure their AI applications comply with local laws while maintaining global connectivity—a competitive advantage that is difficult for newer entrants to replicate.
Looking Ahead: The $10 Billion Milestone
The road ahead for Equinix in 2026 looks paved with high-margin growth. The company’s guidance for the full year 2026 projects total revenue between $10.123 billion and $10.223 billion, representing a 10% to 11% increase. Perhaps more impressively, Adjusted EBITDA is expected to grow by 13.5%, implying expanding margins even as the company spends billions on new construction. This margin expansion is a rare feat for a capital-heavy REIT and reflects the high value-add of its interconnection ecosystem.
Short-term challenges remain, particularly regarding the availability of power. In several major markets, utility companies are struggling to keep up with the electrical demands of new AI data centers. Equinix’s ability to navigate these "power bottlenecks" through sustainable energy agreements and advanced cooling technologies will be the key to hitting its 2026 targets. Investors should also watch for potential strategic acquisitions; as the cost of capital remains high for smaller players, Equinix may use its surging stock price as a currency to roll up smaller, regional data center operators to further expand its edge presence.
The Bottom Line for Investors
Equinix’s performance as of February 2026 has quelled any fears that the data center boom was a temporary bubble. By posting record bookings and providing a clear path to double-digit growth, the company has demonstrated that the digital transformation of the global economy is still in its middle innings. The focus on AI inference and the milestone of 500,000 interconnections show that Equinix is no longer just a landlord—it is the central nervous system of the internet.
Moving forward, the market will be watching to see if the company can maintain its construction pace amid global supply chain constraints and power shortages. However, with a raised dividend and a massive backlog of demand, Equinix has established itself as a premier defensive-growth play for the late 2020s. For investors, the takeaway is clear: the demand for the physical real estate that houses the cloud and AI is not just growing; it is accelerating.
This content is intended for informational purposes only and is not financial advice.
