Equinix to Post Q3 Earnings: What's in Store for the Stock?

Equinix, Inc. EQIX is scheduled to report third-quarter 2025 results on Oct. 29, after market close. The company’s quarterly results are likely to display a year-over-year rise in revenues and adjusted funds from operations (AFFO) per share.In the previous quarter, this Redwood City, CA-based data center real estate investment trust (REIT) reported an AFFO of $9.91 per share, beating the Zacks Consensus Estimate of $9.19 per share. Results reflected higher revenues, led by strong demand for digital infrastructure and services.Over the preceding four quarters, EQIX’s AFFO per share surpassed the consensus estimate on three occasions and missed once, the average beat being 4.42%. This is depicted in the graph below: Equinix, Inc. Price and EPS Surprise Equinix, Inc. price-eps-surprise | Equinix, Inc. Quote Factors at Play for EquinixIn the third quarter of 2025, Equinix is likely to have benefited from the solid demand for interconnected data center infrastructure. Enterprises and service providers’ continued efforts to integrate artificial intelligence (AI) into their strategies and offerings and advance their digital transformation agendas are likely to keep demand up in the upcoming years.Moreover, the demand for Equinix’s interconnected ecosystem remains strong, driven by an acceleration in enterprise cloud adoption and increasing cloud or Internet customers’ demands for highly interconnected data center space.The company’s recurring revenue model, which comprises colocation, related interconnection and managed IT infrastructure services, is expected to have supported stable cash flows in the to-be-reported quarter, boosting the data center REIT’s top line.Q3 Projections for EQIXThe Zacks Consensus Estimate for colocation revenues is pegged at $1.61 billion, suggesting growth of 6.2% from $1.52 billion in the prior-year period. The consensus mark for interconnection revenues is pegged at $417 million, indicating growth of 8.6% from $384 million in the prior-year period.For the third quarter of 2025, Equinix projected revenues between $2.314 billion and $2.334 billion. The Zacks Consensus Estimate for the same stands at $2.32 billion, indicating an increase of 5.6% from the year-ago period’s reported figure.EQIX estimated adjusted EBITDA in the range of $1.139-$1.159 billion for the third quarter. Our estimate is pegged at $1.14 billion, implying a year-over-year increase of 9%.However, high interest expenses might have partly impeded the company’s quarterly performance. For the third quarter of 2025, our estimate for interest expenses implies a year-over-year increase of 13%.EQIX’s activities during the to-be-reported period were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for quarterly AFFO per share has been revised 16 cents downward to $9.26 over the past three months. However, it suggests a 2.3% increase from the prior-year quarter’s reported figure.What Our Quantitative Model Predicts for EQIXOur proven model predicts a likely surprise in terms of AFFO per share for Equinix this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an AFFO beat, which is the case here.Equinix currently has an Earnings ESP of +0.05% and a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks That Warrant a LookHere are two stocks from the broader REIT industry — Extra Space Storage EXR and Omega Healthcare Investors OHI — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.Extra Space Storage is slated to report quarterly numbers on Oct. 29. EXR has an Earnings ESP of +0.23% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.OHI, scheduled to report quarterly numbers on Oct. 30, has an Earnings ESP of +0.65% and a Zacks Rank of 3.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Equinix, Inc. (EQIX): Free Stock Analysis Report Omega Healthcare Investors, Inc. (OHI): Free Stock Analysis Report Extra Space Storage Inc (EXR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks