Shares of data center real estate investment trust Equinix held steady in premarket activity Friday, trading near $960 after surging more than 10% in the previous session. The move followed the company's bullish financial outlook for 2026, which highlighted accelerating demand for artificial intelligence infrastructure.
AI Demand Fuels Upgraded Forecast
Equinix raised its full-year 2026 revenue guidance to a range of $10.12 billion to $10.22 billion, exceeding analyst expectations. For the first quarter, the company projects revenue between $2.50 billion and $2.54 billion. CEO Adaire Fox-Martin stated that customer demand "has never been higher," noting that approximately 60% of its largest deals in the fourth quarter were driven by AI workloads.
The company reported fourth-quarter revenue of $2.42 billion, with net income from continuing operations reaching $264 million, a significant improvement from a loss in the prior-year period. Annualized gross bookings hit a record $474 million for the quarter.
Dividend Increase and Analyst Reaction
In a move for income investors, Equinix boosted its quarterly cash dividend by 10% to $5.16 per share. The dividend is payable on March 18 to shareholders of record as of February 25.
Analysts responded to the updated guidance. Goldman Sachs analyst Michael Ng raised his price target on the stock to $894 from $785 while maintaining a neutral rating, according to reports.
Market Context and Sector Challenges
The rally places Equinix squarely within the market's focus on AI infrastructure investments. "We see this as a 'prove it' year for AI," said Jack Herr of GuideStone Funds, capturing the investor sentiment of separating durable demand from hype.
Macroeconomic factors also influence the rate-sensitive REIT sector. January U.S. consumer price data showed a 0.2% increase, below forecasts, with core CPI rising 0.3%—a mix that may lead the Federal Reserve to remain cautious on interest rate cuts.
The sector faces ongoing challenges, including power constraints, construction timelines, and supply chain disruptions, as noted in Equinix's annual filing. The company also anticipates closing a delayed xScale Hampton lease transaction in early 2026.