Shares of Equinix Inc. surged in pre-market trading on Thursday, February 12, 2026, following the release of an optimistic long-term financial outlook that exceeded analyst projections. The data center real estate investment trust (REIT) saw its stock price climb approximately 8.6% to $941.81 ahead of the opening bell, building on a 1.3% gain from the previous day's close at $867.52. This positive investor sentiment was primarily driven by the company's 2026 revenue forecast, which is projected to be between $10.12 billion and $10.22 billion, surpassing the Wall Street consensus estimate of $10.07 billion.
Strong Guidance Amid AI Infrastructure Demand
Equinix's updated guidance underscores its pivotal role in the ongoing expansion of artificial intelligence infrastructure. The company cited accelerating customer deployments of generative AI and a strategic shift of data workloads closer to cloud and network hubs as key growth drivers. For the immediate quarter, management provided sales guidance of $2.50 billion to $2.54 billion, which also topped market expectations. This bullish outlook comes despite a slight fourth-quarter revenue shortfall; the company reported Q4 sales of $2.42 billion, narrowly missing estimates due to the delayed closing of a significant hyperscale leasing agreement now anticipated in early 2026.
The financial performance showed marked improvement, with net income from continuing operations reaching $264 million for the quarter, a notable reversal from a loss in the same period a year ago. In conjunction with the raised revenue outlook, Equinix also increased its quarterly cash dividend by 10% to $5.16 per share, payable on March 18 to shareholders of record as of February 25.
Operational Metrics and Capital Expenditure Plans
Beyond top-line growth, the company provided several key financial targets for 2026. It anticipates an adjusted EBITDA margin of approximately 51% and forecasts adjusted funds from operations (AFFO) per share in the range of $41.93 to $42.74, a critical cash-flow metric for REITs. Capital expenditures are expected to be substantial, projected between $3.655 billion and $4.155 billion for the year, reflecting the significant investment required to build out new data center capacity to meet soaring demand.
On an earnings call, CEO Adaire Fox-Martin emphasized robust demand, stating it has "never been higher." She highlighted stronger deal flow and specific customer wins, including a rollout of Equinix's Fabric Cloud Router for Salesforce across 14 countries and 21 metropolitan areas. The company has already secured about 45% of its first-quarter booking target and has locked in over $100 million in additional pre-sales, extending its revenue visibility into 2026.
Market Context and Analyst Sentiment
Equinix operates as a bellwether in the AI infrastructure buildout, a major theme influencing U.S. equity markets. Its performance is closely tied to trends in AI-driven spending, which creates immense demand for power, cooling, and high-speed networking capabilities. The company competes directly with peers like Digital Realty Trust. While the long-term opportunity is clear, investors are closely monitoring the pace at which new capacity can be brought online and the associated pricing power for data center operators.
Analyst reactions following the guidance were largely positive but reflected some caution regarding execution. Bank of America reiterated Equinix as a top sector pick, while Barclays noted the company's growth trajectory as "strong and above consensus expectations." However, Raymond James pointed to a "multi-year transition" ahead, warning of the substantial capital expenditure requirements and potential headwinds. These include rising construction costs, constrained power availability in key markets, foreign exchange volatility, and the risk of further delays in large leasing deals, such as the one at the Hampton, Georgia campus.
The company also filed an updated disclosure with the Securities and Exchange Commission (SEC) on Wednesday, providing revised details concerning U.S. federal income tax matters related to its REIT status and share ownership structure.
As regular trading commences, the market's focus will shift to whether the pre-market gains are sustained and to updates on the timing of the delayed hyperscale lease. The broader investment thesis for Equinix and the data center sector hinges on flawless execution in a high-stakes, capital-intensive environment where meeting the explosive demand for AI-ready infrastructure is paramount.