Equinix, Inc. (EQIX), headquartered in Redwood City, California, operates as a real estate investment trust. With a market cap of $94 billion, the company invests in interconnected data centers. Equinix focuses on developing network and cloud-neutral data center platform for cloud and information technology, enterprises, network, and mobile services providers, as well as for financial companies.
Shares of this world’s digital infrastructure company have underperformed the broader market over the past year. EQIX has gained 2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 11.9%. However, in 2026, EQIX stock is up 24.3%, surpassing the SPX’s marginal fall on a YTD basis.
Narrowing the focus, EQIX’s underperformance is also apparent compared to the Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (SRVR). The exchange-traded fund has gained about 7.5% over the past year. However, the stock’s returns on a YTD basis outshines the ETF’s 16.2% gains over the same time frame.
On Feb. 11, EQIX reported its Q4 results, and its shares closed up more than 10% in the following trading session. Its FFO of $8.91 per share missed Wall Street expectations of $9.07 per share. The company’s revenue was $2.4 billion, missing Wall Street forecasts of $2.5 billion. The company expects full-year FFO in the range of $41.93 to $42.74 per share, and revenue ranging from $10.1 billion to $10.2 billion.
For fiscal 2026, ending in December, analysts expect EQIX’s FFO per share to decline 5.3% to $36.29 on a diluted basis. The company’s FFO surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 31 analysts covering EQIX stock, the consensus is a “Strong Buy.” That’s based on 21 “Strong Buy” ratings, three “Moderate Buys,” and seven “Holds.”
The configuration has been relatively stable over the past three months.
On Feb. 13, Morgan Stanley (MS) kept an “Overweight” rating on EQIX and raised the price target to $1,075, implying a potential upside of 12.9% from current levels.
The mean price target of $1,001.89 represents a 5.2% premium to EQIX’s current price levels. The Street-high price target of $1,218 suggests an upside potential of 27.9%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
