Assessing Equinix (EQIX) Valuation After Upgraded 2026 Outlook And AI Data Center Growth Plans

Equinix (EQIX) shares have been in focus after management updated its 2026 outlook, outlining higher expected revenue and recurring income, as well as plans for wider margins and a larger quarterly dividend.

See our latest analysis for Equinix.

The stronger guidance, recent dividend increase and record bookings have coincided with a 19.5% 1 month share price return and a 26.4% 3 month share price return, while the 5 year total shareholder return of 59.9% suggests momentum has built over a longer stretch.

If Equinix’s move has you looking more broadly at digital infrastructure, it could be worth scanning 34 AI infrastructure stocks as a starting point for other data center and connectivity names.

With Equinix trading at $945.64 and internal estimates implying an intrinsic value discount of about 33%, plus only a modest gap to the average analyst target, you have to ask: is there still a buying opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 6.2% Undervalued

With Equinix closing at $945.64 against a widely followed fair value estimate of $1,008.31, the current setup centers on whether the market is fully reflecting its digital infrastructure story, or still leaving some value on the table.

The rapid expansion and customer adoption of Equinix Fabric and interconnection services (with 8% Y/Y growth, over 4,000 customers, and record interconnection revenue) create new high-margin, asset-light revenue lines, supporting expansion of overall net margins.

Read the complete narrative.

To see how recurring revenue, margin assumptions, and a premium future earnings multiple all fit together in one model, the full narrative lays out the exact earnings path, revenue base, and profit profile that underpin that $1,008 fair value.

Result: Fair Value of $1,008.31 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the story could change if Equinix’s heavy data center investment runs into delays, or if key hyperscale customers slow spending or push harder on pricing.

Find out about the key risks to this Equinix narrative.

Another Angle On Valuation

That 6.2% discount to fair value looks modest once you compare it to how the market is actually pricing Equinix. On a P/E of 68.8x, the stock sits well above the Specialized REITs industry at 27.9x, its peer average at 31.5x, and even our fair ratio of 37.8x. This points to meaningful valuation risk if expectations cool.

Numbers like these can be a useful gut check, especially if you are balancing growth narratives against what you pay today. The real question is whether Equinix’s earnings story justifies staying this far above those benchmarks, or if the multiple could drift toward that fair ratio over time.

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If the mix of optimism and caution here feels familiar, do not wait around. Check the numbers yourself and weigh 4 key rewards and 1 important warning sign before you decide.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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