Morgan Stanley Lifts Equinix (EQIX) Price Target to $1,075 on Accelerating Revenue and AFFO Growth

Sajjl Nooranne

Sun, February 22, 2026 at 9:26 PM GMT+9 2 min read

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On February 13, Morgan Stanley raised its price target on Equinix, Inc. (NASDAQ:EQIX) to $1,075 from $950 and reiterated an Overweight rating after the company increased its 2026 revenue and adjusted funds from operations (AFFO) growth guidance. The analyst cited accelerating recurring revenue growth in the fourth quarter, supported by record gross bookings, as evidence of strengthening demand fundamentals.

The day prior, Scotiabank also raised its price target to $997 from $959 and maintained an Outperform rating, noting that Equinix, Inc. (NASDAQ:EQIX) is entering 2026 with a robust backlog and new site openings that are expected to drive earnings acceleration. In its February 11 fourth-quarter 2025 results, the company reported revenue of $2.4 billion, up 7% year over year, adjusted EBITDA of $1.2 billion with a margin of approximately 49%, and AFFO of $877 million, up 13% year over year.

For 2026, management guided to revenue growth of 9%–10%, adjusted EBITDA margin expansion to approximately 51%, AFFO growth of 9%–11%, and AFFO per share growth of 8%–10%. Equinix, Inc. (NASDAQ:EQIX) also expects to increase its quarterly dividend by approximately 10% year over year, with total 2026 cash dividends of roughly $2.0 billion. Expanding margins, visible recurring revenue, and dividend growth collectively support a compelling total return profile.

Equinix, Inc. (NASDAQ:EQIX) operates more than 260 carrier-neutral data centers across over 70 major metropolitan markets globally, providing colocation, interconnection, and edge services that enable secure, low-latency digital connectivity. The company is headquartered in Redwood City, California.

While we acknowledge the potential of EQIX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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