Equinix CEO Puts Neocloud Customers At Under 2% Of Recurring Revenue, Expects 'Winners And Losers'
Adaire Fox-Martin said AI-cloud customers as a group are a small slice of monthly recurring revenue, and no customer tops 2.5% of revenue.
Equinix's AI-infrastructure "neocloud" customers, taken together, make up less than 2% of its monthly recurring revenue, CEO and President Adaire Fox-Martin said on the company's third-quarter earnings call on Wednesday. Asked about the credit risk of the group, she said she is certain the segment will produce "winners and losers."
Fox-Martin on the neocloud question
A Truist analyst asked how material neoclouds are to revenue and recent bookings, and whether Equinix is changing its approach given their perceived riskier credit profile. Fox-Martin said the company is "very considered" in how it backs the segment, applying "strict credit protections" and managing its risk.
She said there are over 100 providers in the segment with many business models, and that the industry sees "massive investments" alongside "massive concerns from investors." Even counting every neocloud at Equinix, she said, the cohort "as a class represents less than 2% of our MRR."
In her prepared remarks, she said no single customer accounts for more than 2.5% of Equinix revenue.
She described neoclouds as moving from AI model training toward inference and a broader enterprise customer base. Equinix added 31 network nodes last quarter, for a total of 150, and neoclouds connect to Equinix Fabric to reach enterprise customers, she said.
Who Equinix is and how the quarter went
Equinix runs data centers where businesses, network providers and cloud companies rent space and power and connect directly to one another. Its 10-K for 2025 reported 280 data centers in 77 markets.
The company raised its 2026 guidance again. Fox-Martin said monthly recurring revenue grew 11% on a normalized, constant-currency basis, and annualized gross bookings hit a record $533 million, up 35%. Chief Financial Officer Olivier Leonetti said the full-year total revenue outlook rose by $100 million, to growth of about 12%.
Equinix's market value was $98.6 billion as of the report on Wednesday evening.
A Dubai delay, offset elsewhere
Responding to a Bank of America analyst on project delays, Fox-Martin said a Dubai project was delayed because of regional macro conditions. Because Equinix runs a portfolio, she said, it swapped other projects in. The company has 48 projects underway across 32 markets, and she said it also sees some power-related delays, though smaller power requests give it more certainty with utilities.
Fox-Martin's pitch to investors was breadth: no customer above 2.5% of revenue, and a neocloud group below 2% of recurring revenue.
Sources
- Equinix to Post Q3 Earnings: What's in Store for the Stock? — Yahoo Finance
- Equinix stock rises as strong bookings help Q3, 2026 outlook raised for third straight quarter (EQIX:NASDAQ) | Seeking Alpha — seekingalpha.com
- Equinix FFO of $8.64 beats by $0.64, revenue of $2.57B beats by $10M (NASDAQ:EQIX) | Seeking Alpha — seekingalpha.com
- Equinix (EQIX) Surpasses Q3 FFO and Revenue Estimates — Yahoo Finance
- Equinix Reports Third-Quarter Results and Raises 2026 Guidance — prnewswire.com
