In a world where digital transformation is paramount, Equinix EQIX continues to prove itself to be a pivotal player in the global digital infrastructure landscape.

Analysts also seem bullish on this Zacks Rank #2 (Buy) stock. The estimate revision trend for 2025 funds from operations (FFO) per share indicates a favorable outlook for the company, with estimates moving north over the past month.

In the past month, shares of Equinix have gained 0.5%, compared to the real estate market’s upside of 0.6%. Given its solid fundamentals and positive estimate revisions, the stock is likely to keep performing well in the quarters ahead.

Image Source: Zacks Investment Research

What Makes Equinix a Solid Pick?

Solid Market Fundamentals: Enterprises and service providers’ continued efforts to integrate artificial intelligence (AI) into their strategies and offerings and advance their digital transformation agendas are likely to keep demand up in the near term. Amid this, Equinix’s geographically diverse portfolio of IBX data centers is expected to benefit from enterprises’ increasing dependence on technology and the expedited implementation of digital transformation strategies.

Growth in Revenue Base: Equinix's business generates a substantial portion of monthly recurring revenue bookings (greater than 90% of total revenues in the last three years) from existing customers. The company generated 36% of its recurring revenues from its 50 largest customers in the first quarter of 2025. Given the growing demand for data exchanges worldwide, Equinix is well-poised to grow its revenue base. Higher revenues, along with lower costs, will expand margins and increase profitability in the long run. We estimate recurring revenues to increase 3.8% in 2025 on a year-over-year basis.

Expansion Efforts: Equinix continues focusing on acquisitions and developments to expand data center capacity in key markets and strengthen its competitive positioning and global reach. In February 2025, Equinix opened its first IBX data center in Jakarta, Indonesia, to meet the increasing digital infrastructure and connectivity needs in Southeast Asia.  In July 2024, Equinix entered into an agreement to acquire three data centers in the Philippines for $180 million from Total Information Management. The deal is expected to close in the third quarter of 2025. The company’s recent IBX data center openings and acquisitions, as well as xScale data center investments, have increased its total number of IBX data center facilities to 270 in 35 countries, as of March 31, 2025.