Equinix, Inc. stock research
FY2025 Q1
Equinix (EQIX) Gross Margin — Quarter Ended Mar 31, 2025
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit remained stable sequentially while cost of revenue declined, resulting in an improved gross margin relative to both the prior quarter and the year-ago period.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit remained stable sequentially while cost of revenue declined, resulting in an improved gross margin relative to both the prior quarter and the year-ago period.
- The gross margin improvement was driven by a reduction in cost of revenue relative to revenue, as gross profit held steady while revenue declined slightly from the prior quarter.
- Compared to the immediately preceding quarter, gross margin improved as cost of revenue decreased while gross profit was unchanged. Compared to the same quarter one year earlier, gross margin also improved, with revenue and gross profit both higher and cost of revenue relatively stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.3%
Gross profit
$1.1B
Revenue
$2.2B
Cost of revenue
$1.1B
Quarter-over-quarter change
+4.2 pts
Year-over-year change
+2.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $2.2B | $1.1B | $1.1B | 49.9% |
| Sep 30, 2024 | $2.2B | $1.1B | $1.1B | 50.1% |
| Dec 31, 2024 | $2.3B | $1.1B | $1.2B | 47.1% |
| Mar 31, 2025 | $2.2B | $1.1B | $1.1B | 51.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+4.2 pts
Year-over-year change
Mar 31, 2024
+2.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by a reduction in cost of revenue relative to revenue, as gross profit held steady while revenue declined slightly from the prior quarter.
Compared to the immediately preceding quarter, gross margin improved as cost of revenue decreased while gross profit was unchanged. Compared to the same quarter one year earlier, gross margin also improved, with revenue and gross profit both higher and cost of revenue relatively stable.
Monitor the trajectory of cost of revenue, as its decline was the primary factor behind the gross margin improvement this quarter.