Equinix, Inc. stock research
FY2025 Q2
Equinix (EQIX) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue remained stable. Gross margin improved sequentially and year-over-year, reflecting a stronger relationship between revenue growth and gross profit expansion.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue remained stable. Gross margin improved sequentially and year-over-year, reflecting a stronger relationship between revenue growth and gross profit expansion.
- The improvement in gross margin was primarily driven by revenue growing faster than cost of revenue, leading to a higher proportion of gross profit relative to revenue.
- Compared to the immediately preceding quarter, gross margin was higher, and it was also higher than the same quarter one year earlier. Revenue and gross profit both increased over these periods, while cost of revenue was relatively stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
52.0%
Gross profit
$1.2B
Revenue
$2.3B
Cost of revenue
$1.1B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+2.1 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $2.3B | $1.2B | $1.1B | 52.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+0.7 pts
Year-over-year change
Jun 30, 2024
+2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was primarily driven by revenue growing faster than cost of revenue, leading to a higher proportion of gross profit relative to revenue.
Compared to the immediately preceding quarter, gross margin was higher, and it was also higher than the same quarter one year earlier. Revenue and gross profit both increased over these periods, while cost of revenue was relatively stable.
Monitor the trend in cost of revenue relative to revenue, as its stability was a key factor in the margin improvement.