Equinix, Inc. stock research
FY2025 Q4
Equinix (EQIX) Gross Margin — Quarter Ended Dec 31, 2025
Equinix, a digital infrastructure company, reported revenue growth while cost of revenue also increased, resulting in stable gross profit but a slightly lower gross margin compared to the prior quarter. Year-over-year, revenue growth outpaced cost of revenue, leading to a higher gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Equinix, a digital infrastructure company, reported revenue growth while cost of revenue also increased, resulting in stable gross profit but a slightly lower gross margin compared to the prior quarter. Year-over-year, revenue growth outpaced cost of revenue, leading to a higher gross margin.
- The gross margin was primarily influenced by the relative growth rates of revenue and cost of revenue. Sequentially, cost of revenue grew at a pace similar to revenue, leaving gross profit unchanged but margin slightly lower; year-over-year, cost of revenue remained stable while revenue rose, improving margin.
- Compared to the immediately preceding quarter, gross margin was slightly lower. Compared to the same quarter one year earlier, gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
50.5%
Gross profit
$1.2B
Revenue
$2.4B
Cost of revenue
$1.2B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
+3.4 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 |
|---|---|---|---|---|
| Mar 31, 2025 | $2.2B | $1.1B | $1.1B | 51.3% |
| Jun 30, 2025 | $2.3B | $1.2B | $1.1B | 52.0% |
| Sep 30, 2025 | $2.3B | $1.2B | $1.1B | 50.7% |
| Dec 31, 2025 | $2.4B | $1.2B | $1.2B | 50.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.2 pts
Year-over-year change
Dec 31, 2024
+3.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin was primarily influenced by the relative growth rates of revenue and cost of revenue. Sequentially, cost of revenue grew at a pace similar to revenue, leaving gross profit unchanged but margin slightly lower; year-over-year, cost of revenue remained stable while revenue rose, improving margin.
Compared to the immediately preceding quarter, gross margin was slightly lower. Compared to the same quarter one year earlier, gross margin was higher.
Monitor whether the cost of revenue continues to grow at a rate similar to or faster than revenue.