In addition, in light of regulation fair disclosure, it is our policy to not comment on our financial guidance during the quarter unless it is done through an explicit public disclosure. Our global scale, differentiated portfolio, and unmatched ecosystems are converting that demand into durable, profitable growth. Monthly recurring revenue growth accelerated to 11% year-over-year on a normalized and constant currency basis. This marks our third straight quarter of double-digit MRR growth with strong profit performance.
Total sales activity, inclusive of annualized gross bookings and pre-sales, grew over 30%, and we continue to see a record backlog. AFFO per share grew 18% on a normalized and constant currency basis, a direct result of the disciplined execution by our teams around the world. Given the strength of our performance as well as our bookings and pre-sales momentum, we are raising our full year guidance and long-term outlook. For 2026, we now expect revenue growth of 11%-12% and AFFO per share growth of 10%-12%.
This is the largest single guidance raise in the history of our company, reflecting broad-based durable demand and strong execution across our business. We continue to accelerate our capacity expansion to meet this growing demand. Looking further out, we expect to deliver top- and bottom-line growth well ahead of the outlook we provided last year. Through 2029, we expect total revenue growth in the 10%-13% range annually, with AFFO per share growing 9%-12% during the same period.
| Metric | Period | Current guidance |
|---|---|---|
| Total revenue growth | FY2026 | Raised to 11%-12% (guidance up $100M) |
| AFFO per share growth | FY2026 | Raised to 10%-12% (AFFO up ~$50M) |
| Adjusted EBITDA margin | FY2026 | ~51% (~200 bps improvement; adjusted EBITDA raised $62M) |
| MRR growth | Q3 2026 | 9%-11% YoY; total revenue +10-12%; adjusted EBITDA margin 51% |
| Capital expenditures | FY2026 | $5B-$6B (ex real-estate acquisitions and xScale), accelerating capacity |
| Total revenue growth | FY2027-2029 | 10%-13% per year (accelerating), adjusted EBITDA margin 53%+ by 2029, AFFO/share +9-12%/yr, CapEx $5-7B/yr |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +16% to $2.63B | 11% recurring revenue growth plus ~$120M of non-recurring xScale leasing fees (134 MW closed, including Hampton). |
| Monthly recurring revenue | +11% | Third consecutive quarter of double-digit growth, converting record bookings into revenue on broad-based AI-driven demand. |
| Adjusted EBITDA margin | +300 bps to 52% | Cost discipline, operating leverage and xScale leasing fees; ~150 bps ex-fees. |
| AFFO per share | +18% | Disciplined execution and margin expansion; GAAP diluted EPS of $4.83. |
| Annualized gross bookings | +23% to $424M | Second-highest volume on record; total sales activity including pre-sales up over 30%. |
| Net interconnections | +9,700 (record) | Ecosystem density and Fabric momentum (Cloud Router bookings +170%); interconnection revenue up ~9%. |
| Stabilized-asset yield | 27% cash-on-cash | 194 stabilized assets 82% utilized, reflecting differentiated infrastructure and firm pricing. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| AI as demand accelerant | AI emerging in the pipeline | The vast majority of the largest deals are AI-driven, spanning four use cases - stack (open models on private infrastructure to cut token cost), sovereign, batch (AI factories/training and batch inference with liquid cooling), and latency-sensitive metro inference. | — |
| Capacity acceleration and CapEx | Measured expansion | Doubling H2 cabinet deliveries and pulling 7,000+ cabinets into Q4 2026; $5-6B 2026 CapEx and $5-7B/yr through 2029, with 80%+ deployed in the top 25 metros where returns and ecosystems are strongest and typical builds are ~60 MW. | — |
| Interconnection and Fabric moat | Largest neutral ecosystem | Ecosystem ~2x the next-largest provider; record interconnection adds plus new Fabric Geo Zones (sovereignty, ~80 enterprises in preview) and 170% Cloud Router bookings growth, creating a growth flywheel and mark-to-market pricing opportunity. | — |
| Pricing power in constrained supply | Firm pricing | A demand-over-supply continuum supports firm per-kilowatt pricing and meaningful mark-to-market opportunity in constrained metros (Frankfurt, Amsterdam, Ashburn) over the long-range plan. | — |
| Margin expansion levers to 53%+ | ~51% target | Long-term 53%+ EBITDA margin driven by pricing, cost-of-revenue improvement, and SG&A scaling via a functionalized, standardized and increasingly AI-automated organization. | — |
| Balance sheet and capital discipline | Investment-grade, prudent leverage | Funding growth via ~50% retained cash flow plus lowest-cost debt, targeting only a ~1-turn leverage increase and ~150 bps higher blended cost of capital while preserving investment-grade ratings; 3 GW of land under control with power largely contracted or high-confidence. | — |