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SEC filingQ1 delivered revenue growth and operating leverage from global demand and expansions, with strong profitability gains despite data center investment costs and working capital impacts on cash flow.
Equinix reported solid Q1 results with revenue of $2.4 billion, up 9.8% from $2.2 billion in the prior year quarter. This growth reflects an increase in customer demand and our ability to capture that demand across our global platform, fueled by IBX data center expansions. Gross profit reached $1.3 billion, a 10.3% increase from $1.1 billion, delivering a stable 51.5% margin. The resilience in gross margins stems from revenue expansion outpacing cost increases tied to these investments, including higher depreciation from new capacity in regions like EMEA and Asia-Pacific.
Net income climbed 21.0% to $415 million from $343 million, with diluted EPS improving 20.0% to $4.20 from $3.50. This performance underscores core operational strength, though tempered by higher interest expenses from our capital-intensive expansion strategy. Net cash provided by operating activities was $717 million, down from $809 million year-over-year, primarily due to changes in working capital requirements despite the higher net income. This reflects the timing of collections and payments amid ongoing growth investments.
Looking forward, we continue to invest in expansion efforts to support customer demand, while navigating challenges like securing contracted energy supplies for our plans and potential regulatory pressures on GHG emissions that could raise expenses. These dynamics highlight our focus on long-term platform scalability, balancing growth opportunities with disciplined cost management to sustain profitability.