Digital Realty Trust Q2 revenue rises, lifts 2026 revenue, core FFO outlook on strong customer demand

Overview

• U.S. data center REIT's Q2 revenue rose 29% yr/yr to $1.9 bln

• Core FFO per share (excluding net promote) grew to $2.13 from $1.87 yr/yr

• Company raised 2026 Core FFO per share (ex-net promote) outlook to $8.15-$8.20

Outlook

• Digital Realty raises 2026 core FFO per share (excluding net promote) outlook to $8.15-$8.20

• Company lifts 2026 total revenue guidance to $6.85-$6.95 bln

• Digital Realty expects 2026 Adjusted EBITDA of $3.75-$3.85 bln

Result Drivers

• CUSTOMER DEMAND - Co said robust customer demand and strong execution across core growth areas drove Core FFO growth, per CEO Andy Power

• LEASING ACTIVITY - Record bookings and rental rate increases on renewal leases supported revenue and backlog growth

• NET PROMOTE INCOME - Q2 Core FFO included $188 mln of net promote income from successful development and leasing in a joint venture

Company press release: ID:nGNX9Brjc2

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 26 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy"

• Wall Street's median 12-month price target for Digital Realty Trust Inc is $220.00, about 23.3% above its July 22 closing price of $178.41

• The stock recently traded at 74 times the next 12-month earnings vs. a P/E of 86 three months ago

Reuters Recommended Reads

• July 22 - Singapore's Keppel DC REIT H1 gross revenue rises on acquisitions, strong rental performance

• July 21 - BlackRock-backed group commits $5 billion for Aligned Data Centers after completing acquisition

• July 22 - Trump set to expand power cost pledge on data centers

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)