Digital Realty Q2 FY2026: revenue up 28.9%, Core FFO outlook raised
Digital Realty's second quarter was a beat with an asterisk: revenue of $1.92 billion rose 28.9% year over year, Core FFO excluding net promote per share hit a record $2.13, and the 2026 outlook was raised again. Read the quarter in two layers — rent and interconnection, which is the durable business, versus promote and fee income, which is lumpy. The story is Bullish on operations, more mixed on the headline.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS was $1.21, far below the $2.94 reported in the same quarter last year — but that prior quarter carried a $931.8 million gain on property dispositions. Strip out real estate depreciation and one-off items and Core FFO per share excluding net promote was $2.13, up from $1.87 a year ago. Against the $0.50 consensus EPS figure provided, reported GAAP EPS of $1.21 is a wide beat, though the two figures may not be measured on the same basis.
Revenue came in at $1.92 billion, up 28.9% from $1.49 billion a year earlier and 17.7% above the $1.64 billion booked last quarter. The lift is not all rent: fee income jumped to $248.9 million from $34.9 million in Q1, tied to promote income from a development joint venture. Rental revenue on its own rose 14.2% year over year to $1.15 billion, which is the number to watch.
The company raised its 2026 revenue outlook, excluding promote income, to $6.85–$6.95 billion from $6.65–$6.75 billion as of April 23, and lifted Core FFO excluding net promote to $8.15–$8.20 per share. It also flagged a bigger drag from net non-cash rent adjustments, now $145–$150 million versus $90–$95 million previously, and raised net development CapEx to $4.25–$4.75 billion. Higher revenue and higher spending are moving up together.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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