Digital Realty Q2 Net Income Declines Despite Higher Revenue, Raises 2026 Core FFO Outlook

(RTTNews) - Digital Realty Trust Inc. (DLR) on Thursday, reported lower second-quarter earnings as last year's results benefited from significantly higher gains on property dispositions, although revenue continued to grow across its business. The data center REIT also raised its full-year 2026 Core Funds From Operations guidance, reflecting continued operational strength.

The company reported second-quarter net income attributable to common stockholders of $443.11 million, down 56.6 percent from $1.02 billion a year earlier.

Total operating revenue increased to $1.92 billion from $1.49 billion in the prior-year quarter. Operating income declined to $467.25 million from $1.14 billion.

Earnings per share fell to $1.21 from $2.94. Funds from operations (FFO) rose to $981.91 million, or $2.73 per share, from $600.33 million, or $1.75 per share. Core FFO increased to $955.76 million, or $2.65 per share, from $643.28 million, or $1.87 per share.

For 2026, Digital Realty raised its Core FFO per share outlook to $8.15-$8.20, up from the prior range of $8.00-$8.10. The company also increased its revenue outlook to $6.85-$6.95 billion, from $6.65-$6.75 billion, and lifted adjusted EBITDA guidance to $3.75-$3.85 billion, from $3.65-$3.75 billion.

DLR closed Thursday's trading at $179.34 up $0.93 or 0.52 percent on the New York Stock Exchange.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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