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Digital Realty Reports Strong Q2 2026 Results, Raises Full-Year Guidance
On July 23, 2026, Digital Realty Trust Inc. (NYSE: DLR), the world’s largest cloud‑ and carrier‑neutral data‑center platform, released its second‑quarter earnings, underscoring a resilient growth trajectory amid a crowded market.
The company reported net income of $458 million, or $1.21 per diluted share. While this figure is lower than the $2.94 per share posted a year earlier, it marks a jump from the $0.46 per share earned in Q1 2026. Total revenue climbed 18 % from the prior quarter and 29 % from Q2 2025, reaching $1.90 billion.
Funds from operations (FFO) for the period were $982 million, or $2.73 per share—up from $1.99 in Q1 2026 and $1.75 a year earlier. Core FFO per share, excluding net promote, rose to $2.13, compared with $2.04 in Q1 2026 and $1.87 in Q2 2025. Adjusted EBITDA edged 6 % from the preceding quarter to $978 million, reflecting a 19 % year‑over‑year increase.
Leasing activity remained robust. Digital Realty signed bookings expected to generate $307 million of annualized GAAP base rent at 100 % share during Q2 2026. At the company’s share, bookings totaled $208 million, including $108 million from the 0‑1 MW plus interconnection category. New leases signed in the quarter had a weighted‑average lag of nine months before commencement. At quarter‑end, the backlog of signed‑but‑not‑commenced leases stood at $1.90 billion of annualized GAAP base rent at 100 % share, or $1.40 billion at Digital Realty’s share. Renewal leases signed in the quarter generated $262 million of annualized cash rental revenue, with cash‑basis rental increases of 25.4 % and GAAP increases of 32.0 %.
In July, the company secured two hyperscale leases representing $410 million of annualized GAAP base rent at 100 % share, or $205 million at Digital Realty’s share. The 0‑1 MW and interconnection bookings for the quarter included $88 million from the 0‑1 MW category and $20 million from interconnection.
Investment activity in Q2 2026 included several land and asset acquisitions. Digital Realty purchased land in Marseille, France, for €46.5 million ($53.1 million) to support up to 48 MW of IT capacity; land in the Atlanta metro for $20 million to support over one gigawatt of IT capacity; land in Kansas City for $475 million to support up to two gigawatts of utility power; two data centers in Malaysia for $134 million; and a 64 % stake in three fully leased data centers in Northern Virginia, totaling 288 MW of IT capacity, for a gross value of $7.8 billion. The joint‑venture equity consideration for the Virginia assets was roughly $3.5 billion, comprising $1.2 billion in cash and 12.3 million shares of Digital Realty common stock.
On the balance‑sheet front, total debt stood at $18.6 billion as of June 30, 2026, with $17.0 billion unsecured and $1.6 billion secured. Net debt‑to‑Adjusted EBITDA was 4.7×. The company sold 6.2 million shares under its At‑The‑Market program during Q1 2026, raising about $1.2 billion, and had sold 13.5 million shares year‑to‑date, raising roughly $2.5 billion.
Digital Realty lifted its 2026 Core FFO per share (excluding net promote) outlook to $8.15 – $8.20 and its Constant‑Currency Core FFO per share (excluding net promote) outlook to $8.10 – $8.15. The company cited robust demand for data‑center space, strong renewal rates, and continued expansion in hyperscale and interconnection markets as the basis for the upgraded guidance.
CEO Andy Power said the quarter’s performance reflected “robust customer demand and strong execution across our core pillars of growth.” He highlighted the first‑time signing of more than $100 million in 0‑1 MW plus interconnection bookings, the acquisition of powered land in Kansas City, and the purchase of interests in Northern Virginia hyperscale data centers as key growth drivers.
Digital Realty will host an investor conference call on July 23, 2026, at 5:00 p.m. ET to discuss the results in more detail. President & CEO Andy Power and CFO Matt Mercier will be on the call.
In summary, Digital Realty’s Q2 2026 results demonstrate continued revenue and earnings growth, a strong leasing pipeline, and an expanded global footprint through recent acquisitions. The upgraded 2026 guidance signals confidence in sustained demand for data‑center space and interconnection services, while the debt profile remains manageable relative to earnings.
The company reported net income of $458 million, or $1.21 per diluted share. While this figure is lower than the $2.94 per share posted a year earlier, it marks a jump from the $0.46 per share earned in Q1 2026. Total revenue climbed 18 % from the prior quarter and 29 % from Q2 2025, reaching $1.90 billion.
Funds from operations (FFO) for the period were $982 million, or $2.73 per share—up from $1.99 in Q1 2026 and $1.75 a year earlier. Core FFO per share, excluding net promote, rose to $2.13, compared with $2.04 in Q1 2026 and $1.87 in Q2 2025. Adjusted EBITDA edged 6 % from the preceding quarter to $978 million, reflecting a 19 % year‑over‑year increase.
Leasing activity remained robust. Digital Realty signed bookings expected to generate $307 million of annualized GAAP base rent at 100 % share during Q2 2026. At the company’s share, bookings totaled $208 million, including $108 million from the 0‑1 MW plus interconnection category. New leases signed in the quarter had a weighted‑average lag of nine months before commencement. At quarter‑end, the backlog of signed‑but‑not‑commenced leases stood at $1.90 billion of annualized GAAP base rent at 100 % share, or $1.40 billion at Digital Realty’s share. Renewal leases signed in the quarter generated $262 million of annualized cash rental revenue, with cash‑basis rental increases of 25.4 % and GAAP increases of 32.0 %.
In July, the company secured two hyperscale leases representing $410 million of annualized GAAP base rent at 100 % share, or $205 million at Digital Realty’s share. The 0‑1 MW and interconnection bookings for the quarter included $88 million from the 0‑1 MW category and $20 million from interconnection.
Investment activity in Q2 2026 included several land and asset acquisitions. Digital Realty purchased land in Marseille, France, for €46.5 million ($53.1 million) to support up to 48 MW of IT capacity; land in the Atlanta metro for $20 million to support over one gigawatt of IT capacity; land in Kansas City for $475 million to support up to two gigawatts of utility power; two data centers in Malaysia for $134 million; and a 64 % stake in three fully leased data centers in Northern Virginia, totaling 288 MW of IT capacity, for a gross value of $7.8 billion. The joint‑venture equity consideration for the Virginia assets was roughly $3.5 billion, comprising $1.2 billion in cash and 12.3 million shares of Digital Realty common stock.
On the balance‑sheet front, total debt stood at $18.6 billion as of June 30, 2026, with $17.0 billion unsecured and $1.6 billion secured. Net debt‑to‑Adjusted EBITDA was 4.7×. The company sold 6.2 million shares under its At‑The‑Market program during Q1 2026, raising about $1.2 billion, and had sold 13.5 million shares year‑to‑date, raising roughly $2.5 billion.
Digital Realty lifted its 2026 Core FFO per share (excluding net promote) outlook to $8.15 – $8.20 and its Constant‑Currency Core FFO per share (excluding net promote) outlook to $8.10 – $8.15. The company cited robust demand for data‑center space, strong renewal rates, and continued expansion in hyperscale and interconnection markets as the basis for the upgraded guidance.
CEO Andy Power said the quarter’s performance reflected “robust customer demand and strong execution across our core pillars of growth.” He highlighted the first‑time signing of more than $100 million in 0‑1 MW plus interconnection bookings, the acquisition of powered land in Kansas City, and the purchase of interests in Northern Virginia hyperscale data centers as key growth drivers.
Digital Realty will host an investor conference call on July 23, 2026, at 5:00 p.m. ET to discuss the results in more detail. President & CEO Andy Power and CFO Matt Mercier will be on the call.
In summary, Digital Realty’s Q2 2026 results demonstrate continued revenue and earnings growth, a strong leasing pipeline, and an expanded global footprint through recent acquisitions. The upgraded 2026 guidance signals confidence in sustained demand for data‑center space and interconnection services, while the debt profile remains manageable relative to earnings.
