Digital Realty Trust, Inc. Q2 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Key Highlights

  • Record results driven by strong execution across colocation/connectivity, hyperscale, and strategic private capital pillars. Full spectrum data center strategy delivering broad-based momentum globally.
  • Core FFO (ex-net promote income) reached $2.13 per share, up 14% year-over-year from Q2 2025, exceeding expectations.
  • Guidance raised for full-year 2026 core FFO (ex-promote) to $8.15-$8.20 per share (midpoint implies 10% constant currency growth vs. 2025); second consecutive year of double-digit growth expected.
  • Strategic transactions announced across all growth pillars to enhance value proposition and long-term runway.

Financial Performance

  • Same-capital cash NOI grew 8.9% year-over-year (7.2% constant currency), driven by 8.2% revenue growth and expense discipline.
  • Leverage remained at 4.7x (below 4.6x pro forma for timing adjustments), down ~0.4x over the past 12 months despite ~$6B in net new investments.
  • Core FFO included $0.52 promote benefit from Blackstone transaction and $0.07 from Singapore business interruption insurance; reported core FFO was $2.65 per share.
  • Development CapEx: $1.1B in Q2 (net of partners); YTD $2B. Delivered 76 MW capacity (60% pre-leased); started 312 MW development.

Leasing and Bookings

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Operator : Good afternoon, and welcome to the Digital Realty Second Quarter 2026 Earnings Call. Please note, this event is being recorded. I would now like to turn the call over to Jordan Sadler, Digital Realty's Senior Vice President of Public and Private Investor Relations. Jordan, please go ahead. Jordan Sadler : Thank you, operator, and welcome, everyone, to Digital Realty's Second quarter 2026 Earnings Conference Call. Joining me on today's call are President and CEO, Andy Power; and CFO, Matt Mercier; Chief Investment Officer, Greg Wright; and Chief Technology Officer, Chris Sharp; and Chief Revenue Officer, Colin McLean, are also on the call and will be available for Q&A. Management will be making forward-looking statements, including guidance and underlying assumptions on today's call. Forward-looking statements are based on expectations that involve risks and uncertainties that could cause actual results to differ materially. For a further discussion of risks related to our business, see our 10-K and subsequent filings with the SEC. This call will contain certain non-GAAP financial information. Reconciliations to the most directly comparable GAAP measures are included in the supplemental package furnished to the SEC and available on our website. Before I turn the call over to Andy, let me offer a few key takeaways from our second quarter results. First, we had an extraordinarily productive quarter, reflecting strong execution across our key growth vectors, which tra

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