Key Moments
- Digital Realty Trust shares climbed 12.2% in morning trading after releasing stronger-than-expected second-quarter 2026 results.
- The company reported core FFO of $2.13 per share and revenue of $1.92 billion, both coming in well above Wall Street expectations.
- Management raised full-year 2026 core FFO guidance to $8.15-$8.20 per share, reinforcing confidence in ongoing demand from cloud and AI clients.
Earnings Beat Fuels Sharp Rally in DLR
Digital Realty Trust stock surged 12.2% in morning trading after the data center operator released its second-quarter 2026 earnings report the prior evening. The company posted core funds from operations (FFO) of $2.13 per share, surpassing analyst expectations by a wide margin. Revenue reached $1.92 billion, significantly ahead of the roughly $1.66 billion that Wall Street had anticipated.
At the same time, management increased its full-year 2026 core FFO outlook to a range of $8.15 to $8.20 per share. The new guidance lifted the midpoint above the earlier consensus forecast, indicating management’s continued conviction in demand trends from cloud and artificial intelligence customers.
Operational Metrics Highlight Strong Demand
Operational performance in the quarter reflected strong leasing activity and pricing dynamics. Digital Realty Trust reported record total bookings of $307 million and a record backlog of $1.9 billion in annualized base rent. Cash renewal rate increases of 25.4% underscored the company’s pricing power and the strength of its leasing environment.
| Metric | Reported Value |
|---|---|
| Core FFO per share (Q2 2026) | $2.13 |
| Revenue (Q2 2026) | $1.92 billion |
| Street revenue expectation | ~$1.66 billion |
| Full-year 2026 core FFO guidance | $8.15 – $8.20 per share |
| Record total bookings | $307 million |
| Backlog (annualized base rent) | $1.9 billion |
| Cash renewal rate increases | 25.4% |
Analyst Community Turns More Positive
The earnings surprise was followed by a series of supportive analyst actions early in the session. TD Cowen raised its rating on the stock to Buy from Hold and set a price target of $222. JPMorgan increased its target price to $235 from $230 while reiterating an Overweight stance. Oppenheimer, Wells Fargo, and Scotiabank also maintained their Buy-equivalent recommendations on the shares.
Stock Action and Market Context
Despite a largely directionless broader equity market, Digital Realty Trust’s stock move stood out. The S&P 500 was described as essentially unchanged, the Dow Jones rose slightly, and the Nasdaq traded modestly lower, suggesting that the rally in DLR was driven by company-specific developments rather than broader sector or macroeconomic forces. Peer data center REITs and infrastructure names were not reported as experiencing notable independent catalysts during the session.
Supported by the earnings beat, guidance increase, and a cluster of favorable analyst calls, Digital Realty Trust shares advanced to $201.26 in trading, nearing the stock’s 52-week high of $208.14. The reaction in the market positioned the quarter’s performance as a key turning point for investor sentiment toward the company.
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