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FY2026 Q2
Improving
Digital Realty Trust, Inc. earnings call
Buzzberg read
Record 0-1 MW bookings of $108M
Digital Realty reported record core FFO, raised full-year guidance, and highlighted exceptional renewal spreads (25%+ overall, 66.7% on >1MW leases in APAC). The company entered Kansas City with 600MW of power, acquired Blackstone's stake in three Northern Virginia hyperscale data centers, and expanded its private capital platform via Columbia Capital. Backlog hit a record $1.9B, underpinning multi-year double-digit growth expectations. Record 0-1MW + interconnection bookings ($108M) and record interconnection bookings ($20.5M).
Buzzberg read Record 0-1 MW bookings of $108M Digital Realty reported record core FFO, raised full-year guidance, and highlighted exceptional renewal spreads (25%+ overall, 66.7% on >1MW leases in APAC). The company entered Kansas City with 600MW of power, acquired Blackstone's stake in three Northern Virginia hyperscale data centers, and expanded its private capital platform via Columbia Capital. Backlog hit a record $1.9B, underpinning multi-year double-digit growth expectations. Record 0-1MW + interconnection bookings ($108M) and record interconnection bookings ($20.5M). Read full analysisCollapse analysis
Digital Realty reported record core FFO, raised full-year guidance, and highlighted exceptional renewal spreads (25%+ overall, 66.7% on >1MW leases in APAC). The company entered Kansas City with 600MW of power, acquired Blackstone's stake in three Northern Virginia hyperscale data centers, and expanded its private capital platform via Columbia Capital. Backlog hit a record $1.9B, underpinning multi-year double-digit growth expectations. Record 0-1MW + interconnection bookings ($108M) and record interconnection bookings ($20.5M).
- Renewal spreads reached 25%+ overall, with >1MW renewals achieving 66.7% mark-to-market in supply-constrained markets like Singapore.
- Core FFO per share (ex-promote) of $2.13, up 14% YoY; full-year guidance raised to $8.15-$8.20.
- Development pipeline grew to 1.4GW under construction, 63% pre-leased at 11.5% yield; secured 600MW in Kansas City with runway to 2GW.
Revenue$1.924B+18% QoQ
EPS$1.21Reported
Gross margin8.42%Reported
Operating margin25.88%Reported
5 grounded callouts
What matters now
The highest-signal changes from the call.
Margins
Renewal spreads surged to record 25%+
Demand
Two hyperscale leases for $410M annual rent
Show 2 more callouts
Other
Backlog hits record $1.9B
Guidance
2026 core FFO guidance raised to $8.15-$8.20
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $1.924B | +18% QoQ |
| EPS | $1.21 | Reported |
| Gross margin | 8.42% | Reported |
| Operating margin | 25.88% | Reported |
| Free cash flow | $0.1486B | Reported |
| Capex | $0.9142B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Capex | FY2026 | $4.25B–$4.75B | $4.5B | Raised |
| EPS | FY2026 | $8.15–$8.20 | $8.18 | Raised |
AI, capex & demand read
Management read
confident
Management conveyed strong confidence driven by record bookings, record renewal spreads, and raised guidance; notable shift upward in confidence from prior quarters.
Management AI read
AI deployments continue to evolve, with customers valuing environments combining power, proximity and connectivity. AI-related bookings contributed to record 0-1 MW plus interconnection signings, with enterprise and service providers deploying private AI inference capabilities.
Investment and capacity
CapEx net of partner contributions is expected to increase by $750 million to $4.25-$4.75 billion, driven by recent leasing success and strong demand outlook. Development pipeline expanded to 1.4 GW under construction at a total cost of $20 billion.
all 1 named companies below
Companiesreturns since call
Partners
Partners
Andy Power
Digital Realty acquired Blackstone's stake in three Northern Virginia data centers, indicating ongoing partnership and capital recycling in hyperscale assets.
Evidence
“we announced the acquisition of Blackstone's ownership interest in three fully leased hyperscale data centers in Northern Virginia, totaling 288 megawatts of IT capacity. The transaction accretively increased our ownership... and continues”
External signals
Supply-chain alpha · 3returns since call
Renewal spreads on >1MW contracts hit 66.7% in Q2, driven by supply-constrained markets like Singapore, demonstrating extreme pricing power in premium data center capacity.
Evidence
“Renewal strength was strongest in the APAC region with outside spreads realized in Singapore... greater than a megawatt renewals accounted for 44% of the total and delivered a remarkable 66.7% mark-to-market.”
Digital Realty entered Kansas City with 600MW of utility power starting in 2028 and a long-term runway of up to 2GW, noting several hyperscaler self-build deployments already underway in that metro.
Evidence
“Kansas City... is really becoming a hyperscale hub or maybe a Midwest hub for both AI and cloud workloads... hyperscaler self-build deployments already underway in this market.”
The company generated its first promote income ($0.52/share) from the Blackstone joint venture, showcasing a new value-creation lever that could become recurring as JV assets are developed and leased.
Evidence
“We realized roughly $200 million of promote income associated with the Blackstone transaction this quarter... While promote income is new to Digital Realty, it should be viewed as a value creation oriented gain... may be realized periodica…”
Methodology & coverage
Management-only analysis. All 1 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.