Digital Realty shares jumped 14% after record Core FFO per share and a raised outlook. The data center REIT's Q2 results highlight strong AI and cloud demand, with revenue up 29%.
Shares of Digital Realty Trust surged more than 14% on Wednesday after the data center REIT posted a record Core FFO per share and lifted its full-year forecast. The stock hit $205.51, up $26.17, with volume topping 6.2 million shares. Earlier in the session it reached $207.43.
Digital Realty reported second-quarter revenue of $1.9 billion, an 18% increase from the first quarter and 29% higher than a year ago. Net income came in at $458 million, or $1.21 a share, compared with $0.46 in the prior quarter and $2.94 in the same period last year. The year-ago figure was inflated by one-time items, the company said.
Core FFO per share, excluding net promote income, rose to $2.13 from $2.04 in the first quarter and $1.87 a year earlier. On a constant-currency basis, Core FFO per share was $2.11 for the quarter and $4.07 for the first six months of 2026. Adjusted EBITDA reached $978 million, up 6% sequentially and 19% year over year.
Two special items boosted the quarter: $188 million of net promote income tied to the successful development and leasing of three data centers in a joint venture, and a $94 million insurance settlement, net of tax, related to a previously disclosed 2024 incident. About $27 million of that settlement was recorded in Core FFO as business interruption recovery; the rest, covering property damage, was excluded.
The results underscore the strength of demand for data center capacity, driven by cloud migration and artificial intelligence workloads. Digital Realty operates more than 300 facilities across 55 metropolitan areas in 30 countries. The company raised its full-year Core FFO guidance, though it did not disclose the new range in the release.
For the broader data center REIT sector, the readthrough is mixed. Digital Realty's beat reflects its specific development pipeline and a one-time insurance recovery. Rivals like Equinix and CyrusOne face their own supply and pricing dynamics. Still, the revenue growth and leasing activity signal that enterprise and hyperscaler demand remains robust, even as some investors worry about a capacity glut.
AlphaScala's proprietary model gives Digital Realty a score of 51 out of 100, with a "Mixed" label. The stock trades in the Real Estate sector. The full profile is available on the DLR stock page.
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