Digital Realty Trust (DLR) reported first‑quarter 2026 results that surpassed consensus expectations, with total operating revenue of $1.64 billion—up 16% from the same period a year earlier—and net income of $175 million. Funds from operations totaled $700 million, or $1.99 per share, while core funds from operations reached $2.04 per share, beating the consensus estimate of $1.94–$1.95 per share.
Revenue growth was driven by a record $707 million of new bookings, including $98 million from the 0‑1 megawatt plus interconnection segment, and a $1.8 billion backlog that remains at 100% share. The 0‑1 megawatt segment, which focuses on AI‑oriented capacity, contributed double‑digit growth, reinforcing the company’s transition to an AI‑infrastructure platform.
Operating income rose to $920 million, and adjusted EBITDA reached $1.1 billion, reflecting a modest margin expansion despite higher operating expenses. The company’s cost discipline and pricing power in high‑margin AI contracts helped offset the impact of increased capital and operating costs associated with expanding its hyperscale portfolio.
Management raised its 2026 core FFO guidance to $8.00–$8.10 per share, up from the prior range of $7.80–$7.90. The upgrade signals confidence in sustained demand for AI‑driven data‑center capacity and a robust leasing pipeline, as the company continues to secure large hyperscale leases and grow its connectivity‑rich portfolio.
"We are swiftly advancing hyperscale AI‑oriented capacity in the U.S., growing our connectivity‑rich portfolio across key global markets, and broadening our capital base to prudently extend Digital Realty's runway for growth," said President and CEO Andrew P. Power. CFO Matthew R. Mercier added, "As Andy outlined, the first quarter reflected strong demand across our platform combined with disciplined execution, resulting in record quarterly financial results."
The results underscore Digital Realty’s strong market position and operational execution. The company’s ability to capture AI‑related demand, maintain pricing power, and manage costs positions it well for continued growth, while the raised guidance reflects management’s optimism about future demand and the company’s capacity to monetize its expanding portfolio.
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