Digital Realty Trust announced Thursday that it is raising its full-year financial forecast, citing steady leasing activity from cloud computing and AI-focused clients as a key growth driver. The news sent the company’s stock up 3% in after-hours trading.
Based in Austin, Texas, Digital Realty Trust is a real estate investment trust, commonly known as a REIT, that specializes in data centers, colocation services, and interconnection solutions. The company rents out managed data center space to clients across a wide range of industries, including cloud computing, information technology, social networking, communications, and manufacturing.
Digital Realty has emerged as a significant beneficiary of the global push to adopt generative AI, a technology that demands enormous computing power housed in purpose-built facilities.
Here is a closer look at the company’s updated numbers:
For fiscal year 2026, Digital Realty now expects adjusted funds from operations — a critical cash flow measure for REITs — to fall between $8.15 and $8.20 per share. That is an increase from its previous guidance of $8.00 to $8.10 per share.
The company also raised its annual total revenue forecast to a range of $6.85 billion to $6.95 billion, up from its earlier projection of $6.65 billion to $6.75 billion.
For the second quarter ending June 30, Digital Realty reported revenue of $1.92 billion — a 29% increase that surpassed analysts’ average estimate of $1.66 billion, according to data from LSEG. Adjusted funds from operations for the quarter came in at $2.65 per share, well above the $1.86 per share estimate.
Looking ahead, the company continues to pursue expansion into new markets as it seeks to capitalize on the worldwide AI boom. As part of that strategy, Digital Realty is set to acquire a larger ownership stake in three data centers located in Northern Virginia from asset manager Blackstone in a $3.5 billion cash-and-stock transaction, further cementing its presence in what is considered the world’s largest data center market.
