Shares of Digital Realty rose after the real estate investment trust logged better-than-expected funds from operations and revenue in its latest quarter and bumped up its outlook for the year.

The stock gained 15% to $205.44 on Friday. Shares are up 33% year to date.

The data-center-solutions company said core funds from operations per share, excluding net promote, were $2.13 for the second quarter, topping Wall Street's estimate of $1.98, according to analysts polled by FactSet. Chief Executive Andy Power said the metric marked a record, reflecting strong customer demand.

Net income for the quarter came to $453.3 million, or $1.21 a share, compared with $1.03 billion, or $2.94 a share, a year earlier. Analysts expected earnings of 48 cents a share.

Revenue climbed 29% year over year to $1.92 billion, above analyst estimates of $1.66 billion.

During the quarter, Digital Realty for the first time signed more than $100 million in bookings for 0 to 1 megawatt plus interconnection. It also continued to make progress in its hyperscale and private-capital verticals, including with the addition of powered land in the Kansas City metro area, Power said.

"Together, these growth vectors are driving double-digit bottom line growth, and we are focused on extending this runway for years to come," he said.

For the full year, the company now expects core funds from operations, excluding net promote, of $8.15 to $8.20 a share, up from a prior range of $8 to $8.10 a share.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

July 24, 2026 12:34 ET (16:34 GMT)

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