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AUSTIN, Texas, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Digital Realty (NYSE: DLR), the world’s largest cloud- and carrier-neutral data center platform, announced today its financial results for the third quarter of 2026. All per share results are presented on a fully diluted basis.

Highlights

Reported net income available to common stockholders of $0.48 per share in 3Q26, compared to $0.15 in 3Q25Reported FFO per share of $1.97 in 3Q26, compared to $1.65 in 3Q25Reported Core FFO per share of $2.10 in 3Q26, compared to $1.89 in 3Q25Signed record total bookings during 3Q26 that are expected to generate $855 million of annualized GAAP base rent at 100% share; at Digital Realty’s share, bookings were a record $627 million, including a record $152 million within the 0-1 megawatt plus interconnection categoryReported rental rate increases on renewal leases of 11.8% on a cash basis in 3Q26Reported a record total backlog of $2.5 billion of annualized GAAP base rent at 100% share at the end of 3Q26; at Digital Realty’s share, the backlog was a record $1.8 billionRaised 2026 Core FFO per share (excluding net promote) outlook to $8.30 - $8.35 and 2026 Constant-Currency Core FFO per share (excluding net promote) outlook to $8.25 - $8.30
Financial Results

Digital Realty reported total revenues of $1.9 billion in the third quarter of 2026, 10% higher than the previous quarter when excluding $201 million of promote income in the second quarter and 21% above the same quarter last year.

The company delivered net income of $194 million in the third quarter of 2026, as well as net income available to common stockholders of $185 million and $0.48 per share, compared to $1.21 per share in the previous quarter and $0.15 per share in the same quarter last year.

Digital Realty generated Adjusted EBITDA of $978 million in the third quarter of 2026, which was in line with the previous quarter and a 13% increase over the same quarter last year.

The company reported Funds From Operations (FFO) of $742 million in the third quarter of 2026, or $1.97 per share, compared to $2.73 per share in the previous quarter and $1.65 per share in the same quarter last year.

Digital Realty delivered Core FFO per share (excluding net promote) of $2.10 in the third quarter of 2026, compared to $2.13 per share in the previous quarter and $1.89 per share in the same quarter last year. Digital Realty delivered Core FFO per share (excluding net promote) of $6.27 for the nine-month period ended September 30, 2026. Digital Realty delivered Constant-Currency Core FFO per share (excluding net promote) of $2.10 in the third quarter of 2026 and $6.18 per share for the nine-month period ended September 30, 2026.

“Digital Realty extended its track record of execution in the third quarter with record leasing, an expanding backlog, and another quarter of double-digit earnings growth,” said Digital Realty President and Chief Executive Officer Andy Power. “These results underscore the global strength of customer demand for connectivity-rich environments, trusted execution, and a well-capitalized partner with the reach and capabilities to support their evolving requirements across the digital infrastructure landscape.”

Leasing Activity

In the third quarter, Digital Realty signed total bookings that are expected to generate $855 million of annualized GAAP rental revenue, at 100% share; at Digital Realty’s share, total bookings were $627 million, including a $130 million contribution from the 0-1 MW category and a $22 million contribution from interconnection.

The weighted-average lag between new leases signed during the third quarter of 2026 and the contractual commencement date was 17 months. The backlog of signed-but-not-commenced leases at quarter-end was $2.5 billion of annualized GAAP base rent at 100% share, and $1.8 billion at Digital Realty’s share. In addition, Digital Realty also signed renewal leases representing $261 million of annualized cash rental revenue during the quarter. Rental rates on renewal leases signed during the third quarter of 2026 increased 11.8% on a cash basis and 17.0% on a GAAP basis.

New leases signed during the third quarter of 2026, at Digital Realty’s share, are summarized by region and product as follows:

           Annualized GAAP       Base Rent   GAAP Base RentAmericas (in thousands) Megawatts per Kilowatt0-1 MW  $39,587 11.6  $284> 1 MW   203,002 64.0   264Other(1)   357 —   —Total  $242,947 75.6  $267         EMEA(2)        0-1 MW  $68,062 23.1  $245> 1 MW   9,906 6.4   129Other(1)   94 —   —Total  $78,062 29.5  $220         Asia Pacific(2)        0-1 MW  $21,979 6.5  $282> 1 MW   261,271 73.2   297Other(1)   136 —   —Total  $283,386 79.7  $296         All Regions(2)        0-1 MW  $129,628 41.2  $262> 1 MW   474,180 143.6   275Other(1)   587 —   —Total  $604,395 184.8  $272         Interconnection  $22,209 N/A  N/A         Grand Total at DLR Share  $626,604 184.8  $272         Grand Total at 100% Share  $855,275 267.2  $259 Note: Totals may not foot due to rounding differences.
(1) Other includes Powered Base Building® shell capacity as well as storage and office space within fully improved data center facilities.
(2) Based on quarterly average exchange rates during the three months ended September 30, 2026.

Investment Activity

During the third quarter of 2026, Digital Realty acquired $742 million of land:

Near the Indianapolis metro area, to support over one gigawatt of IT capacity.Adjacent to Digital Realty’s Fort Gillem campus in Atlanta to support hyperscale and enterprise colocation IT capacity.Two parcels in the Chicago metro area to support hyperscale and enterprise colocation for an aggregate of 360 megawatts of IT capacity.In the Charlotte metro area to support development of up to 600 megawatts of IT capacity.Near Digital Realty’s Ostend campus in Frankfurt, Germany to support up to 14 megawatts of IT capacity.Near Crete, Greece to support up to 5 megawatts of IT capacity. As previously disclosed, during the quarter, Digital Realty entered into a new joint venture with Rönesans Infrastructure to develop data centers across Türkiye for $33 million. The joint venture's first investment will be a data center in Ankara, expected to support more than 22 megawatts of IT capacity.

  Subsequent to quarter end, Digital Realty also closed on the following acquisitions:

Land near Brussels, Belgium for approximately €15 million or $17 million.The freehold interest in the land underlying our campus in Dugny, France for approximately €80 million or $90 million.An additional 16% stake in Teraco for approximately $688 million from certain minority shareholders, principally through the issuance of 3.4 million shares of common stock, increasing Digital Realty’s ownership from 61% to approximately 77%.
Subsequent to quarter end, we closed $1.4 billion of initial cornerstone equity commitments to our new perpetual capital strategy focused on stabilized hyperscale data centers in North America.

Balance Sheet

Digital Realty had approximately $19.5 billion of total debt outstanding as of September 30, 2026, comprised of $17.9 billion of unsecured debt and approximately $1.6 billion of secured debt and other debt. At the end of the third quarter of 2026, net debt-to-Adjusted EBITDA was 5.2x, debt-plus-preferred-to-total enterprise value was 23.2% and fixed charge coverage was 4.8x. 

During the quarter, the company sold approximately 2.4 million shares of common stock under its At-The-Market (ATM) equity issuance program at a weighted average price of $191.84 per share, for net proceeds of approximately $450 million. Year-to-date, the company has sold approximately 15.9 million shares under its ATM equity issuance program at a weighted average price of $185.98 per share, for net proceeds of approximately $2.9 billion.

In October, the company issued:

€1 billion of 5.125% euro notes due 2036, for net proceeds of approximately €1 billion ($1.1 billion); and CHF225 million of 1.6803% Swiss bonds due 2029, CHF185 million of 2.0600% due 2032 and CHF100 million of 2.4150% due 2036, for aggregate net proceeds of approximately CHF508 million ($611 million).  2026 Outlook

Digital Realty raised its 2026 Core FFO per share (excluding net promote) outlook to $8.30 - $8.35 and its 2026 Constant-Currency Core FFO per share (excluding net promote) outlook to $8.25 - $8.30. The assumptions underlying the outlook are summarized in the following table.

           As of As of As of As ofTop-Line and Cost Structure February 5, 2026 April 23, 2026 July 23, 2026 October 29, 2026Total revenue (excluding promote income) $6.600 - $6.700 billion $6.650 - $6.750 billion $6.850 - $6.950 billion $7.050 - $7.125 billionNet non-cash rent adjustments(1) ($90 - $95 million) ($90 - $95 million) ($145 - $150 million) ($145 - $150 million)Adjusted EBITDA $3.600 - $3.700 billion $3.650 - $3.750 billion $3.750 - $3.850 billion $3.800 - $3.850 billionG&A $610 - $620 million $615 - $625 million $620 - $630 million $640 - $650 million         Internal Growth        Rental rates on renewal leases        Cash basis 6.0% - 8.0% 6.5% - 8.5% 9.0% - 11.0% 10.0% - 12.0%GAAP basis 8.5% - 10.5% 9.5% - 11.5% 12.0% - 14.0% 13.0% - 15.0%Year-end portfolio occupancy(2) +50 - 100 bps +50 - 100 bps +75 - 125 bps +75 - 125 bps"Same-Capital" cash NOI growth(3) 4.0% - 5.0% 4.0% - 5.0% 4.25% - 5.25% 5.25% - 5.75%         Foreign Exchange Rates        U.S. Dollar / Pound Sterling $1.30 - $1.35 $1.32 - $1.37 $1.32 - $1.37 $1.32 - $1.37U.S. Dollar / Euro $1.13 - $1.18 $1.15 - $1.20 $1.13 - $1.18 $1.13 - $1.18         External Growth        Dispositions / Asset Contributions        Dollar volume $500 - $1,000 million $500 - $1,000 million $1,000 - $1,500 million $1,500 - $2,000 millionCap rate 0.0% - 10.0% 0.0% - 10.0% 0.0% - 10.0% 0.0% - 10.0%Development        CapEx (Net of Partner Contributions)(4) $3,250 - $3,750 million $3,500 - $4,000 million $4,250 - $4,750 million $4,250 - $4,750 millionAverage stabilized yields 10.0%+ 10.0%+ 10.0%+ 10.0%+Enhancements and other non-recurring CapEx(5) $30 - $35 million $30 - $35 million $30 - $35 million $30 - $35 millionRecurring CapEx + capitalized leasing costs(6) $400 - $425 million $400 - $425 million $400 - $425 million $400 - $425 million         Balance Sheet        Long-term debt issuance        Dollar amount $1,000 - $1,500 million $1,500 - $2,000 million $1,500 - $2,000 million ~$1,750 millionPricing 4.0% - 4.5% 4.0% - 4.5% 4.5% - 5.5% ~4.0%Timing Mid-Year Mid-Year 2H-2026 October         Net income per diluted share $2.55 - $2.65 $2.65 - $2.75 $3.10 - $3.15 $2.90 - $2.95Real estate depreciation and (gain) / loss on sale $4.90 - $4.90 $4.95 - $4.95 $5.30 - $5.30 $5.65 - $5.65Funds From Operations / share (NAREIT-Defined) $7.45 - $7.55 $7.60 - $7.70 $8.40 - $8.45 $8.55 - $8.60Non-core expenses and revenue streams $0.45 - $0.45 $0.40 - $0.40 $0.25 - $0.25 $0.25 - $0.25Net Promote $0.00 - $0.00 $0.00 - $0.00 ($0.50) - ($0.50) ($0.50) - ($0.50)Core Funds From Operations / share (excluding net promote) $7.90 - $8.00 $8.00 - $8.10 $8.15 - $8.20 $8.30 - $8.35Foreign currency translation adjustments $0.00 - $0.00 ($0.05) - ($0.05) ($0.05) - ($0.05) ($0.05) - ($0.05)Constant-Currency Core FFO / share (excluding net promote) $7.90 - $8.00 $7.95 - $8.05 $8.10 - $8.15 $8.25 - $8.30 (1) Net non-cash rent adjustments represent the sum of straight-line rental revenue and straight-line rental expense, as well as the amortization of above- and below-market leases (i.e., ASC 805 adjustments). 
(2) Year-end portfolio occupancy guidance based on IT load (kW).
(3) The “Same-Capital” pool includes properties owned as of December 31, 2024 with less than 5% of total rentable square feet under development. It excludes properties that were undergoing, or were expected to undergo, development activities in 2025-2026, properties classified as held for sale and contribution, and properties sold or contributed to joint ventures for all periods presented. The 2026 “Same-Capital” cash NOI growth outlook is presented on a constant currency basis.
(4) Excludes land acquisitions and includes Digital Realty’s share of joint venture and fund contributions. Figure is net of joint venture and fund partners’ share of contributions.
(5) Other non-recurring CapEx represents costs incurred to enhance the capacity or marketability of operating properties, such as network fiber initiatives and software development costs. 
(6) Recurring CapEx represents non-incremental improvements required to maintain current revenues, including second-generation tenant improvements and leasing commissions.

Note: The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items, and the information is not available without unreasonable effort. Please see Non-GAAP Financial Measures in this document for further discussion.

Non-GAAP Financial Measures

This document contains non-GAAP financial measures, including FFO, Core FFO, Core FFO (excluding net promote), Constant Currency Core FFO (excluding net promote), Adjusted FFO, Net Operating Income (NOI), “Same-Capital” Cash NOI and Adjusted EBITDA. A reconciliation from U.S. GAAP net income available to common stockholders to FFO, a reconciliation from FFO to Core FFO, a reconciliation from Core FFO (excluding net promote) to Constant Currency Core FFO (excluding net promote), a reconciliation from Core FFO to Adjusted FFO, a reconciliation from NOI to Cash NOI, and definitions of FFO, Core FFO, Constant Currency Core FFO, Core FFO (excluding net promote), Adjusted FFO, NOI and “Same-Capital” Cash NOI are included as an attachment to this document. A reconciliation from U.S. GAAP net income available to common stockholders to Adjusted EBITDA, a definition of Adjusted EBITDA and definitions of net debt-to-Adjusted EBITDA, debt-plus-preferred-to-total enterprise value, cash NOI, and fixed charge coverage ratio are included as an attachment to this document.

The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income attributable to common stockholders per diluted share, which is the most directly comparable forward-looking GAAP financial measure. This includes, for example, external growth factors, such as dispositions, and balance sheet items such as debt issuances, that have not yet occurred, are out of the company's control and/or cannot be reasonably predicted. For the same reasons, the company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Investor Conference Call

Prior to Digital Realty’s investor conference call at 5:00 p.m. ET / 4:00 p.m. CT on October 29, 2026, a presentation will be posted to the Investors section of the company’s website at https://investor.digitalrealty.com. The presentation is designed to accompany the discussion of the company’s third quarter 2026 financial results and operating performance. The conference call will feature President & Chief Executive Officer Andy Power and Chief Financial Officer Matt Mercier.

A live webcast of the call will be available on the Investors section of Digital Realty’s website at https://investor.digitalrealty.com. The webcast will be archived for one year and the replay will be available shortly after the conclusion of the live event.

About Digital Realty

Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITAL®, the company’s global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation, from cloud and digital transformation to emerging technologies like artificial intelligence (AI), and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 55+ metros across 30+ countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and X.

Contact Information

Matt Mercier
Chief Financial Officer
Digital Realty

Jordan Sadler / Jim Huseby
Investor Relations
Digital Realty
[email protected]

Consolidated Quarterly Statements of Operations
Third Quarter 2026Unaudited and in Thousands, Except Per Share Data
          Three Months Ended Nine Months Ended 30-Sep-2630-Jun-2631-Mar-2631-Dec-2530-Sep-25 30-Sep-2630-Sep-25Rental revenues$1,224,802 $1,145,936 $1,103,946 $1,074,703 $1,045,708  $3,474,684 $3,009,784 Tenant reimbursements - Utilities 423,919  352,897  333,909  356,084  332,681   1,110,726  898,373 Tenant reimbursements - Other 47,032  45,391  38,093  34,406  37,302   130,516  116,834 Interconnection and other 131,356  130,409  124,278  123,414  120,399   386,043  355,320 Fee income 75,298  248,927  34,899  45,692  36,398   359,124  91,468 Other 11  480  47  372  4,746   538  6,242 Total Operating Revenues$1,902,418 $1,924,040 $1,635,173 $1,634,671 $1,577,234  $5,461,631 $4,478,021          Utilities$477,537 $396,454 $372,385 $398,185 $375,627  $1,246,376 $1,028,301 Rental property operating 304,193  291,408  266,115  295,948  278,292   861,716  784,615 Property taxes 60,408  55,160  54,964  50,791  51,823   170,532  150,249 Insurance 4,654  4,744  4,799  4,711  4,508   14,197  13,937 Depreciation and amortization 539,471  507,106  499,511  493,458  497,002   1,546,088  1,401,178 General and administration 170,644  153,316  151,923  159,283  139,911   475,883  394,778 Severance, equity acceleration and legal expenses 2,643  4,384  2,835  4,937  1,794   9,862  6,484 Transaction and integration expenses 48,961  38,703  15,685  36,083  86,559   103,349  149,007 Provision for impairment —  —  —  78,553  —   —  — Other expenses 179  13,508  23  98  3,297   13,710  3,604 Total Operating Expenses$1,608,690 $1,464,783 $1,368,240 $1,522,047 $1,438,813  $4,441,713 $3,932,153          Operating income before gain (loss) on disposition of properties, net$293,728 $459,257 $266,933 $112,624 $138,420  $1,019,918 $545,868 Gain (loss) on disposition of properties, net 8,403  7,988  873  42,865  19,780   17,264  952,721 Operating Income$302,131 $467,245 $267,806 $155,489 $158,200  $1,037,182 $1,498,589          Equity in earnings (loss) of unconsolidated entities (18,433) 36  (1,833) 4,659  (16,944)  (20,230) (36,646)Interest and other income (expense), net 11,937  137,944  45,342  42,797  47,735   195,223  118,255 Interest (expense) (93,273) (113,943) (116,384) (116,516) (113,584)  (323,600) (321,431)Income tax benefit (expense) (8,751) (33,675) (16,008) 9,673  (11,695)  (58,434) (41,713)Gain (loss) on debt extinguishment and modifications —  —  (4,119) 9  —   (4,119) — Net Income$193,611 $457,607 $174,804 $96,111 $63,713  $826,022 $1,217,054          Net income (loss) attributable to noncontrolling interests 1,735  (4,318) 4,470  2,536  4,099   1,887  (7,112)Net Income Attributable to Digital Realty Trust, Inc.$195,346 $453,289 $179,274 $98,647 $67,812  $827,909 $1,209,942          Preferred stock dividends (10,181) (10,181) (10,181) (10,181) (10,181)  (30,543) (30,543)Net Income (Loss) Available to Common Stockholders$185,165 $443,108 $169,093 $88,466 $57,631  $797,366 $1,179,399          Weighted-average shares outstanding - basic 372,193  354,118  345,013  343,493  341,370   357,208  338,565 Weighted-average shares outstanding - diluted 379,799  361,542  353,255  351,570  349,234   364,903  346,631 Weighted-average fully diluted shares and units 385,937  367,605  359,300  357,430  355,165   370,963  352,571          Net income / (loss) per share - basic$0.50 $1.25 $0.49 $0.26 $0.17  $2.23 $3.48 Net income / (loss) per share - diluted$0.48 $1.21 $0.46 $0.24 $0.15  $2.14 $3.35  Funds From Operations and Core Funds From Operations
Third Quarter 2026Unaudited and in Thousands, Except Per Share Data
           Three Months Ended Nine Months EndedReconciliation of Net Income to Funds From Operations (FFO)30-Sep-2630-Jun-2631-Mar-2631-Dec-2530-Sep-25  30-Sep-2630-Sep-25          Net Income (Loss) Available to Common Stockholders$185,165 $443,108 $169,093 $88,466 $57,631   $797,366 $1,179,399 Adjustments:         Noncontrolling interest in operating partnership 4,000  9,000  4,000  2,000  2,000    17,000  26,000 Real estate related depreciation and amortization(1) 527,646  499,106  490,965  484,260  487,182    1,517,717  1,370,884 Reconciling items related to noncontrolling interests (23,943) (24,292) (23,726) (22,753) (22,888)   (71,961) (63,406)Unconsolidated entities real estate related depreciation and amortization 57,047  62,972  60,291  70,260  65,922    180,310  180,955 (Gain) loss on real estate transactions (8,403) (7,988) (226) (42,865) (19,780)   (16,617) (952,721)Provision for impairment —  —  —  78,553  —    —  — Funds From Operations$741,512 $981,906 $700,398 $657,921 $570,067   $2,423,815 $1,741,111           Weighted-average shares and units outstanding - basic 378,331  360,181  351,059  349,354  347,301    363,268  344,504 Weighted-average shares and units outstanding - diluted(2) (3) 385,937  367,605  359,300  357,430  355,165    370,963  352,571           Funds From Operations per share - basic$1.96 $2.73 $2.00 $1.88 $1.64   $6.67 $5.05           Funds From Operations per share - diluted(2) (3)$1.97 $2.73 $1.99 $1.89 $1.65   $6.68 $5.07           Reconciliation of FFO to Core FFO30-Sep-2630-Jun-2631-Mar-2631-Dec-2530-Sep-25  30-Sep-2630-Sep-25          Funds From Operations$741,512 $981,906 $700,398 $657,921 $570,067   $2,423,815 $1,741,111 Other non-core revenue adjustments(4) (3,219) (80,837) (29) (10,633) (4,746)   (84,085) (2,443)Transaction and integration expenses 48,961  38,703  15,685  36,083  86,559    103,349  149,007 Gain (loss) on debt extinguishment and modifications —  —  4,119  (9) —    4,119  — Severance, equity acceleration and legal expenses(5) 2,643  4,384  2,835  4,937  1,794    9,862  6,484 (Gain) loss on FX and derivatives revaluation 7,515  (1,608) (4,398) (16,295) 252    1,509  7,015 Other non-core expense adjustments(6) (2,149) 13,208  (2,538) (21,794) 2,075    8,521  6,465 Core Funds From Operations$795,263 $955,756 $716,071 $650,210 $656,001   $2,467,090 $1,907,639           Net promote —  (187,871) —  —  —    (187,871) —           Core Funds From Operations (excluding net promote)$795,263 $767,885 $716,071 $650,210 $656,001   $2,279,219 $1,907,639           Weighted-average shares and units outstanding - diluted(2) (3) 378,770  360,648  351,293  349,740  347,700    363,687  344,873           Core Funds From Operations per share - diluted(2)$2.10 $2.65 $2.04 $1.86 $1.89   $6.78 $5.53           Core FFO per share (excluding net promote) - diluted(2)$2.10 $2.13 $2.04 $1.86 $1.89   $6.27 $5.53           (1) Real Estate Related Depreciation & Amortization30-Sep-2630-Jun-2631-Mar-2631-Dec-2530-Sep-25  30-Sep-2630-Sep-25          Depreciation and amortization per income statement$539,471 $507,106 $499,511 $493,458 $497,002   $1,546,088 $1,401,178 Non-real estate depreciation  & amortization (11,825) (8,000) (8,546) (9,198) (9,820)   (28,371) (30,294)Real Estate Related Depreciation & Amortization$527,646 $499,106 $490,965 $484,259 $487,182   $1,517,717 $1,370,884  (2) Certain of Teraco's minority indirect shareholders have the right to put their shares in an upstream parent company of Teraco to Digital Realty in exchange for cash or the equivalent value of shares of Digital Realty common stock, or a combination thereof. U.S. GAAP requires Digital Realty to assume the put right is settled in shares for purposes of calculating diluted EPS. This same approach was utilized to calculate FFO/share. The potential future dilutive impact associated with this put right will be excluded from Core FFO and AFFO until settlement occurs – causing diluted share count to be higher for FFO than for Core FFO and AFFO. When calculating diluted FFO, Teraco related noncontrolling interest is added back to the FFO numerator as the denominator assumes all shares have been put back to Digital Realty.

                         Three Months Ended   Nine Months Ended   30-Sep-26  30-Jun-26  31-Mar-26  31-Dec-25  30-Sep-25   30-Sep-26  30-Sep-25Teraco noncontrolling share of FFO  $19,190  $19,979  $15,410  $18,240  $17,018   $54,579  $46,154Teraco related minority interest  $19,190   $19,979   $15,410   $18,240   $17,018    $54,579   $46,154 (3) For all periods presented, we have excluded the effect of dilutive series J, series K and series L preferred stock, as applicable, that may be converted into common stock upon the occurrence of specified change in control transactions as described in the articles supplementary governing the series J, series K and series L preferred stock, as applicable, which we consider highly improbable. See above for calculations of FFO and the share count detail section that follows the reconciliation of Core FFO to AFFO for calculations of weighted average common stock and units outstanding. For definitions and discussion of FFO, Core FFO and Core FFO (excluding net promote), see the Definitions section.
(4) Includes development fees included in gains, lease termination fees, gain on sale of equity investment included in other income, insurance proceeds related to property damage and unconsolidated entities non-core adjustments within equity in earnings.
(5) Relates to severance and other charges related to the departure of company executives and integration-related severance.
(6) Includes non-real estate amortization expense, write-offs associated with non-recurring legal and insurance expenses, impact of foreign tax rate changes, non-core adjustments attributable to noncontrolling interests, impact on tax expense due to insurance proceeds related to property damage and adjustments to reflect our proportionate share of transaction costs associated with noncontrolling interests.

Adjusted Funds From Operations (AFFO)
            Third Quarter 2026
Unaudited and in Thousands, Except Per Share Data
 Three Months Ended Nine Months Ended
Reconciliation of Core FFO to AFFO 30-Sep-26 30-Jun-2631-Mar-26 31-Dec-25 30-Sep-25 30-Sep-26 30-Sep-25                  Core Funds From Operations  $795,263  $955,756 $716,071  $650,210  $656,001  $2,467,090  $1,907,639   Adjustments:               Non-real estate depreciation  7,422  8,000 8,546  9,198  9,820  23,968  30,293  Amortization of deferred financing costs  6,368  6,343 6,443  6,781  6,565  19,154  19,564  Amortization of debt discount/premium  1,612  1,595 1,581  1,341  1,293  4,788  3,669  Non-cash stock-based compensation expense  22,789  21,379 20,908  17,327  18,174  65,076  52,900  Straight-line rental revenue  (44,053)  (26,955) (21,741)  (34,351)  (33,351)  (92,749)  (66,741)  Straight-line rental expense  1,714  (602) (1,410)  (97)  (271)  (298)  (906)  Above- and below-market rent amortization  (2,142)  (962) (1,007)  (972)  (864)  (4,111)  (2,322)  Deferred tax (benefit) / expense  (13,146)  (12,681) (10,919)  (26,184)  18,187  (36,746)  (13,044)  Leasing compensation and internal lease commissions  15,987  13,857 15,476  14,644  15,013  45,320  43,139  Recurring capital expenditures (1)  (105,789)  (76,674) (59,665)  (168,539)  (77,998)  (242,128)  (175,386)                  Adjusted Funds From Operations (2)  $686,025  $889,056 $674,283  $469,358  $612,569  $2,249,364  $1,798,805                  Weighted-average shares and units outstanding - basic  378,331  360,181 351,059  349,354  347,301  363,268  344,504  Weighted-average shares and units outstanding - diluted (3)  378,770  360,648 351,293  349,740  347,700  363,687  344,873                  AFFO per share - diluted (3) $1.81  $2.47 $1.92  $1.34  $1.76  $6.18  $5.22                    Dividends per share and common unit $1.22 $1.22$1.22 $1.22 $1.22 $3.66 $3.66                  Diluted AFFO Payout Ratio 67.4% 49.5%63.6% 90.9% 69.2% 59.2% 70.2%                     Three Months Ended  Nine Months Ended
 Share Count Detail 30-Sep-26 30-Jun-2631-Mar-26  31-Dec-25  30-Sep-25 30-Sep-26 30-Sep-25                    Weighted Average Common Stock and Units Outstanding  378,331   360,181 351,059   349,354   347,301   363,268   344,504  Add: Effect of dilutive securities  439 467 234   386   399   419   369  Weighted Avg. Common Stock and Units Outstanding - diluted  378,770   360,648 351,293   349,740   347,700   363,687   344,873   (1) Recurring capital expenditures represent non-incremental building improvements required to maintain current revenues, including second-generation tenant improvements and external leasing commissions. Recurring capital expenditures do not include acquisition costs contemplated when underwriting the purchase of a building, costs which are incurred to bring a building up to Digital Realty’s operating standards, or internal leasing commissions.
(2) For a definition and discussion of AFFO, see the Definitions section. For a reconciliation of net income (loss) available to common stockholders to FFO and Core FFO, see above.
(3) For all periods presented, we have excluded the effect of dilutive series J, series K and series L preferred stock, as applicable, that may be converted into common stock upon the occurrence of specified change in control transactions as described in the articles supplementary governing the series J, series K and series L preferred stock, as applicable, which we consider highly improbable. See above for calculations of FFO and for calculations of weighted average common stock and units outstanding.  

Consolidated Balance Sheets   Third Quarter 2026
Unaudited and in Thousands, Except Per Share Data
             30-Sep-26 30-Jun-26 31-Mar-26 31-Dec-2530-Sep-25Assets          Investments in real estate:          Real estate $34,399,727  $ 33,700,303  $ 31,633,899  $ 31,359,298  $ 30,194,891 Construction in progress  10,634,707   9,770,384   5,381,071   4,976,785   5,422,338 Land held for future development  769,433   122,841   199,681   91,130   66,668 Investments in Real Estate $45,803,867  $43,593,528  $37,214,651  $36,427,213  $35,683,897 Accumulated depreciation and amortization  (11,150,810)  (10,736,127)  (10,355,181)  (9,993,596)  (9,665,380)Net Investments in Properties $34,653,057  $32,857,401  $26,859,470  $26,433,617  $26,018,517 Investment in unconsolidated entities  3,805,462   3,548,297   3,536,757   3,427,903   3,690,749 Net Investments in Real Estate $38,458,519  $36,405,698  $30,396,227  $29,861,520  $29,709,266            Operating lease right-of-use assets, net $ 1,071,340  $ 1,093,015  $ 1,105,080  $ 1,135,645  $ 1,167,398 Cash and cash equivalents  802,903   1,864,796   2,426,631   3,451,647   3,299,703 Accounts and other receivables, net(1)  1,809,964   1,564,955   1,430,242   1,358,895   1,496,105 Deferred rent, net  832,808   792,045   765,198   750,907   710,624 Goodwill  10,050,563   9,592,127   9,591,250   9,711,953   9,647,754 Customer relationship value, deferred leasing costs and other intangibles, net  2,714,699   2,595,046   2,053,368   2,134,698   2,080,898 Assets held for sale and contribution  —   —   441,064   349,826   116,624 Other assets  783,719   610,232   650,913   655,377   500,262 Total Assets $56,524,515  $54,517,914  $48,859,973  $49,410,468  $48,728,634            Liabilities and Equity          Global unsecured revolving credit facilities, net $ 1,640,466  $ 709,756  $ 707,961  $ 899,090  $ 1,152,042 Unsecured term loans, net  424,364   427,681   432,450   439,536   438,933 Unsecured senior notes, net of discount  15,809,482   15,906,794   16,013,977   16,194,441   15,808,565 Secured and other debt, net of discount  1,620,303   1,591,118   842,245   869,068   825,894 Operating lease liabilities  1,192,434   1,209,459   1,218,509   1,253,217   1,285,067 Accounts payable and other accrued liabilities  3,609,832   3,241,792   2,419,888   2,600,979   2,377,726 Deferred tax liabilities  1,100,877   1,124,899   1,093,955   1,124,724   1,151,374 Accrued dividends and distributions  —   —   —   428,337   — Security deposits and prepaid rents  886,252   759,979   733,974   754,920   699,528 Obligations associated with assets held for sale and contribution  —   —   —   182   283 Total Liabilities $26,284,010  $24,971,478  $23,462,959  $24,564,494  $23,739,412            Redeemable noncontrolling interests  1,596,431   1,567,282   1,594,718   1,498,975   1,535,972            Equity          Preferred Stock:  $0.01 par value per share, 110,000 shares authorized:          Series J Cumulative Redeemable Preferred Stock(2) $ 193,540  $ 193,540  $ 193,540  $ 193,540  $ 193,540 Series K Cumulative Redeemable Preferred Stock(3)  203,264   203,264   203,264   203,264   203,264 Series L Cumulative Redeemable Preferred Stock(4)  334,886   334,886   334,886   334,886   334,886 Common Stock: $0.01 par value per share, 502,000 shares authorized(5)  3,716   3,669   3,459   3,406   3,400 Additional paid-in capital  35,077,627   34,160,611   30,093,165   29,350,487   29,182,332 Dividends in excess of earnings  (7,212,298)  (6,939,476)  (6,946,676)  (6,690,722)  (6,358,501)Accumulated other comprehensive loss, net  (488,408)  (522,024)  (512,885)  (469,198)  (533,891)Total Stockholders' Equity $28,112,327  $27,434,470  $23,368,753  $22,925,663  $23,025,030            Noncontrolling Interests          Noncontrolling interest in operating partnership $ 521,934  $ 533,622  $ 426,853  $ 415,456  $ 420,280 Noncontrolling interest in consolidated entities  9,813   11,062   6,690   5,880   7,940            Total Noncontrolling Interests $531,747  $544,684  $433,543  $421,336  $428,220            Total Equity $28,644,074  $27,979,154  $23,802,296  $23,346,999  $23,453,250            Total Liabilities and Equity $56,524,515  $54,517,914  $48,859,973  $49,410,468  $48,728,634  (1) Net of allowance for doubtful accounts of $78,043 and $85,274 as of September 30, 2026 and September 30, 2025, respectively.
(2) Series J Cumulative Redeemable Preferred Stock, 5.250%, $200,000 liquidation preference ($25.00 per share), 8,000 shares issued and outstanding as of September 30, 2026 and September 30, 2025.
(3) Series K Cumulative Redeemable Preferred Stock, 5.850%, $210,000 liquidation preference ($25.00 per share), 8,400 shares issued and outstanding as of September 30, 2026 and September 30, 2025.
(4) Series L Cumulative Redeemable Preferred Stock, 5.200%, $345,000 liquidation preference ($25.00 per share), 13,800 shares issued and outstanding as of September 30, 2026 and September 30, 2025.
(5) Common Stock: 374,888 and 343,041 shares issued and outstanding as of September 30, 2026 and September 30, 2025, respectively.

Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization and Financial Ratios
Third Quarter 2026Unaudited and Dollars in Thousands          Three Months EndedReconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)(1)30-Sep-2630-Jun-2631-Mar-2631-Dec-2530-Sep-25      Net Income (Loss) Available to Common Stockholders$185,165 $443,108 $169,093 $88,466 $57,631 Interest expense 93,273  113,943  116,384  116,516  113,584 (Gain) loss on debt extinguishment and modifications —  —  4,119  (9) — Income tax expense (benefit) 8,751  33,675  16,008  (9,673) 11,695 Depreciation and amortization 539,471  507,106  499,511  493,458  497,002 EBITDA$826,660 $1,097,832 $805,115 $688,758 $679,912 Unconsolidated JV real estate related depreciation and amortization 57,047  62,972  60,291  70,260  65,922 Unconsolidated JV interest expense and tax expense 37,874  37,142  35,814  38,498  44,795 Severance, equity acceleration and legal expenses 2,643  4,384  2,835  4,937  1,794 Transaction and integration expenses 48,961  38,703  15,685  36,083  86,559 (Gain) loss on disposition of properties, net (8,403) (7,988) (873) (42,865) (19,780)Provision for impairment —  —  —  78,553  — Other non-core adjustments, net(2) 4,474  (82,084) (4,270) (25,033) 2,523 Net promote —  (187,871) —  —  — Noncontrolling interests (1,735) 4,318  (4,470) (2,536) (4,099)Preferred stock dividends 10,181  10,181  10,181  10,181  10,181 Adjusted EBITDA$977,702 $977,589 $920,307 $856,836 $867,807  (1) For definitions and discussion of EBITDA and Adjusted EBITDA, see the Definitions section.
(2) Includes foreign exchange remeasurement (gain) loss, net, impact of foreign tax rate changes, non-recurring legal and insurance expenses, lease termination fees, insurance proceeds related to property damage and similar adjustments on unconsolidated entities.

        Three Months EndedFinancial Ratios30-Sep-26 30-Jun-2631-Mar-2631-Dec-2530-Sep-25       Total GAAP interest expense$93,273 $113,943 $116,384$116,516 $113,584Capitalized interest expense 70,964 37,102 35,63734,783 32,923Change in accrued interest and other non-cash amounts 61,617 (104,924)30,268(52,014)41,265Cash Interest Expense(3)$225,854 $46,121 $182,289$99,285 $187,772       Preferred stock dividends 10,181 10,181 10,18110,181 10,181Total Fixed Charges(4)$174,418 $161,226 $162,202$161,479 $156,687              Coverage      Interest coverage ratio(5)5.1x 5.5x5.2x4.8x4.9xCash interest coverage ratio(6)3.8x 13.2x4.4x6.8x3.9xFixed charge coverage ratio(7)4.8x 5.2x4.9x4.5x4.6xCash fixed charge coverage ratio(8)3.7x 11.6x4.2x6.3x3.8x       Leverage      Debt to total enterprise value(9)(10) 22.4% 21.4% 21.7%25.1% 23.0%Debt-plus-preferred-stock-to-total-enterprise-value(10)(11) 23.2% 22.3% 22.7%26.1% 23.9%Pre-tax income to interest expense(12)3.1x 5.0x 2.5x1.8x1.6xNet Debt-to-Adjusted EBITDA(13)5.2x 4.7x 4.7x4.9x4.9x (3) Cash interest expense is interest expense less amortization of debt discount and deferred financing fees and includes interest that we capitalized. We consider cash interest expense to be a useful measure of interest as it excludes non-cash-based interest expense.
(4) Fixed charges consist of GAAP interest expense, capitalized interest, scheduled debt principal payments and preferred stock dividends.
(5) Adjusted EBITDA (including our pro rata share of unconsolidated entities EBITDA), divided by GAAP interest expense plus capitalized interest (including our pro rata share of unconsolidated entities interest expense).
(6) Adjusted EBITDA (including our pro rata share of unconsolidated entities EBITDA), divided by cash interest expense (including our pro rata share of unconsolidated entities interest expense).
(7) Adjusted EBITDA (including our pro rata share of unconsolidated entities EBITDA), divided by fixed charges (including our pro rata share of unconsolidated entities fixed charges).
(8) Adjusted EBITDA (including our pro rata share of unconsolidated entities EBITDA), divided by the sum of cash interest expense and preferred stock dividends (including our pro rata share of unconsolidated entities cash fixed charges).
(9) Total debt divided by market value of common equity plus debt plus preferred stock.
(10) Total enterprise value defined as market value of common equity plus debt plus preferred stock.
(11) Same as (9), except numerator includes preferred stock.
(12) Calculated as net income plus interest expense divided by GAAP interest expense.
(13) Calculated as total debt at balance sheet carrying value, plus finance lease obligations, plus Digital Realty’s pro rata share of unconsolidated entities debt, less cash and cash equivalents (including Digital Realty’s pro rata share of unconsolidated entities cash) divided by the product of Adjusted EBITDA (including Digital Realty’s pro rata share of unconsolidated entities EBITDA), multiplied by four.

Definitions

Funds From Operations (FFO):
We calculate funds from operations, or FFO, in accordance with the standards established by the National Association of Real Estate Investment Trusts (Nareit) in the Nareit Funds From Operations White Paper - 2018 Restatement. FFO is a non-GAAP financial measure and represents net income (loss) available to common stockholders (computed in accordance with GAAP), excluding gain (loss) from the disposition of real estate assets, provision for impairment, real estate related depreciation and amortization (excluding amortization of deferred financing costs), our share of unconsolidated JV real estate related depreciation & amortization, net income attributable to noncontrolling interests in operating partnership and reconciling items related to noncontrolling interests. Management uses FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization and gains and losses from property dispositions and after adjustments for unconsolidated partnerships and joint ventures, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our data centers that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our data centers, all of which have real economic effect and could materially impact our financial condition and results from operations, the utility of FFO as a measure of our performance is limited. Other REITs may not calculate FFO in accordance with the Nareit definition and, accordingly, our FFO may not be comparable to other REITs’ FFO. FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

Core Funds from Operations (Core FFO) and Core FFO (excluding net promote):
We present core funds from operations, or Core FFO, and Core FFO (excluding net promote) as supplemental operating measures because, in excluding certain items that do not reflect core revenue or expense streams, they provide a performance measure that, when compared year over year, capture trends in our core business operating performance. We calculate Core FFO by adding to or subtracting from FFO (i) other non-core revenue adjustments, (ii) transaction and integration expenses, (iii) gain (loss) on debt extinguishment and modifications, (iv) gain on / issuance costs associated with redeemed preferred stock, (v) severance, equity acceleration and legal expenses, (vi) gain/loss on FX and derivatives revaluation, and (vii) other non-core expense adjustments. We calculate Core FFO (excluding net promote) by adding to Core FFO the net impact of (i) promote income and (ii) promote expense (collectively “net promote”). Because certain of these adjustments have a real economic impact on our financial condition and results from operations, the utility of Core FFO and Core FFO (excluding net promote) as a measure of our performance is limited. Other REITs may calculate Core FFO and Core FFO (excluding net promote) differently than we do and accordingly, our Core FFO and Core FFO (excluding net promote) may not be comparable to other REITs’ Core FFO and Core FFO (excluding net promote). Core FFO and Core FFO (excluding net promote) should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

Adjusted Funds from Operations (AFFO):
We present adjusted funds from operations, or AFFO, as a supplemental operating measure because, when compared year over year, it assesses our ability to fund dividend and distribution requirements from our operating activities. We also believe that, as a widely recognized measure of the operations of REITs, AFFO will be used by investors as a basis to assess our ability to fund dividend payments in comparison to other REITs, including on a per share and unit basis. We calculate AFFO by adding to or subtracting from Core FFO (i) non-real estate depreciation, (ii) amortization of deferred financing costs, (iii) amortization of debt discount/premium, (iv) non-cash stock-based compensation expense, (v) straight-line rental revenue, (vi) straight-line rental expense, (vii) above- and below-market rent amortization, (viii) deferred tax expense / (benefit), (ix) leasing compensation and internal lease commissions, and (x) recurring capital expenditures. Other REITs may calculate AFFO differently than we do and, accordingly, our AFFO may not be comparable to other REITs’ AFFO. AFFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

EBITDA and Adjusted EBITDA:
We believe that earnings before interest expense, gain (loss) on debt extinguishment and modifications, income tax expense (benefit), and depreciation and amortization, or EBITDA, and Adjusted EBITDA (as defined below), are useful supplemental performance measures because they allow investors to view our performance without the impact of non-cash depreciation and amortization or the cost of debt and, with respect to Adjusted EBITDA, (i) unconsolidated entities real estate related depreciation & amortization, (ii) unconsolidated entities interest expense and tax expense, (iii) severance, equity acceleration and legal expenses, (iv) transaction and integration expenses, (v) gain (loss) on sale / deconsolidation, (vi) provision for impairment, (vii) other non-core adjustments, net, (viii) noncontrolling interests, (ix) preferred stock dividends, (x) gain on / issuance costs associated with redeemed preferred stock and (xi) net promote. In addition, we believe EBITDA and Adjusted EBITDA are frequently used by securities analysts, investors, and other interested parties in the evaluation of REITs. Because EBITDA and Adjusted EBITDA are calculated before recurring cash charges including interest expense and income taxes, exclude capitalized costs, such as leasing commissions, and are not adjusted for capital expenditures or other recurring cash requirements of our business, their utility as a measure of our performance is limited. Other REITs may calculate EBITDA and Adjusted EBITDA differently than we do and, accordingly, our EBITDA and Adjusted EBITDA may not be comparable to other REITs’ EBITDA and Adjusted EBITDA. Accordingly, EBITDA and Adjusted EBITDA should be considered only as supplements to net income computed in accordance with GAAP as a measure of our financial performance.

Net Operating Income (NOI) and Cash NOI:
Net operating income, or NOI, represents rental revenue, tenant reimbursement revenue and interconnection revenue less utilities expense, rental property operating expenses, property taxes and insurance expenses (as reflected in the statement of operations). NOI is commonly used by stockholders, company management and industry analysts as a measurement of operating performance of the company’s rental portfolio. Cash NOI is NOI less straight-line rents and above- and below-market rent amortization. Cash NOI is commonly used by stockholders, company management and industry analysts as a measure of property operating performance on a cash basis. Same-Capital Cash NOI represents data centers owned as of December 31, 2024 with less than 5% of total rentable square feet under development and excludes data centers that were undergoing, or were expected to undergo, development activities in 2025-2026, data centers classified as held for sale and contribution, and data centers sold or contributed to joint ventures for all periods presented (prior period numbers adjusted to reflect current same-capital pool). However, because NOI and cash NOI exclude depreciation and amortization and capture neither the changes in the value of our data centers that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our data centers, all of which have real economic effect and could materially impact our results from operations, the utility of NOI and cash NOI as measures of our performance is limited. Other REITs may calculate NOI and cash NOI differently than we do and, accordingly, our NOI and cash NOI may not be comparable to other REITs’ NOI and cash NOI. NOI and cash NOI should be considered only as supplements to net income computed in accordance with GAAP as measures of our performance.

Additional Definitions

GAAP refers to United States generally accepted accounting principles.

Net debt-to-Adjusted EBITDA ratio is calculated as total debt at balance sheet carrying value, plus finance lease obligations, plus Digital Realty’s pro rata share of unconsolidated entities debt, less cash and cash equivalents (including Digital Realty’s pro rata share of unconsolidated entities cash) divided by the product of Adjusted EBITDA (including Digital Realty’s pro rata share of unconsolidated entities EBITDA), multiplied by four.

Debt-plus-preferred-to-total enterprise value is total debt plus preferred stock divided by total debt plus the liquidation value of preferred stock and the market value of outstanding Digital Realty Trust, Inc. common stock and Digital Realty Trust, L.P. units, assuming the redemption of Digital Realty Trust, L.P. units for shares of Digital Realty Trust, Inc. common stock.

Fixed charge coverage ratio is Adjusted EBITDA divided by the sum of GAAP interest expense, capitalized interest and preferred stock dividends. For the quarter ended September 30, 2026, GAAP interest expense was $93 million, capitalized interest was $71 million and preferred stock dividends were $10 million.

        Reconciliation of Net Operating Income (NOI) Three Months Ended Nine Months Ended(in thousands) 30-Sep-2630-Jun-2630-Sep-25 30-Sep-2630-Sep-25        Operating income before gain (loss) on disposition of properties, net $293,728 $459,257 $138,420  $1,019,918 $545,868         Fee income (75,298) (248,927) (36,398) (359,124)(91,468)Other income (11) (480) (4,746) (538)(6,242)Depreciation and amortization 539,471  507,106  497,002  1,546,088 1,401,178 General and administrative 170,644  153,316  139,911  475,883 394,778 Severance, equity acceleration and legal expenses 2,643  4,384  1,794  9,862 6,484 Transaction and integration expenses 48,961  38,703  86,559  103,349 149,007 Provision for impairment —  —  —  — — Other expenses 179  13,508  3,297  13,710 3,604         Net Operating Income $980,317 $926,868 $825,839  $2,809,148 $2,403,209                 Cash Net Operating Income (Cash NOI)               Net Operating Income $980,317 $926,868 $825,839  $2,809,148 $2,403,209         Straight-line rental revenue (43,501) (26,955) (33,196) (92,268)(66,904)Straight-line rental expense (710) (617) (297) (2,751)(742)Above- and below-market rent amortization (2,142) (962) (864) (4,111)(2,322)        Cash Net Operating Income $933,964 $898,334 $791,482  $2,710,018 $2,333,240                         Constant Currency Core FFO (Excluding Net Promote) Reconciliation Three Months Ended Nine Months Ended(in thousands, except per share data) 30-Sep-26 30-Sep-25 30-Sep-2630-Sep-25        Core FFO (Excluding Net Promote)(1) $795,263  $656,001  $2,279,219 $1,907,639 Core FFO impact of holding '25 Exchange Rates Constant(2) 1,693   —  (32,442)—         Constant Currency Core FFO (Excluding Net Promote) $796,956  $656,001  $2,246,777 $1,907,639 Weighted-average shares and units outstanding - diluted 378,770   347,700  363,687 344,873 Constant Currency Core FFO Per Share (Excluding Net Promote) $2.10  $1.89  $6.18 $5.53  (1) As reconciled to net income above.
(2) Adjustment calculated by holding currency translation rates for 2026 constant with average currency translation rates that were applicable to the same periods in 2025.     

This document contains forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Such forward-looking statements include statements relating to: our economic outlook, our expected investment and expansion activity, anticipated continued demand for our products and service, our liquidity, our joint ventures, supply and demand for data center and colocation capacity, our acquisition and disposition activity, pricing and net effective leasing economics, market dynamics and data center fundamentals, our strategic priorities, our product offerings, available inventory, rent from leases that have been signed but have not yet commenced and other contracted rent to be received in future periods, rental rates on future leases, lag between signing and commencement, cap rates and yields, investment activity, the company’s FFO, Core FFO, constant currency Core FFO, Core FFO (excluding net promote), Constant Currency Core FFO (excluding net promote), adjusted FFO, adjusted EBITDA, net income,  2026 outlook and underlying assumptions, information related to trends, our strategy and plans, leasing expectations, weighted average lease terms, the exercise of lease extensions, lease expirations, debt maturities, annualized rent at expiration of leases, the effect new leases and increases in rental rates will have on our rental revenue, our credit ratings, construction and development activity and plans, projected construction costs, estimated yields on investment, expected occupancy, expected square footage and IT load capacity upon completion of development projects, backlog NOI, NAV components, and other forward-looking financial data. Such statements are based on management’s beliefs and assumptions made based on information currently available to management. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance and may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. Some of the risks and uncertainties that may cause our actual results, performance, or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following:

reduced demand for data centers or decreases in information technology spending;decreased rental rates, increased operating costs or increased vacancy rates;increased competition or available supply of data center capacity;the suitability of our data centers and data center infrastructure, delays or disruptions in connectivity or availability of power, or failures or breaches of our physical and information security infrastructure or services;breaches of our obligations or restrictions under our contracts with our customers;our inability to successfully develop and lease new properties and development capacity, and delays or unexpected costs in development of properties;the impact of current global and local economic, credit and market conditions;increased tariffs, global supply chain or procurement disruptions, or increased supply chain costs;the impact from periods of heightened inflation on our costs, such as operating and general and administrative expenses, interest expense and real estate acquisition and construction costs;the impact on our customers’ and our suppliers’ operations during an epidemic, pandemic, or other global events;our dependence upon significant customers, bankruptcy or insolvency of a major customer or a significant number of smaller customers, or defaults on or non-renewal of leases by customers;changes in political conditions, geopolitical turmoil, political instability, civil disturbances, restrictive governmental actions or nationalization in the countries in which we operate;our inability to retain data center capacity that we lease or sublease from third parties;information security, cyberattacks, security breaches and data privacy breaches;difficulties managing an international business and acquiring or operating properties in foreign jurisdictions and unfamiliar metropolitan areas;our failure to realize the intended benefits from, or disruptions to our plans and operations or unknown or contingent liabilities related to, our recent and future acquisitions;our failure to successfully integrate and operate acquired or developed properties or businesses;difficulties in identifying properties to acquire and completing acquisitions;risks related to joint venture investments, including as a result of our lack of control of such investments;risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements;our failure to obtain necessary debt and equity financing, and our dependence on external sources of capital;financial market fluctuations and changes in foreign currency exchange rates;adverse economic or real estate developments in our industry or the industry sectors that we sell to, including risks relating to decreasing real estate valuations and impairment charges and goodwill and other intangible asset impairment charges;our inability to manage our growth effectively;losses in excess of our insurance coverage;our inability to attract and retain talent;environmental liabilities, risks related to natural disasters and our inability to achieve our sustainability goals;the expected operating performance of anticipated near-term acquisitions and descriptions relating to these expectations;our inability to comply with rules and regulations applicable to our company;Digital Realty Trust, Inc.’s failure to maintain its status as a REIT for U.S. federal income tax purposes;Digital Realty Trust, L.P.’s failure to qualify as a partnership for U.S. federal income tax purposes;restrictions on our ability to engage in certain business activities;changes in local, state, federal and international laws and regulations, including related to taxation, real estate and zoning laws, and increases in real property tax rates; andthe impact of any financial, accounting, legal or regulatory issues or litigation that may affect us. The risks included here are not exhaustive, and additional factors could adversely affect our business and financial performance. Several additional material risks are discussed in our annual report on Form 10‑K for the year ended December 31, 2025, and other filings with the U.S. Securities and Exchange Commission. Those risks continue to be relevant to our performance and financial condition. Moreover, we operate in a competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We expressly disclaim any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise. Digital Realty, Digital Realty Trust, the Digital Realty logo, Interxion, Turn-Key Flex, Powered Base Building, ServiceFabric, AnyScale Colo, Pervasive Data Center Architecture, PlatformDIGITAL, PDx, Data Gravity Index and Data Gravity Index DGx are registered trademarks and service marks of Digital Realty Trust, Inc. in the United States and/or other countries. All other names, trademarks and service marks are the property of their respective owners.

PHOENIX--(BUSINESS WIRE)--First Solar, Inc. (Nasdaq: FSLR) (the “Company”), America's leading PV solar technology and manufacturing company, today announced financial results for the third quarter ended September 30, 2026 and updated its 2026 guidance. Net sales were $1.23 billion for the third quarter of 2026, a 23% decrease compared to the third quarter of 2025, driven primarily by a decrease in the volume of modules sold to third parties. The Company reported third quarter net income of $571.

Gilead Sciences posts higher-than-expected sales as blockbuster HIV drug Biktarvy continues to drive its top line.

KHC expects to post weaker Q3 sales and earnings amid soft volumes, cautious consumer spending and rising costs, while strategic investments may offer support.

, /PRNewswire/ -- DaVita Inc. (NYSE: DVA) announced financial and operating results for the quarter ended September 30, 2026.

Financial and operating highlights for the quarter ended September 30, 2026:

Consolidated revenues were $3.578 billion.Operating income was $499 million and adjusted operating income was $561 million.Diluted earnings per share was $3.40 and adjusted diluted earnings per share was $3.82.Operating cash flow was $519 million and free cash flow was $276 million.Repurchased 0.6 million shares of the Company's common stock at an average price paid of $186.21 per share.
Three months ended

Nine months ended September 30,

September 30, 2026

June 30, 2026

2026

2025

Net income attributable to DaVita Inc.:

(dollars in millions, except per share data)

Net income

$             223

$             265

$              686

$             513

Diluted per share

$            3.40

$            4.02

$           10.27

$            6.62

Adjusted net income(1)

$             250

$             265

$              713

$             576

Adjusted diluted per share(1)

$            3.82

$            4.02

$           10.67

$            7.44

 _______________________

(1)

For definitions of non-GAAP financial measures, see the note titled "Note on Non-GAAP Financial Measures" and related reconciliations beginning on page 14.

Three months ended

Nine months ended September 30,

September 30, 2026

June 30, 2026

2026

2025

Amount

Margin

Amount

Margin

Amount

Margin

Amount

Margin

Operating income

(dollars in millions)

Operating income

$   499

14.0 %

$   579

16.3 %

$ 1,560

14.8 %

$ 1,483

14.8 %

Adjusted operating income(1)

$   561

15.7 %

$   579

16.3 %

$ 1,622

15.4 %

$ 1,508

15.0 %

 _______________________

(1)

For definitions of non-GAAP financial measures, see the note titled "Note on Non-GAAP Financial Measures" and related reconciliations beginning on page 14.

U.S. dialysis metrics:

Volume: Total U.S. dialysis treatments for the third quarter of 2026 were 7,329,644, or an average of 92,780 treatments per day, representing a per day increase of 0.1% compared to the second quarter of 2026. Normalized non-acquired treatment growth in the third quarter of 2026 compared to the third quarter of 2025 was 0.4%.

Three months ended

Quarter

change

Nine months ended

Year to date
change

September 30,
2026

June 30,
2026

September 30,
2026

September 30,
2025

(dollars in millions, except per treatment data)

Revenue per treatment

$    415.25

$      415.87

$      (0.62)

$     416.22

$    405.15

$        11.07

Patient care costs per treatment

$    280.22

$      277.40

$       2.82

$     279.24

$    271.23

$          8.01

General and administrative

$         316

$           331

$         (15)

$          967

$         917

$             50

Primary drivers of the changes in the table above were as follows:

Revenue: The quarter change was primarily driven by normal fluctuations, partially offset by an increase in average reimbursement rates and improvements in payor mix. The year to date change was driven by typical annual rate increases and other normal fluctuations, partially offset by unfavorable changes in payor mix.

Patient care costs: The quarter change was primarily due to increased medical supplies expenses. The year to date change was primarily driven by increased compensation expenses, medical supplies expense, insurance costs and health benefits expenses.

General and administrative: The quarter change was primarily due to decreased professional fees. The year to date change was primarily driven by increases in IT-related costs and compensation expenses, partially offset by costs related to the cybersecurity incident experienced by the Company in 2025.

Certain items impacting the quarter:

Goodwill and other asset impairment charges. During the quarter ended September 30, 2026, we recognized non-cash goodwill and other asset impairment charges related to our business in China. The effect was a $62 million impairment charge within operating income, offset by a $1 million tax benefit and $34 million noncontrolling interest credit, resulting in a $27 million net income impact attributable to DaVita Inc.

Share repurchases. During the three months ended September 30, 2026, we repurchased 0.6 million shares for $111 million, at an average price paid of $186.21 per share.

Subsequent to September 30, 2026 through October 27, 2026, the Company has repurchased 0.5 million shares of our common stock for $87 million at an average price paid of $180.57 per share.

Financial and operating metrics:

Three months ended

September 30,

Twelve months ended

September 30,

2026

2025

2026

2025

Cash flow:

(dollars in millions)

Operating cash flow

$         519

$         842

$       1,870

$       1,893

Free cash flow(1)

$         276

$         604

$          980

$          996

 _______________________

(1)

For definitions of non-GAAP financial measures, see the note titled "Note on Non-GAAP Financial Measures" and related reconciliations beginning on page 14.

Three months ended
September 30, 2026

Nine months ended
September 30, 2026

Effective income tax rate on:

Income

24.9 %

21.8 %

Income attributable to DaVita Inc.(1)

28.7 %

26.5 %

Adjusted income attributable to DaVita Inc.(1)

26.6 %

25.8 %

 _______________________

(1)

For definitions of non-GAAP financial measures, see the note titled "Note on Non-GAAP Financial Measures" and related reconciliations beginning on page 14.

Center activity: As of September 30, 2026, we provided dialysis services to a total of approximately 298,100 patients at 3,269 outpatient dialysis centers, of which 2,671 centers were located in the United States and 598 centers were located in 14 countries outside of the United States.

Integrated kidney care (IKC): As of September 30, 2026, we had approximately 80,800 patients in risk-based integrated care arrangements representing approximately $6.4 billion in annualized medical spend. We also had an additional 3,100 patients in other integrated care arrangements; we do not include the medical spend for these patients in this annualized medical spend estimate. For an additional description of these metrics, see footnote 5 in the "Supplemental Financial Data" table below.

Outlook:

The following forward-looking measures and the underlying assumptions involve significant known and unknown risks and uncertainties, including those described below, and actual results may vary materially from these forward-looking measures. We do not provide guidance for operating income or diluted net income per share attributable to DaVita Inc. or operating cash flow on a basis consistent with United States generally accepted accounting principles (GAAP) nor a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis because we are unable to predict certain items contained in the GAAP measures without unreasonable efforts. These current non-GAAP financial measures do not include certain items, including goodwill impairment charges and foreign currency fluctuations, which may be significant. The guidance for our effective income tax rate on adjusted income attributable to DaVita Inc. also excludes the amount of third-party owners' income and related taxes attributable to non-tax paying entities.

Current 2026 guidance

Prior 2026 guidance

Low

High

Low

High

(dollars in millions, except per share data)

Adjusted operating income

$2,175

$2,250

$2,150

$2,250

Adjusted diluted net income per share attributable to DaVita Inc.

$14.30

$15.20

$14.10

$15.20

Free cash flow

$1,000

$1,250

$1,000

$1,250

The following table outlines normalized treatment days by quarter for 2025 and 2026. Normalized treatment days are adjusted for the mix of days of the week for each quarter and serve as a means to more readily compare calendar effects on each quarter's treatment volume.

Normalized Treatment Days

2026

2025

Q1

76.5

76.9

Q2

78.0

78.0

Q3

79.2

78.8

Q4

78.8

79.5

Total

312.4

313.2

               Certain columns, rows or percentages may not sum or recalculate due to the presentation of rounded numbers.

We will be holding a conference call to discuss our results for the third quarter ended September 30, 2026, on October 29, 2026, at 5:00 p.m. Eastern Time. To join the conference call, please dial (877) 918-6630 from the U.S. or (517) 308-9042 from outside the U.S., and provide the operator the password "Earnings." This call is being webcast and can be accessed at the DaVita Investor Relations website investors.davita.com. A replay of the conference call will also be available at investors.davita.com.

Forward looking statements

DaVita Inc. and its representatives may from time to time make written and oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA), including statements in this release, filings with the Securities and Exchange Commission (SEC), reports to stockholders and in meetings with investors and analysts. All statements in this release, during the related presentation or other meetings, other than statements of historical fact, are forward-looking statements and as such are intended to be covered by the safe harbor for "forward-looking statements" provided by the PSLRA. These forward-looking statements could include, among other things, statements about our balance sheet and liquidity, our expenses, revenues, billings and collections, patient census, the impact of the cybersecurity incident experienced by the Company in 2025 (cyber incident), the impact of federal government policy changes or shutdowns on our business, including with respect to federal funding and reimbursement rates of Medicare, Medicare Advantage (MA), Medicaid and other government programs, availability or cost of supplies, including without limitation the impact of evolving trade policies and tariffs and any reduction in clinical and other supplies due to any disruptions experienced by third party vendors, including with respect to our ability to provide home dialysis services, treatment volumes, mix expectation, such as the percentage or number of patients under commercial insurance, including potential impacts to such mix as a result of U.S. administration policies, current macroeconomic, marketplace and labor market conditions, and overall impact on our patients and teammates, as well as other statements regarding our outlook, future operations, financial condition and prospects, capital allocation plans, expenses, cost saving initiatives, other strategic initiatives, use of contract labor, government and commercial payment rates, expectations related to value-based care (VBC), integrated kidney care (IKC), MA plan enrollment and our international operations, expectations regarding increased competition and marketplace changes, including those related to new or potential entrants in the dialysis and pre-dialysis marketplace and the potential impact of innovative technologies, drugs, or other treatments on the dialysis industry, and expectations regarding our share repurchase program. All statements in this release, other than statements of historical fact, are forward-looking statements. Without limiting the foregoing, statements including the words "expect," "intend," "will," "could," "plan," "anticipate," "believe," "forecast," "guidance," "outlook," "goals," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on DaVita's current expectations and are based solely on information available as of the date of this release. DaVita undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of changed circumstances, new information, future events or otherwise, except as may be required by law. Actual future events and results could differ materially from any forward-looking statements due to numerous factors that involve substantial known and unknown risks and uncertainties. These risks and uncertainties include, among other things:

external conditions, including those related to general economic, political and global health conditions, including without limitation, the impact of global events and political or governmental volatility, including in the Middle East and Ukraine; the impact of the domestic political environment and related developments on the current healthcare marketplace, our patients and on our business; the impact of infectious diseases or other adverse conditions on our financial condition, the chronic kidney disease population and our patient population; supply chain challenges and disruptions, including without limitation, with respect to certain key services, critical clinical supplies and equipment we obtain from third parties, and including any impacts on our supply chain and cost of supplies as a result of global events, natural disasters or evolving trade policies, including tariffs; the impact on our patients and industry of continued increased competition from dialysis providers and others, including new or potential entrants in the dialysis and pre-dialysis marketplace; the impact of new or innovative technologies, drugs, or other treatments, including our ability to successfully implement new technologies, treatments or therapies in our business such as those related to middle molecule toxin clearance; elevated teammate turnover or labor costs; and our ability to respond to challenging U.S. and global economic and marketplace conditions, including, among other things, our ability to successfully identify cost saving opportunities and execute on related strategic initiatives;the concentration of profits generated by higher-paying commercial payor plans for which there is continued downward pressure on average realized payment rates; our ability to negotiate and maintain contracts with these payors on competitive terms or at all; a reduction in the number or percentage of our patients under commercial plans, including, without limitation, as a result of healthcare, immigration or other policies implemented by the U.S. administration, continuing legislative, regulatory or other efforts to restrict or prohibit the use and/or availability of charitable premium assistance, or as a result of payors implementing restrictive plan designs or resulting from negotiations with large commercial payors that we have in the past, and currently are, conducting on a concurrent basis; risks arising from laws, regulations or requirements applicable to us or changes thereto, including, without limitation, the One Big Beautiful Bill Act and those related to trade policy, healthcare, charitable premium assistance, privacy, antitrust matters, and acquisition, merger, joint venture or similar transactions and/or labor matters, and potential impacts of changes in interpretation or enforcement thereof or related litigation impacting, among other things, coverage or reimbursement rates for our services or the number of patients enrolled in or that select higher-paying commercial plans, and the risk that we make incorrect assumptions about how our patients will respond to any such developments; our ability to successfully implement our strategies with respect to IKC and VBC initiatives that may be impacted by, among other things, changes to the Comprehensive Kidney Care Contracting model and home based dialysis in the desired time frame and in a complex, dynamic and highly regulated environment; a reduction in government payment rates under the Medicare End Stage Renal Disease program, state Medicaid or other government-based programs and the impact of the MA benchmark structure and adjustment methodologies;our reliance on significant suppliers, service providers and other third party vendors to provide key support to our business operations and enable our provision of services to patients, including, among others, suppliers of certain pharmaceuticals, administrative or other services or critical clinical products; and risks resulting from a closure, reduction, disruption or transition in the services or products provided to us by such suppliers, service providers and third party vendors, which may, among other things, increase our costs or expenses;our ability to successfully and cost-effectively maintain, operate or upgrade our information systems or those of third-party service providers upon which we rely and our ability to successfully and cost-effectively adopt or adapt to new technologies, treatments or therapies, including technologies that utilize artificial intelligence; legal and compliance risks, such as compliance with complex, and at times, evolving government regulations and requirements, and with additional laws that may apply to our operations as we expand geographically or enter into new lines of business;noncompliance by us or our business associates with any privacy or security laws or any security breach by us or a third party, such as the cyber incident, including, among other things, any such non-compliance or breach involving the misappropriation, loss or other unauthorized use or disclosure of confidential information;our ability to attract, retain and motivate teammates, including key leadership personnel, our ability to manage potential disruptions to our business and operations, including potential work stoppages, and our ability to manage operating cost increases or productivity decreases that may be related to political unrest, legislative or other changes, union organizing activities, or volatility and uncertainty in the current challenging and highly competitive labor market that has experienced an ongoing nationwide shortage of skilled clinical personnel, among other things;changes in practice patterns, pricing, or reimbursement and payment policies or processes related to pharmaceuticals, medical equipment or supplies, including with respect to oral phosphate binders, among other things; our ability to develop and maintain relationships with physicians and hospitals, changing affiliation models for physicians, and the emergence of new models of care or other initiatives that, among other things, may erode our patient base and impact reimbursement rates;our ability to complete and successfully integrate and operate acquisitions, mergers, dispositions, joint ventures or other strategic transactions on terms favorable to us or at all; and our ability to continue to successfully expand our operations and services in markets outside the United States, or to businesses or products outside of dialysis services;the variability of our cash flows, including, without limitation, any extended billing or collections cycles that may be due to, among other things, defects or operational issues in our billing systems such as those experienced during the cyber incident, or defects or operational issues in the billing systems or services of third parties on which we rely; the risk that we may not be able to generate or access sufficient cash in the future to service our indebtedness or to fund our other liquidity needs;the effects on us or others of natural or other disasters, public health crises or severe adverse weather events such as hurricanes, earthquakes, fires or flooding;factors that may impact our ability to repurchase stock under our share repurchase program and the timing of any such stock repurchases, as well as any use by us of a considerable amount of available funds to repurchase stock; our goals and disclosures related to sustainability matters, including, among other things, evolving regulatory requirements affecting environmental, social and governance standards, measurements and reporting requirements; andthe other risk factors, trends and uncertainties set forth in our Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Reports on Form 10-Q for the quarters ended March 31 and June 30, 2026, and the risks and uncertainties discussed in any subsequent reports that we file or furnish with the SEC from time to time.The financial information presented in this release is unaudited and is subject to change as a result of subsequent events or adjustments, if any, arising prior to the filing of the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.

DAVITA INC.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

(dollars and shares in thousands, except per share data)

Three months ended September 30,

Nine months ended September 30,

2026

2025

2026

2025

Dialysis patient service revenues

$  3,408,266

$  3,298,090

$ 10,047,440

$  9,607,954

Other revenues

169,860

122,137

500,318

415,328

Total revenues

3,578,126

3,420,227

10,547,758

10,023,282

Operating expenses:

Patient care costs

2,451,047

2,332,759

7,185,305

6,833,959

General and administrative

408,697

414,373

1,254,069

1,201,268

Depreciation and amortization

165,188

177,490

510,825

528,645

Equity investment income, net

(8,237)

(10,162)

(24,765)

(23,135)

Goodwill and other asset impairment charges

62,176

—

62,176

—

Total operating expenses

3,078,871

2,914,460

8,987,610

8,540,737

Operating income

499,255

505,767

1,560,148

1,482,545

Debt expense

(150,016)

(150,557)

(445,403)

(431,674)

Debt extinguishment and modification costs

—

(5,150)

(2,035)

(5,150)

Other income (loss), net

9,468

(41,257)

22,241

(81,657)

Income before income taxes

358,707

308,803

1,134,951

964,064

Income tax expense

89,318

68,554

247,304

216,379

Net income

269,389

240,249

887,647

747,685

Less: Net income attributable to noncontrolling interests

(46,458)

(89,917)

(201,789)

(235,099)

Net income attributable to DaVita Inc.

$    222,931

$    150,332

$    685,858

$    512,586

Earnings per share attributable to DaVita Inc.:

Basic net income

$          3.49

$          2.09

$        10.50

$          6.77

Diluted net income

$          3.40

$          2.04

$        10.27

$          6.62

Weighted average shares for earnings per share:

Basic shares

63,835

72,075

65,322

75,768

Diluted shares

65,504

73,769

66,811

77,442

DAVITA INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

 (dollars in thousands)

Three months ended September 30,

Nine months ended September 30,

2026

2025

2026

2025

Net income

$    269,389

$    240,249

$    887,647

$    747,685

Other comprehensive income (loss), net of tax:

Unrealized gains (losses) on interest rate cap agreements:

Unrealized gains (losses)

26,777

(4,418)

34,729

(19,358)

Reclassifications of net realized losses into net income

2,877

1,427

8,632

4,468

Unrealized (losses) gains on foreign currency translation

(564)

24,669

49,961

209,526

Other comprehensive income

29,090

21,678

93,322

194,636

Total comprehensive income

298,479

261,927

980,969

942,321

Less: Comprehensive income attributable to noncontrolling interests

(46,458)

(89,917)

(201,789)

(235,099)

Comprehensive income attributable to DaVita Inc.

$    252,021

$    172,010

$    779,180

$    707,222

DAVITA INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(dollars and shares in thousands, except per share data)

September 30, 2026

December 31, 2025

ASSETS

Cash and cash equivalents

$        495,629

$        676,438

Restricted cash and equivalents

83,631

81,309

Short-term investments

70,673

24,303

Accounts receivable

2,509,014

2,414,690

Inventories

161,464

160,627

Contract assets and other receivables

565,459

494,414

Prepaid and other current assets

141,147

156,285

Income tax receivable

47,807

49,937

Total current assets

4,074,824

4,058,003

Property and equipment, net of accumulated depreciation of $6,985,414 and $6,602,134, respectively

2,731,171

2,812,966

Operating lease right-of-use assets

2,434,212

2,397,179

Intangible assets, net of accumulated amortization of $39,378 and $37,751, respectively

221,070

222,125

Equity method and other investments

404,305

157,249

Long-term investments

38,382

40,966

Other long-term assets

364,506

246,520

Goodwill

7,548,042

7,545,095

$     17,816,512

$     17,480,103

LIABILITIES AND EQUITY

Accounts payable

$          662,199

$          696,148

Other liabilities

848,178

893,024

Accrued compensation and benefits

747,911

793,478

Current portion of operating lease liabilities

438,132

425,484

Current portion of long-term debt

112,491

109,201

Income tax payable

23,143

24,359

Due to related party

54,714

199,940

Total current liabilities

2,886,768

3,141,634

Long-term operating lease liabilities

2,185,179

2,175,658

Long-term debt

10,656,624

10,163,988

Other long-term liabilities

100,431

83,516

Deferred income taxes

861,693

756,869

Total liabilities

16,690,695

16,321,665

Commitments and contingencies

Noncontrolling interests subject to put provisions

1,484,283

1,532,166

Equity:

Preferred stock ($0.001 par value, 5,000 shares authorized; none issued)

—

—

Common stock ($0.001 par value, 450,000 shares authorized; 69,237 shares issued

 and 63,400 shares outstanding at September 30, 2026, and 68,549 shares issued and

 outstanding at December 31, 2025)

69

69

Additional paid-in capital

53,979

—

Accumulated earnings (deficit)

301,565

(328,428)

Treasury stock (5,837 and zero shares, respectively)

(917,239)

(199,940)

Accumulated other comprehensive loss

(29,461)

(122,783)

Total DaVita Inc. shareholders' equity deficit

(591,087)

(651,082)

Noncontrolling interests not subject to put provisions

232,621

277,354

Total equity deficit

(358,466)

(373,728)

$     17,816,512

$     17,480,103

DAVITA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(dollars in thousands)

Nine months ended September 30,

2026

2025

Cash flows from operating activities:

Net income

$       887,647

$       747,685

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

510,825

528,645

Goodwill and other asset impairment charges

62,176

—

Loss on extinguishment of debt

—

4,253

Stock-based compensation expense

83,378

101,559

Deferred income taxes

91,207

68,989

Equity investment loss, net

887

91,532

Other non-cash losses, net

14,668

11,522

Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:

Accounts receivable

(67,585)

(144,688)

Inventories

1,103

913

Other current assets

(50,210)

(153,428)

Other long-term assets

(47,733)

(21)

Accounts payable

(47,803)

97,879

Accrued compensation and benefits

(64,671)

19,279

Other current liabilities

(50,713)

16,462

Income taxes

453

(30,635)

Other long-term liabilities

6,101

(14,172)

Net cash provided by operating activities

1,329,730

1,345,774

Cash flows from investing activities:

Additions of property and equipment

(431,323)

(430,434)

Acquisitions

(41,693)

(118,337)

Proceeds from asset and business sales

16,297

32,337

Purchase of debt investments held-to-maturity

(66,788)

(15,842)

Purchase of other debt and equity investments

(29,832)

(3,352)

Proceeds from debt investments held-to-maturity

17,020

38,051

Proceeds from sale of other debt and equity investments

4,382

6,706

Purchase of equity method investments

(221,839)

(2,466)

Distributions from equity method investments

329

1,514

Net cash used in investing activities

(753,447)

(491,823)

Cash flows from financing activities:

Borrowings

3,511,331

4,672,170

Payments on long-term debt

(3,021,008)

(3,880,721)

Deferred and debt related financing costs

(10,602)

(26,416)

Purchase of treasury stock from related party

(419,318)

(430,286)

Other purchases of treasury stock

(450,862)

(1,033,887)

Distributions to noncontrolling interests

(243,786)

(232,721)

Net proceeds from issuance of common stock under employee stock plans

14,509

17,583

Payment of tax withholdings on net share settlements of equity awards

(68,968)

(33,764)

Contributions from noncontrolling interests

4,636

3,999

Proceeds from sales of additional noncontrolling interests

—

169

Purchases of noncontrolling interests

(70,593)

(16,385)

Net cash used in financing activities

(754,661)

(960,259)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(109)

21,897

Net decrease in cash, cash equivalents and restricted cash

(178,487)

(84,411)

Cash, cash equivalents and restricted cash at beginning of the year

757,747

879,825

Cash, cash equivalents and restricted cash at end of the period

$       579,260

$       795,414

DAVITA INC.

SUPPLEMENTAL FINANCIAL DATA

(unaudited)
(dollars in millions and shares in thousands, except per treatment and patient data)

Three months ended

Nine months ended
September 30, 2026

September 30,
2026

June 30,
2026

1. Consolidated business metrics:

Operating margin

14.0 %

16.3 %

14.8 %

Adjusted operating margin excluding certain items(1)

15.7 %

16.3 %

15.4 %

General and administrative expenses as a percent of

 consolidated revenues(2)

11.4 %

11.9 %

11.9 %

Effective income tax rate on income

24.9 %

21.1 %

21.8 %

Effective income tax rate on income attributable to DaVita Inc.(1)

28.7 %

25.6 %

26.5 %

Effective income tax rate on adjusted income attributable to DaVita Inc.(1)

26.6 %

25.6 %

25.8 %

2. Summary of financial results:

Revenues:

U.S. dialysis patient services and other

$   3,050

$   3,012

$      9,004

Other—Ancillary services

Integrated kidney care

144

162

422

Other U.S. ancillary

10

9

29

International dialysis patient service and other

398

386

1,156

552

557

1,606

Eliminations

(24)

(14)

(62)

Total consolidated revenues

$   3,578

$   3,554

$    10,548

Operating income (loss):

U.S. dialysis

$      544

$      538

$      1,588

Other—Ancillary services

Integrated kidney care

4

40

24

Other U.S. ancillary

(6)

(8)

(20)

International

(16)

25

40

(19)

57

44

Corporate administrative support expenses

(26)

(16)

(72)

Total consolidated operating income

$      499

$      579

$      1,560

DAVITA INC.

SUPPLEMENTAL FINANCIAL DATA - continued

(unaudited)

(dollars in millions and shares in thousands, except per treatment and patient data)

Three months ended

Nine months ended
September 30, 2026

September 30,
2026

June 30,
2026

3. Summary of reportable segment financial results and metrics:

U.S. dialysis

Financial results

Revenue:

Dialysis patient service revenues

$   3,044

$   3,005

$      8,984

Other revenues

7

7

20

Total operating revenues

3,050

3,012

9,004

Operating expenses:

Patient care costs

2,054

2,005

6,028

General and administrative

316

331

967

Depreciation and amortization

144

146

446

Equity investment income

(8)

(8)

(25)

Total operating expenses

2,506

2,474

7,416

Segment operating income

$     544

$     538

$      1,588

Metrics

Volume:

Treatments

7,329,644

7,226,600

21,585,769

Number of treatment days

79.0

78.0

233.7

Average treatments per day

92,780

92,649

92,365

Per day year-over-year change

1.2 %

0.6 %

0.5 %

Number of normalized treatment days(3)

79.2

78.0

233.7

Average treatments per normalized day

92,546

92,649

92,365

Per normalized day year-over-year change

0.7 %

0.6 %

0.5 %

Normalized year-over-year non-acquired treatment growth(4)

0.4 %

0.3 %

Operating net revenues:

Average patient service revenue per treatment

$  415.25

$  415.87

$    416.22

Expenses:

Patient care costs per treatment

$  280.22

$  277.40

$    279.24

General and administrative expenses per treatment

$    43.14

$    45.79

$      44.79

Depreciation and amortization expense per treatment

$    19.70

$    20.26

$      20.66

Accounts receivable:

Receivables

$    1,684

$    1,719

DSO

51

52

4. IKC metrics:

Patients per integrated care arrangement type:

Risk-based(5)

80,800

64,900

Other(5)

3,100

5,700

Annualized aggregate risk based spend(5)

$   6,400

$   5,800

DAVITA INC.

SUPPLEMENTAL FINANCIAL DATA - continued

(unaudited)

(dollars in millions and shares in thousands, except per treatment and patient data)

Three months ended

Nine months ended
September 30, 2026

September 30,
2026

June 30,
2026

5. Cash flow:

Operating cash flow

$      519

$       490

$        1,330

Operating cash flow, last twelve months

$   1,870

$    2,193

Free cash flow(1)

$      276

$       256

$           672

Free cash flow, last twelve months(1)

$      980

$    1,308

Capital expenditures:

Maintenance

$      112

$       123

$           309

Development

$        47

$         47

$           122

Acquisition expenditures

$          3

$           5

$             42

Proceeds from sale of self-developed properties

$        10

$         —

$             13

6. Debt and capital structure:

Total debt(6)

$  10,832

$  10,848

Net debt, net of cash and cash equivalents(6)

$  10,337

$  10,179

Leverage ratio(7)

3.38x

3.37x

Weighted average effective interest rate:

At end of the quarter

5.54 %

5.43 %

On the senior secured credit facilities at end of the quarter

6.02 %

5.76 %

Amount spent on share repurchases

$        111

$       348

$           863

Number of shares repurchased

594

2,238

5,837

Certain columns, rows or percentages may not sum or recalculate due to the presentation of rounded numbers.

_______________________

(1)

These are non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures to their most comparable measure calculated and presented in accordance with GAAP, and for a definition of adjusted amounts, see attached reconciliation schedules. Adjusted operating income margin is adjusted operating income divided by consolidated revenues.

(2)

General and administrative expenses include certain corporate support, long-term incentive compensation and advocacy costs.

(3)

Normalized treatment days reflect treatment days adjusted to normalize for the mix of days of the week in a given quarter.

(4)

Normalized non-acquired treatment growth reflects year-over-year growth in treatment volume, adjusted to exclude acquisitions and other similar transactions, and further adjusted to normalize for the number and mix of treatment days in a given quarter versus the prior year quarter.

(5)

Integrated care metrics: The aggregate amount of medical spend associated with risk-based integrated care arrangements that we disclose includes both medical costs included in our reported expenses for certain risk-based arrangements (such as our SNPs), as well as the aggregate estimated benchmark amount above or below which we will incur profit or loss from value-based care (VBC) arrangements under which third-party medical costs are not included in our reported results. A number of our VBC contracts are subject to complex or novel patient attribution mechanics and benchmark adjustments, some of which are based on information not reported to us until periods after we report our quarterly results. As a result, our estimates of our patients under, and the dollar amount of, our value-based contracts remain subject to estimation uncertainty.

(6)

The debt amounts presented as of September 30, 2026 and June 30, 2026 exclude approximately $63.1 and $66.5, respectively, of debt discount, premium and other deferred financing costs related to our senior secured credit facilities and senior notes in effect or outstanding at that time.

(7)

This is a non-GAAP measure. See "Calculation of Leverage Ratio" in non-GAAP reconciliations.

DAVITA INC.
RECONCILIATIONS FOR NON-GAAP MEASURES
(unaudited)
(dollars in millions)

Calculation of the Leverage Ratio

Under our amended senior secured credit facilities (the Amended Credit Agreement) dated June 8, 2026, the leverage ratio is defined as (a) all funded debt, minus unrestricted cash and cash equivalents (including short-term investments) divided by (b) "Consolidated EBITDA." The leverage ratio determines the interest rate margin payable by the Company for its Term Loan A-2 and revolving line of credit under the Amended Credit Agreement by establishing the margin over the base interest rate (SOFR plus credit spread adjustment) that is applicable. The calculation below is based on the last 12 months of "Consolidated EBITDA" and "Consolidated net debt" at the end of each reported period, each as defined in the credit agreement that was in effect at the end of each such period (the Applicable Credit Agreement). The calculation of "Consolidated EBITDA" below sets forth, among other things, certain pro forma adjustments described in the Applicable Credit Agreement, including, pro forma adjustments for acquisitions or divestitures that occurred during the period and certain projected net cost savings, expense reductions and cost synergies. These pro forma adjustments are determined according to specified criteria set forth in the Applicable Credit Agreement, and as a result, the total adjustments calculated may not be comparable to the Company's estimates for other purposes, including as operating performance measures. The Company's management believes the presentation of "Consolidated EBITDA" is useful to investors to enhance their understanding of the Company's leverage ratio under the Applicable Credit Agreement and should not be evaluated for any other purpose. The leverage ratio calculated by the Company is a non-GAAP measure and should not be considered a substitute for the ratio of total debt to operating income, determined in accordance with GAAP. The Company's calculation of its leverage ratio might not be calculated in the same manner as, and thus might not be comparable to, similarly titled measures of other companies.

Twelve months ended

September 30,
2026

June 30,
2026

Net income from continuing operations attributable to DaVita Inc.

$          895

$          822

Income taxes

324

303

Interest expense

543

540

Depreciation and amortization

698

710

Impairment charges

62

—

Net income attributable to noncontrolling interests

299

342

Stock-settled stock-based compensation

117

127

Debt extinguishment and modification costs

11

16

Expected cost savings and expense reductions

10

7

Other

84

149

Consolidated EBITDA

$        3,042

$        3,018

September 30,
2026

June 30,
2026

Total debt, excluding debt discount and other deferred financing costs(1)

$      10,832

$      10,848

Less: Cash and cash equivalents including short-term investments(2)

(563)

(685)

Consolidated net debt

$      10,269

$      10,162

Last twelve months Consolidated EBITDA

$        3,042

$        3,018

Leverage ratio

3.38x

3.37x

Maximum leverage ratio permitted under the Credit Agreement

5.00x

5.00x

Certain columns or rows may not sum or recalculate due to the presentation of rounded numbers.

______________________

(1)

The debt amounts presented as of September 30, 2026 and June 30, 2026 exclude approximately $63.1 and $66.5, respectively, of debt discount, premium and other deferred financing costs related to our senior secured credit facilities and senior notes in effect or outstanding at that time.

(2)

This excludes amounts not readily convertible to cash related to the Company's non-qualified deferred compensation plans for all periods presented.

DAVITA INC.
RECONCILIATIONS FOR NON-GAAP MEASURES
(unaudited)

Note on Non-GAAP Financial Measures

As used in this press release, the term "adjusted" refers to non-GAAP measures as follows, each as reconciled to its most comparable GAAP measure as presented in the non-GAAP reconciliations in the notes to this press release: (i) for income and expense measures, the term "adjusted" refers to operating performance measures that exclude certain items such as, but not limited to, cybersecurity costs, impairment charges, gains or losses on ownership changes, restructuring charges, accruals for legal matters, and debt extinguishment and modification costs; and (ii) the term "effective income tax rate on adjusted income attributable to DaVita Inc." represents the Company's effective tax rate excluding applicable non-GAAP items and the tax associated with them as well as noncontrolling owners' income, which primarily relates to non-tax paying entities.

These non-GAAP or "adjusted" measures are presented because management believes these measures are useful adjuncts to GAAP results. However, these non-GAAP measures should not be considered alternatives to the corresponding measures determined under GAAP. 

Specifically, management uses adjusted operating income, adjusted net income attributable to DaVita Inc. and adjusted diluted net income per share attributable to DaVita Inc. to compare and evaluate our performance period over period and relative to competitors, to analyze the underlying trends in our business, to establish operational budgets and forecasts and for incentive compensation purposes. We believe these non-GAAP measures also are useful to investors and analysts in evaluating our performance over time and relative to competitors, as well as in analyzing the underlying trends in our business. Furthermore, we believe these presentations enhance a user's understanding of our normal consolidated results by excluding certain items which we do not believe are indicative of our ordinary results of operations. As a result, adjusting for these amounts allows for comparison to our normalized prior period results.

The effective income tax rate on adjusted income attributable to DaVita Inc. excludes noncontrolling owners' income and certain non-deductible and other charges which we do not believe are indicative of our ordinary results. Accordingly, we believe these adjusted effective income tax rates are useful to management, investors and analysts in evaluating our performance and establishing expectations for income taxes incurred on our ordinary results attributable to DaVita Inc.

Finally, free cash flow represents net cash provided by operating activities less distributions to noncontrolling interests, development capital expenditures, and maintenance capital expenditures; plus contributions from noncontrolling interests and proceeds from the sale of self-developed properties. Management uses this measure to assess our ability to fund acquisitions and meet our debt service obligations and we believe this measure is equally useful to investors and analysts as an adjunct to cash flows from operating activities and other measures under GAAP.

It is important to bear in mind that these non-GAAP "adjusted" measures are not measures of financial performance or liquidity under GAAP and should not be considered in isolation from, nor as substitutes for, their most comparable GAAP measures.

The following tables provide reconciliations of the non-GAAP financial measures presented in this press release to their most comparable GAAP measures.

DAVITA INC.

RECONCILIATIONS FOR NON-GAAP MEASURES - continued

(unaudited)

(dollars in millions, except per share data)

Adjusted net income and adjusted diluted net income per share attributable to DaVita Inc.:

Three months ended

Nine months ended

September 30,
2026

June 30,
2026

September 30,
2026

September 30,
2025

Dollars

Per share

Dollars

Per share

Dollars

Per share

Dollars

Per share

Consolidated:

Net income attributable to DaVita Inc.

$  223

$  3.40

$  265

$  4.02

$  686

$ 10.27

$  513

$  6.62

Goodwill and other asset impairments(1)

62

0.95

—

—

62

0.93

—

—

Goodwill and other asset impairments attributable to noncontrolling interests(1)

(34)

(0.53)

—

—

(34)

(0.51)

—

—

Cybersecurity incident-related charges(2)

—

—

—

—

—

—

25

0.33

Other loss, net - Mozarc net loss(3)

—

—

—

—

—

—

26

0.33

Income tax impact related to prior legal matter(4)

—

—

—

—

—

—

19

0.24

Related income tax

(1)

(0.01)

—

—

(1)

(0.01)

(6)

(0.08)

Adjusted net income attributable to DaVita Inc.

$  250

$  3.82

$  265

$  4.02

$  713

$ 10.67

$  576

$  7.44

Certain columns, rows or percentages may not sum or recalculate due to the presentation of rounded numbers.

Adjusted operating income:

Three months ended September 30, 2026

U.S.

dialysis

Ancillary services

Corporate

administration

U.S. IKC

U.S. Other

International

Total

Consolidated

Operating income (loss)

$   544

$        4

$      (6)

$     (16)

$   (19)

$       (26)

$     499

Goodwill and other asset impairments(1)

—

—

—

62

62

—

62

Adjusted operating income (loss)

$   544

$        4

$      (6)

$      46

$     44

$       (26)

$     561

Certain columns, rows or percentages may not sum or recalculate due to the presentation of rounded numbers.

Nine months ended September 30, 2026

U.S.

dialysis

Ancillary services

Corporate

administration

U.S. IKC

U.S. Other

International

Total

Consolidated

Operating income (loss)

$ 1,588

$      24

$     (20)

$      40

$     44

$       (72)

$   1,560

Goodwill and other asset impairments(1)

—

—

—

62

62

—

62

Adjusted operating income (loss)

$ 1,588

$      24

$     (20)

$     102

$   106

$       (72)

$   1,622

Certain columns, rows or percentages may not sum or recalculate due to the presentation of rounded numbers.

Nine months ended September 30, 2025

U.S. dialysis

Ancillary services

Corporate
administration

Consolidated

U.S. IKC

U.S. Other

International

Total

Operating income (loss)

$ 1,529

$     (24)

$     (14)

$      93

$     55

$     (101)

$   1,483

Cybersecurity incident-related charges(2)

25

—

—

—

—

—

25

Adjusted operating income (loss)

$ 1,554

$     (24)

$     (14)

$      93

$     55

$     (101)

$   1,508

Certain columns or rows may not sum or recalculate due to the presentation of rounded numbers.

DAVITA INC.

RECONCILIATIONS FOR NON-GAAP MEASURES - continued

(unaudited)

(dollars in millions, except per share data)

Effective income tax rates:

Three months ended

Nine months ended

September 30, 2026

September 30,
2026

June 30,
2026

Effective income tax rates on income attributable to DaVita Inc.:

Income before income taxes

$    359

$  435

$   1,135

Noncontrolling owners' income primarily attributable to non-tax paying entities

(46)

(78)

(202)

Income before income taxes attributable to DaVita Inc.

$    313

$  357

$      933

Income tax expense

$      89

$    92

$      247

Income tax benefit (expense) attributable to noncontrolling interests

1

(1)

—

Income tax expense attributable to DaVita Inc.

$      90

$    91

$      247

Effective income tax rate on income attributable to DaVita Inc.

28.7 %

25.6 %

26.5 %

Effective income tax rate on adjusted income attributable to DaVita Inc.:

Income before income taxes

$    359

$  435

$   1,135

Goodwill and other asset impairments(1)

62

—

62

Noncontrolling owners' income primarily attributable to non-tax paying entities

(46)

(78)

(202)

Goodwill and other asset impairments attributable to noncontrolling interests(1)

(34)

—

(34)

Adjusted income before income taxes attributable to DaVita Inc.

$    341

$  357

$      961

Income tax expense

$      89

$    92

$      247

Income tax benefit (expense) related to:

Goodwill and other asset impairments

1

—

1

Noncontrolling interests

1

(1)

—

Income tax on adjusted income attributable to DaVita Inc.

$      90

$    91

$      248

Effective income tax rate on adjusted income attributable to DaVita Inc.

26.6 %

25.6 %

25.8 %

Certain columns, rows or percentages may not sum or recalculate due to the presentation of rounded numbers.

DAVITA INC.

RECONCILIATIONS FOR NON-GAAP MEASURES - continued

(unaudited)

(dollars in millions, except per share data)

Free cash flow:

Three months ended

Nine months ended

September 30, 2026

September 30,
2026

June 30,
2026

September 30,
2025

Net cash provided by operating activities

$       519

$       490

$       842

$       1,330

Adjustments to reconcile net cash provided by operating activities to

 free cash flow:

Distributions to noncontrolling interests

(94)

(64)

(82)

(244)

Contributions from noncontrolling interests

—

—

1

5

Maintenance capital expenditures(5)

(112)

(123)

(119)

(309)

Development capital expenditures(6)

(47)

(47)

(47)

(122)

Proceeds from sale of self-developed properties

10

—

8

13

Free cash flow

$       276

$       256

$       604

$         672

Certain columns or rows may not sum or recalculate due to the presentation of rounded numbers.

Twelve months ended

September 30,
2026

June 30,
2026

September 30,
2025

Net cash provided by operating activities

$     1,870

$     2,193

$     1,893

Adjustments to reconcile net cash provided by operating activities to free cash flow:

Distributions to noncontrolling interests

(335)

(323)

(341)

Contributions from noncontrolling interests

8

9

8

Maintenance capital expenditures(5)

(417)

(424)

(423)

Development capital expenditures(6)

(160)

(159)

(178)

Proceeds from sale of self-developed properties

14

12

36

Free cash flow

$       980

$     1,308

$       996

Certain columns or rows may not sum or recalculate due to the presentation of rounded numbers.

______________________

(1)

Represents non-cash goodwill and other asset impairment charges related to our business in China, of which a portion was allocated to noncontrolling interests. These charges are excluded from our non-GAAP metrics because they do not occur in or reflect the ordinary course of our ongoing business, are inherently unpredictable and are non-cash amounts, the exclusion of which facilitates comparison of historical, current and forecasted financial results.

(2)

Represents charges recognized to work to remediate a cybersecurity incident and restore systems following the occurrence of the incident in the second quarter of 2025. We have excluded these charges from our non-GAAP metrics as we do not believe they are indicative of our ordinary results of operations.

(3)

Represents non-cash impairment and restructuring charges included in other losses related to our equity investment in Mozarc Medical Holding LLC. This loss does not represent a normal and recurring cost of operating our business or generating returns from investments and may obscure analysis of underlying trends and financial performance.

(4)

Represents the write-down of a tax receivable related to a 2014 tax refund claim. The claim related to estimated tax expense associated with a legal matter previously presented as a non-GAAP adjustment. We have excluded this charge from our non-GAAP metrics because, among other things, we do not believe it is indicative of our ordinary results of operations because the charge is significant and may obscure analysis of underlying trends and financial performance of our current business.

(5)

Maintenance capital expenditures represent capital expenditures to maintain the productive capacity of the business and include those made for investments in information technology, dialysis center renovations, capital asset replacements, and any other capital expenditures that are not development or acquisition expenditures.

(6)

Development capital expenditures principally represent capital expenditures (other than acquisition expenditures) made to expand the productive capacity of the business and include those for new U.S. and international dialysis center developments, dialysis center expansions and relocations, and new or expanded contracted hospital operations.

Contact:
Investor Relations
DaVita Inc.
[email protected]

SOURCE DaVita

LBMA members back tokenised gold but seek legal certainty and safeguards

Bristol Myers Squibb's (BMY +0.90%) Growth Portfolio of newer drugs grew 12% to $7.7 billion in the third quarter, supplying nearly all of the company's 7% revenue gain. Shares were roughly flat in midday trading. Bristol now grows on its newer medicines. The drop in adjusted earnings reflects the cost of buying its next ones, not a weaker core business.

Key Numbers

Total revenue: $13.1 billion, up 7% from the prior-year quarterGrowth Portfolio revenue: $7.7 billion, up 12%Earnings per share: $1.05 GAAP and $1.35 adjusted, with adjusted down 17% from $1.632026 revenue guidance: raised to $49.75 billion to $50.25 billionWhat It Means

The Growth Portfolio added roughly $830 million in sales from a year ago, about as much as the whole company added. The release credits Opdivo Qvantig, Breyanzi and three other drugs, so growth doesn't hang on a single launch. That breadth is what a company replacing aging blockbusters needs.

The Legacy Portfolio rose 1%, but only because Eliquis outran generic erosion across the older drugs. Eliquis faces its own patent expiration later this decade, so that stability is temporary.

BMY Bristol Myers Squibb$61.12+$0.55 (+0.90%)

NYSE · As of 3:50 PM ET 10/29/26

The earnings decline is mostly deal accounting. Acquired IPRD charges are upfront payments for drug candidates licensed from other companies. Net of licensing income, they cost $0.58 a share. The release raises the sales outlook but only "updates" the adjusted EPS range, which now absorbs those charges. Bristol is spending today's earnings to refill its pipeline before Eliquis fades.

What to Watch Next

Track whether the Growth Portfolio holds double-digit growth as Eliquis gains slow. Also watch whether the licensed programs produce data that justifies their price.

David Kretzmann has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol Myers Squibb. The Motley Fool has a disclosure policy.

Do you want a permanent income stream from the stocks you own? It's easy to find stocks with high dividend yields. Unfortunately, most of them are mature, sometimes stagnant businesses with only enough growth to support slow, steady increases.

Why not dial up the difficulty to find a generous dividend that can still easily outpace inflation for years to come? Philip Morris International (PM +2.92%) yields 3.2% and has raised its dividend annually since it began trading in 2008.

Its most recent increase, a hefty 8.8% bump, is impressive and no fluke. Here's why investors can buy, hold, and look forward to increasingly generous dividends from this tobacco giant for the foreseeable future.

Image source: Getty Images.

The legacy business still shines At first glance, it's fair to wonder why one might invest in tobacco stocks. Smoking rates have been declining for decades in the United States. However, Philip Morris primarily operates outside the United States, selling Marlboro worldwide.

The smoking decline isn't as straightforward in international markets, where rapid population growth has helped buoy the number of smokers despite the actual smoking rate decreasing.

Whereas sister company Altria Group, which sells Marlboro in America, reported a 3.2% decrease in domestic cigarette volume in the third quarter of 2026, Philip Morris' volumes held flat. Pricing power enabled the company to boost its organic gross profit from combustibles by 7.4%. In other words, cigarettes remain a very viable business internationally.

The future is coming sooner rather than later That hasn't stopped Philip Morris from pushing to shift its business toward reduced-risk products, such as oral nicotine salt pouches, electronic vapes, and heat-not-burn tobacco devices.

The products have accounted for a whopping 42% of Philip Morris' net revenue through nine months of 2026. That puts Philip Morris squarely in the driver's seat in this industrywide race to a future beyond cigarettes.

With both major business segments thriving, Philip Morris has a strong growth outlook. Analysts see the company growing earnings by an average of nearly 9% annually over the next three to five years, and I wouldn't be shocked to see that pace sustained longer due to the immense pricing power nicotine creates.

$208.56+$5.92 (+2.92%)

NYSE · As of 3:54 PM ET 10/29/26

A 3.2% yield with tons of room to run The company's cash payout ratio is only about 67% at the moment, which serves as a useful financial buffer and provides management with some flexibility. Philip Morris has been investing heavily over the past several years, first acquiring Swedish Match and then expanding manufacturing capacity to grow its Zyn brand.

Regardless of those investments, free cash flow has trended upward over the past few years. It's a sign that the business is outgrowing its capital spending, a good sign for investors moving forward.

Not many stocks offer a 3.2% dividend yield and near-double-digit earnings growth. But Philip Morris does, and the dividend will likely continue to stack up for years to come. It could also provide some stellar total returns along the way.

On its third quarter of 2026 earnings call, held on Oct. 28, 2026, ServiceNow (NOW -26.77%) announced that it raised its full-year target for artificial intelligence (AI) annual contract value, which measures recurring annual subscription revenue from customer contracts, to over $1.7 billion. That increase reflects enterprise clients moving beyond software testing into full automated deployment. Three takeaways from management's call stand out for long-term investors.

1. Artificial Intelligence Target Expands to $1.7 BillionServiceNow raised its full-year artificial intelligence annual contract value target from $1.5 billion to over $1.7 billion. Customer adoption is accelerating as enterprise clients expand automated workflows beyond early testing.

As a reminder, we began the year with a $1 billion AI target by year-end. We raised that target to $1.5 billion at Financial Analyst Day in May. Today, we are raising that target again this time to $1.7 billion plus by year-end.
-- William McDermott, Chairman and Chief Executive Officer2. Deployment Teams Accelerate Enterprise Customer AdoptionManagement made a deliberate choice to include specialized deployment assistance with platform software for select large customer agreements. This investment temporarily shifts a fraction of revenue from subscriptions into professional services, but speeds up how fast clients implement software and consume automated tasks. Upon renewal of those contracts, the value of those services return to subscription sales.

To help our customers realize value even faster at scale, we've made the strategic decision to invest in their success by including delivery expertise with our platform solutions to accelerate AI deployments for select large deals.
-- Gina Mastantuono, President and Chief Financial Officer3. Large Deals Drive Broad Platform AdoptionEnterprise clients are buying broader product bundles rather than isolated software features. Deals involving multiple artificial intelligence products expanded rapidly, helping lift total contract commitments across major business functions.

In Q3, the number of AI deals over $1 million grew 4.5x year-over-year. We're also seeing customers embrace AI more broadly across their enterprises with deals spanning five or more AI products increasing over 8.5x year over year.
-- Gina Mastantuono, President and Chief Financial OfficerLooking AheadSoftware demand expands as enterprise clients shift from pilot testing into full production. ServiceNow leverages deep system integration to entrench its platform, while management monitors deployment speed and pricing discipline.

We see clear momentum in AI monetization driven by our organic innovation, our pricing, and our intelligent packaging.
-- William McDermott, Chairman and Chief Executive OfficerThe company continues expanding profit margins while funding software engineering and direct sales.

As you'll hear in the raised full year guidance, we're a company going from the rule of 56 to the rule of 57 on our way to the rule of 60. That, of course, is free cash flow plus revenue growth.
-- William McDermott, Chairman and Chief Executive OfficerThe Motley Fool has positions in and recommends ServiceNow. The Motley Fool has a disclosure policy.

In an environment where retail investing activity has fallen sharply, aerospace and defense contractor Lockheed Martin (LMT +2.17%) has seen its market value go up nearly 15% at one point since last Thursday's third-quarter results.

Against this backdrop, a double-digit rally following earnings may instinctively prompt investors to anticipate a pullback. However, over a three- to five-year horizon, it could mark the early stages of a longer rally for America's largest defense contractor by revenue.

The general anxiety levels seen today in the stock market and financial media may sound as though doomsday is approaching. In reality, however, the market is far more fractured than the prevailing sentiment suggests. Institutional investors are quietly rotating capital out of overvalued, highly vulnerable sectors and into companies that have greater structural immunity and long-term visibility.

Image source: The Motley Fool.

The most important number: $292 billionAt the core, Lockheed Martin is transitioning from a traditional defense contractor into a faster-moving, integrated defense technology and manufacturing firm. It is expanding production capacity ahead of customer requirements and using long-term contracts to support sustained growth.

Management announced a record-breaking backlog of $292 billion, with nearly a fifth of that amount going into producing missile interceptors under a multi-year contract. For context, over the previous four quarters, backlog has cumulatively grown by 63%, from just $179 billion.

Meanwhile, management has revised free cash flow expectations for 2026 from a midpoint of $6.65 billion at the beginning of this year to $7.9 billion in three quarters.

Why does this matter?Despite a solid outlook and a 15% gain since last week, Lockheed Martin shares have only returned 29% this year. While that may seem substantial in isolation, particularly given the S&P 500's 12% gain over the same period, it is difficult to argue that the stock has exhausted its upside potential.

For the third quarter, sales grew in all four segments, with Missiles and Fire Control (MFC) leading the way at 24% year-on-year growth. The segment was equally profitable. Despite accounting for less than 22% of total revenue, MFC contributed nearly 29% of total operating profit. Notably, the PAC-3 interceptor leads with a seven-year contract that's cumulatively worth $58.6 billion.

Beyond munitions production, the F-35 aircraft program continues to be a growth engine for the company, having secured a new multiyear contract in the aeronautics segment. On the earnings call, management specifically noted that the aircraft is singularly contributing to expanding profit margins for the company.

$643.45+$13.70 (+2.17%)

NYSE · As of 3:52 PM ET 10/29/26

A more efficient operating modelInstead of developing individual systems and platforms in isolation, management is outlining how existing and future systems can work together to deliver incremental gains.

Additionally, the company's 1LMX initiative, a model-based engineering and production system, uses digital technology to design, model, and test products before actually investing in physical hardware by using digital twins and digital threads. This creates far greater efficiency and reduces wasted or sunk costs.

Backlog alone may not guarantee profitsYet backlog isn't the same as profits. These multi-year contracts must still be executed. Moreover, as in any manufacturing business, expansion in actual production depends heavily on suppliers, labor availability, and manufacturing efficiency.

More importantly, investors must keep an eye ‌on margins. While the long-term economics look favorable, Lockheed's ability to consistently deliver top-grade returns depends on whether these contracts get the final go-ahead and whether these operational changes translate into actual free cash flow growth.

LMT PE Ratio data by YCharts.

Priced like a growth stockAt nearly 23 times trailing price-to-earnings (P/E) ratio, Lockheed Martin stock isn't exactly cheap. For context, Northrop Grumman (NOC +1.75%) stock trades at a more conservative 18 times trailing earnings. It's evident the market is already pricing in a lot of growth by pricing Lockheed higher. However, this doesn't necessarily mean the stock fully reflects its longer-term growth potential.

If you believe defense spending and missile production will remain elevated, and you're comfortable with government-contract and geopolitical risks, Lockheed Martin may be worth looking into.

The 24th consecutive annual dividend raise of $0.15, to $3.60, also makes the stock attractive to dividend investors.

Lockheed Martin has a compelling growth story after last week's third-quarter earnings release. Given today's geopolitical landscape, I'd put this stock on the buy list for long-term exposure to the defense sector. But more importantly, I'd watch for sustained sales growth driving higher profit margins.

Broadcom's AI revenue is growing faster than almost anyone on Wall Street expected, yet the stock sits nearly 30% below its 52-week high. Something about that disconnect deserves a closer look.

The 24/7 Wall St. price target for Broadcom (NASDAQ:AVGO | AVGO Price Prediction) is $415.95. This sits 21.55% above the $342.19 reference price, and the model rates the stock a buy.

Metric
Value

Current Price
$342.19

Price Target from 24/7 Wall St.
$415.95

Upside/Downside
21.55%

Recommendation
BUY

Confidence Level
90%

We hold this view with high confidence. Broadcom designs custom AI accelerators (XPUs) for Google (NASDAQ:GOOGL), Anthropic, OpenAI and Meta (NASDAQ:META).

Management expects fiscal 2027 AI revenue to about double to $115 billion. Even so, the stock has fallen behind the AI trade this year, and that gap is where our model finds upside.

Record AI Sales Meet a Stock Stuck Near Flat
Shares rose 1.32% to $346.86 Wednesday. They are up 3.74% over the past week, down 1.69% over the past month and up only 0.77% year to date. That leaves Broadcom 29.7% below its $493.28 52-week high and 20.0% above its $288.95 low.

The business looks far stronger than the share price. Fiscal third-quarter revenue reached $29.59 billion, up 85.5% and ahead of the $29.44 billion estimate. EPS of $3.32 beat the $3.24 consensus.

AI semiconductor revenue grew 221% to $16.70 billion, and fourth-quarter guidance calls for $21.7 billion. On October 26, Bank of America, Blackstone, Citi and Morgan Stanley announced a $63 billion financing structure for AI compute capacity built around Broadcom.

Why Bulls See $535 Ahead
Management expects AI revenue of $230 billion in fiscal 2028 and EPS above $30. Anthropic plans to deploy 5 gigawatts of TPU version 8i in 2027, and Broadcom sees a path to another 10 gigawatts for Anthropic in 2028.

Each gigawatt takes about $20 billion to $30 billion of Broadcom content. The 7 Strong Buy, 40 Buy and 3 Hold ratings support a consensus target of $529.10. The bull case reaches $535.01.

What Could Stall the Custom Chip Story
Revenue depends on just six XPU customers. Management also named land, power, data-center shell preparation and financing as timing risks. Gross margin fell 210 basis points from the prior quarter to 75%, though that reflects a greater mix of AI chips, and operating margin hit a record 67.9%.

Barron’s also reports that NVIDIA (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) have taken equity in Meta as they fight custom chips (Barron’s). The bear case still lands at $369.18.

Broadcom Trades Like NVIDIA but Grows Like a Challenger

Company
Trailing P/E
Latest Quarter Revenue Growth

Broadcom
44x
85.5%

NVIDIA
44x
105.85%

AMD
211x
50.11%

NVIDIA belongs here because its GPUs are the chips Broadcom’s XPUs aim to replace. NVIDIA posted $96.22 billion in revenue last quarter and is up 16.63% year to date. Broadcom trades at the same trailing multiple but guides to faster AI growth, which makes its lag look like a valuation gap.

AMD competes for the same hyperscaler budgets, including a Meta deal for up to 6 gigawatts of GPUs. At 211x earnings, AMD makes our target look conservative.

Broadcom Earns Its Buy Rating
The 24/7 Wall St. price target of $415.95 comes with a buy rating and 90% confidence. Broadcom’s forward P/E of 19 against revenue that is nearly doubling tips the scale.

The thesis holds if Anthropic and OpenAI deployments stay on schedule. It weakens if power or financing delays drove gigawatts into later years.

The 24/7 Wall St. price target model projects where Broadcom could trade, assuming current trends hold.

Year
Price Target from 24/7 Wall St.

2026
$363.58

2027
$405.51

2028
$471.37

2029
$515.01

2030
$575.57

The projections assume Broadcom keeps executing on custom silicon. The biggest swing factors are whether frontier labs keep financing gigawatt-scale buildouts and how fast new supply comes online. The power, cooling, and networking companies behind those data centers are the other half of this trade, and we rounded up seven of them in a free AI infrastructure report.

Contact [email protected] for any questions or corrections.

Portage, Michigan, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Stryker (NYSE:SYK) reported operating results for the third quarter of 2026:

Coinbase reports its Q3 results late Thursday. The crypto exchange faces tough year-over-year comparisons.

Roblox has surged 21% in October even as a short seller publishes damning claims about fake users and broken parental controls. With earnings due after the close, bulls and bears need very different proof from the same quarterly report.

October has been a rebound month for Roblox (NYSE:RBLX | RBLX Price Prediction), and the timing raises a fair question with its quarterly report due after the close. Roblox stock is up 21% since the September 30 close to $51.38 during Tuesday’s session, even as it slips ahead of the upcoming third-quarter earnings report. That gain still leaves the stock down 37% year to date.

Roblox has moved sharply against its sector. The Communication Services Select Sector SPDR Fund (NYSEARCA:XLC) is down 7% in October. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 1% over the same stretch.

How Roblox Climbed Back From Its July Low Shares of Roblox fell after the company’s July 30 Q2 2026 report, when weaker monetization and a soft bookings outlook eclipsed growth. The stock hit a 52-week low of $33.88 on July 31 before starting to recover. That recovery wasn’t smooth, as Roblox dropped 10% on September 28 after Jefferies downgraded the stock.

24/7 Wall St. asked on October 19 whether Roblox was dead money after its 2026 slide. October’s climb has since moved the debate toward what the Q3 report can deliver.

Roblox Earnings Setup Points to Falling Bookings The company will release its Q3 2026 results after the market closes on October 29. Roblox’s own guidance calls for Q3 revenue of $1.41 billion to $1.49 billion, or growth of 4% to 10% year over year (YoY). Under that same outlook, Roblox expects bookings to fall 14% to 18% YoY. Analysts expect a loss of $0.41 per share.

Chief Financial Officer Naveen K. Chopra warned on the July 30 call that “Monetization weakness is likely to continue.” That caution from Roblox’s finance chief sets a low bar, which could cut either way for the stock.

Bull Case for Roblox Rests on Cash and Older Users Roblox’s Q2 revenue rose 36% to $1.5 billion. Daily active users reached 123 million, up 10%, according to Roblox, a level Bleecker Street Research flags as a decline. Free cash flow rose 66% to $294 million, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached $152 million, Roblox disclosed.

Growth among U.S. users aged 18 and older hit 32% at Roblox in Q2, a group that tends to spend more. AI-powered creation tools such as Build and discovery features such as Moments could lift engagement and spending over time.

Nick McKay of Freedom Capital Markets rates Roblox a Buy with a $55 target, and Alicia Reese of Wedbush raised her target to $55 from $48 while keeping a Neutral rating. According to Barchart, Roblox carries a consensus Moderate Buy rating and a Street-high target of $95.

Bear Case Centers on Bleecker Street’s Short Report Bleecker Street Research disclosed a short position in Roblox on October 27, and the shares fell. In its report, Bleecker Street Research said it bought 100 age-verified child accounts on third-party marketplaces for $190.91, claiming that Roblox’s age-verification system is easily circumvented. The short seller also documented ways to bypass parental controls.

On growth, Bleecker Street Research argued Roblox’s daily active users fell from 151.5 million to the Q2 level noted above, while monthly paying users dropped from 36.7 million to 27 million. Roblox’s creator payout growth slowed from 85% to 15%, Bleecker Street Research said. Using third-party data, Bleecker Street Research estimated Roblox’s new active users fell by about half YoY in Q3.

Child safety remains a broader concern for Roblox. Los Angeles County has sued the company, alleging the platform fails to protect children. The stock also now trades above the $51.12 average analyst price target.

Roblox Breaks Away From Take-Two and Unity Roblox’s closest gaming peers have moved the other way. Take-Two Interactive (NASDAQ:TTWO) stock is down 7% in October to $192.41, with its Grand Theft Auto VI launch set for November 19. Shares of Unity Software (NYSE:U) are down 4% over the same stretch to $39.21.

Each business makes its money differently. At Roblox, creators build experiences and players spend Robux, with the company taking a share. Rockstar Games, 2K and Zynga give Take-Two a slate of discrete titles plus recurring in-game spending. Unity’s model leans on game-engine subscriptions and an AI-driven mobile ad network, so it’s tied to gaming only indirectly.

Bulls and Bears Need Different Proof From Roblox’s Q3 Numbers The bulls need Roblox to deliver bookings at or above the top of its guided range, plus signs that older users and new discovery tools are lifting spending per hour.

For the bears, the report would need to echo Bleecker Street’s user-decline claims or pair them with a weak Q4 outlook. Shareholders face a stock that moved sharply after its July 30 report. Investors may want to be cautious while the debate over Roblox’s monetization continues.

Contact [email protected] for any questions or corrections.

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29.10.2026

21:01Rotace na trhu zasáhla vítěze AI boomu, Alphabet spustil výprodej technologických akcií  

18:25Druhá derivace zlata

16:45Preview Erste: Banka potvrdí růst klíčových výnosů, zisk ale bude stagnovat  

15:54ECB ponechala sazby beze změny, Lagardeová oznámila předčasný odchod

15:35Výsledky Microsoftu: AI konečně vydělává, Azure roste o 48 % a miliardový účet se nově přesouvá i na věřitele  

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13:40Poptávka po lécích na hubnutí zůstává silná, a tak Eli Lilly zvyšuje celoroční výhled

13:15Lagardeová v únoru předčasně odstoupí z funkce šéfky ECB

12:18Výsledky Alphabetu: Cloud září, ale účet za umělou inteligenci začíná děsit i ty největší optimisty  

11:31Výsledky Alphabetu táhnou dolů americké indexy, Evropě však v růstu nepřekáží  

10:55Vysoká očekávání ServiceNow nenaplnila. Akcie padají až o 18 procent

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8:55Zisk Volkswagenu za tři čtvrtletí klesl o 98,7 procenta

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8:10Komerční banka dál roste v úvěrech i počtu klientů. Nižší marže ale brzdí ziskovost

7:11Komerční banka, a.s.: Hospodářské výsledky 3Q 2026

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21:55Microsoft předčil očekávání, překvapil i nižším kapitálovými výdaji

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Fortinet (FTNT -21.81%) just raised its full-year forecast for the third time this year. The cybersecurity stock still tanked, plummeting 22% as of 2:30 p.m. ET Thursday to its lowest level in nearly five months.

Fortinet makes money in two ways. It sells physical and virtual network security products, notably its FortiGate firewalls, and then charges recurring fees for services and subscriptions to keep those firewalls secure.

It's a classic razor-and-blade model, where the company sells products at lower margins to get its gear onto customers' networks. Then it makes most of its profit on the subscriptions that follow.

Management now expects more revenue this year than it did three months ago. So why is the stock falling?

Image source: Getty Images.

Fortinet's Q3: the numbers you must know The razors are in high demand. Product revenue jumped 37% year over year in the third quarter, as customers moved to higher-performing models at higher prices, and total revenue climbed 20%. Price hikes helped.

Billings rose 29% to $2.3 billion, reflecting strong future revenue potential.

The blades are the problem, or so the market thinks. Services made up over 65% of Fortinet's revenue and an even higher percentage of gross profits last year. That service revenue grew just 13% in Q3. Management also trimmed its full-year service revenue forecast. The cut was tiny, under 1% at the midpoint, but it was a cut nonetheless.

FTNT Fortinet$136.12-$37.96 (-21.81%)

NASDAQ · As of 3:42 PM ET 10/29/26

If you look at sequential growth, overall business cooled off. In Q2, revenue grew 26%, product revenue 52%, and billings 33%.

That leaves investors with an uncomfortable question: Are Fortinet's high-flying days over?

What this means for Fortinet stockFortinet shares had climbed 120% this year before earnings stalled the rally. Any sign of a cooling off was bound to hit the stock price.

Investors, perhaps, interpret the service guidance cut as a sign that enterprise spending, or customers moving onto Fortinet's platform, could slow next year. The fear rippled across the industry and pulled other cybersecurity stocks down as well.

Fortinet isn't the kind of company to write off based on one quarter. Management expects billings to grow about 28% this year and revenue about 20%. It also lifted its full-year earnings forecast and boosted its buyback program by $1.2 billion.

The next few quarters come down to one number: service revenue growth. If that starts accelerating again, the stock's drop will look like a blip. Miss again, and the market will stop giving management the benefit of the doubt.

Invitation Homes Inc. (INVH) Q3 2026 Earnings Call October 29, 2026 11:00 AM EDT

Company Participants

Scott McLaughlin - Senior Vice President of Investor Relations & Tax
Dallas Tanner - Co-Founder, CEO, President & Director
Tim Lobner - Executive VP & COO
Jonathan Olsen - Executive VP, CFO & Treasurer

Conference Call Participants

Eric Wolfe - Citigroup Inc., Research Division
Steve Sakwa - Evercore ISI Institutional Equities, Research Division
James Feldman - Wells Fargo Securities, LLC, Research Division
Nahom Tesfazghi - JPMorgan Chase & Co, Research Division
Juan Sanabria - BMO Capital Markets Equity Research
Austin Wurschmidt - KeyBanc Capital Markets Inc., Research Division
Haendel St. Juste - Mizuho Securities USA LLC, Research Division
Julien Blouin - Goldman Sachs Group, Inc., Research Division
John Pawlowski - Green Street Advisors, LLC, Research Division
Brad Heffern - RBC Capital Markets, Research Division
Adam Kramer - Morgan Stanley, Research Division
Jana Galan - BofA Securities, Research Division
Richard Hightower - Barclays Bank PLC, Research Division
Ami Probandt - UBS Investment Bank, Research Division
Peter Abramowitz - Deutsche Bank AG, Research Division
Jesse Lederman - Zelman & Associates LLC
Jason Sabshon - Keefe, Bruyette, & Woods, Inc., Research Division

Presentation

Operator

Welcome to the Invitation Homes Third Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. At this time, I would like to turn the conference over to Scott McLaughlin, Senior Vice President of Investor Relations. Please go ahead.

Scott McLaughlin
Senior Vice President of Investor Relations & Tax

Thank you, operator, and good morning. On the call today, we'll hear from Dallas Tanner, our President and Chief Executive Officer; Tim Lobner, our Chief Operating Officer; and Jon Olsen, our Chief Financial Officer. Following our prepared remarks, we'll open the line for questions from our covering sell-side analysts. During today's call, we may reference our third quarter 2026 earnings release and supplemental information. We issued this document yesterday afternoon after the market closed, and it's available on the Investor Relations

West Pharmaceutical Services, Inc. (WST) Q3 2026 Earnings Call October 29, 2026 8:00 AM EDT

Company Participants

Michele Polinsky - Vice President of Global Communications
Michel Lagarde - President, CEO & Director
Robert McMahon - Senior VP & CFO

Conference Call Participants

Paul Knight - KeyBanc Capital Markets Inc., Research Division
Daniel Markowitz - Evercore ISI Institutional Equities, Research Division
Matthew Larew - William Blair & Company L.L.C., Research Division
Justin Bowers - Deutsche Bank AG, Research Division
Lawrence Solow - CJS Securities, Inc.
Douglas Schenkel - UBS Investment Bank, Research Division
David Windley - Jefferies LLC, Research Division
Salem Salem - Barclays Bank PLC, Research Division
Brendan Smith - TD Cowen, Research Division
Curtis Moiles - BNP Paribas, Research Division
Steven Etoch - Stephens Inc., Research Division
Avantika Dhabaria - BofA Securities, Research Division

Presentation

Operator

Good day, and thank you for standing by. Welcome to the Q3 2026 West Pharmaceutical Services Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Michele Polinsky, Vice President of Communications.

Michele Polinsky
Vice President of Global Communications

Good morning, and welcome to West's Third Quarter Earnings Conference Call, which has been webcast live. With me today on the call are West's President and CEO, Michel Lagarde; and West's Senior Vice President and CFO, Bob McMahon. Earlier today, we issued our third quarter financial results. A copy of the press release, along with today's slide presentation containing supplemental information for your reference has been posted in the Investors section of the company's website at investor.westpharma.com. Later today, a replay of the webcast will also be available in the Investors section of our website.

Before we begin, we'd like to remind you that statements made by management during this call and in the accompanying presentation contain

Key Takeaways Corning's Q3 core sales rose 19% to $5.08 billion, while core earnings jumped 36% to 91 cents per share.GLW's Optical Communications sales surged 44%, driven by an 84% jump in Enterprise Networks revenues.GLW operating margin expanded to 22.7%, while Q4 guidance signals continued double-digit earnings growth.
Corning Incorporated (GLW - Free Report) delivered a sharp acceleration in third-quarter 2026 growth as demand for optical connectivity tied to AI infrastructure lifted sales and profitability.

Core sales increased 19% year over year to $5.08 billion, while core earnings rose 36% to 91 cents per share. The more important question for investors is whether the quarter represents a durable increase in Corning’s earnings power rather than a temporary burst of AI-related demand.

Image Source: Zacks Investment Research

The combination of rapid Optical Communications growth, expanding margins, long-term customer agreements and another quarter of double-digit earnings growth points toward a broader operating shift. Solar execution remains the main counterweight.

Corning's Optical Sales Surge 44%Optical Communications generated third-quarter sales of $2.38 billion, up 44% year over year. Segment net income surged 80% to $532 million, showing that rising AI-related demand is contributing to profits as well as revenues.

Enterprise Networks drove the advance. Sales in the business increased 84% year over year to $1.53 billion, while Gen AI product sales more than doubled. Carrier Network sales rose 4% to $854 million, supported by data-center interconnect demand.

The results reflect increasing deployment of optical connectivity as AI data centers require greater bandwidth and denser network architectures. Corning is benefiting as customers expand fiber and connectivity content within those systems.

GLW Locks In Major Customer CommitmentsCorning also added longer-term visibility to the AI opportunity during the quarter.

The company secured four long-term, multibillion-dollar customer agreements, including agreements with Verizon (VZ - Free Report) and AT&T (T - Free Report) . These commitments support Corning’s manufacturing expansion and help share some of the cost and risk associated with adding capacity.

Existing relationships with Meta, Amazon and NVIDIA broaden Corning’s exposure to large-scale AI infrastructure investment. The NVIDIA relationship, for example, is tied to a major expansion of U.S. optical-connectivity manufacturing capacity and domestic fiber production.

These agreements matter because AI infrastructure spending can be volatile. Longer-term commitments give Corning greater demand visibility as it invests ahead of future capacity requirements.

Corning Converts Growth Into Higher MarginsThe third quarter also showed that Corning is converting faster sales growth into better operating economics.

Core gross margin expanded 150 basis points year over year to 40.5%. Core operating margin improved 310 basis points to 22.7%, while core return on invested capital increased 330 basis points to 16.7%.

That margin expansion strengthens the case that AI-related growth is becoming more valuable financially, rather than simply adding volume. Core earnings growth of 36% was nearly twice the 19% increase in core sales.

Corning also generated $661 million of adjusted free cash flow in the quarter while continuing to invest more than $500 million in capital expenditures to support demand.

GLW's Fourth-Quarter Outlook Extends MomentumManagement expects the growth trend to continue in the fourth quarter.

Corning projects core sales of $5.2-$5.3 billion, representing approximately 19% year-over-year growth. Core earnings are expected to reach 96 cents to $1 per share, implying growth of roughly 36%.

The outlook is important because it suggests the third-quarter acceleration is extending beyond a single reporting period. Corning’s Springboard plan is built around reaching a $40 billion annualized sales run rate by the end of 2030, with earnings expected to grow faster than sales.

Continued margin expansion alongside double-digit revenue growth would strengthen the case that the company is moving into a higher earnings-power phase.

Corning's Solar Ramp Remains the CounterweightSolar remains the clearest operating challenge.

Third-quarter Solar sales increased 37% year over year to $436 million, but the segment recorded a $7 million net loss. Production at Corning’s wafer and module facilities continues to ramp, although progress has been slower than anticipated.

Management expects improved productivity to lift output and profitability as the operations scale. Until that happens, Solar remains a drag on the otherwise improving profit profile.

The segment could eventually become a sizable additional growth platform, with Corning targeting a Solar revenue stream of more than $3 billion. For now, investors need evidence that higher revenues can translate into sustained profits.

GLW's Scores Reinforce the Earnings MomentumGLW currently carries a Zacks Rank #1 (Strong Buy). Its Momentum Score of A and Growth Score of B fit the acceleration visible in Optical Communications, earnings and operating margins. You can see the complete list of today’s Zacks #1 Rank stocks here.

The stock also has a VGM Score of B, while its Value Score of D remains the main offset. Zacks Style Scores are designed to complement the Zacks Rank, with A and B representing the more favorable grades.

The third-quarter results strengthen the case that AI infrastructure demand is creating more than a temporary revenue spike for Corning. Long-term customer commitments, rising margins and fourth-quarter guidance all point toward improving earnings power.

Solar profitability and valuation discipline still matter. Yet the current operating evidence increasingly supports the view that Corning’s AI optical opportunity is developing into a multiyear growth driver rather than a one-quarter demand event.

Lawsuit alleges FuelCell Energy, Inc. made misleading statements to investors from June 24, 2026 to September 1, 2026; lead plaintiff motions are due November 10, 2026

, /PRNewswire/ -- The Law Offices of Frank R. Cruz today announced a class action lawsuit against FuelCell Energy, Inc. ("FuelCell" or the "Company") (NASDAQ: FCEL) on behalf of investors who acquired the Company's securities from June 24, 2026 to September 1, 2026. Filed on September 11, 2026, the case is Nguyen v. FuelCell Energy, Inc. et al., U.S. District Court for the Southern District of New York, Case No. 26-cv-07953.

If you lost money on FuelCell Energy, Inc. securities, submit your FuelCell Energy, Inc. loss information by November 10, 2026 to learn about participating in the lawsuit.

FuelCell Energy, Inc. class action timeline

Class period begins: June 24, 2026Class period ends: September 1, 2026Complaint filed: September 11, 2026Lead plaintiff motion deadline: November 10, 2026What happened?

On September 2, 2026, FuelCell reported its fiscal third-quarter results. The Company reported, among other things, that revenue fell 29% year over year to $33 million, primarily due to lower product sales caused by fewer module deliveries to customers in South Korea. FuelCell further reported it saw a gross loss from product revenues for the quarter reflecting that product costs and manufacturing overhead currently exceeded the contractual pricing established under the Fit Energy agreement. FuelCell recognized approximately $17 million in charges related to the initial 30 MW phase of that agreement.

On this news, FuelCell shares fell $2.68 or 15.69% to close at $14.40 on September 2, 2026, thereby injuring investors.

What is the FuelCell Energy, Inc. lawsuit about?

The FuelCell Energy, Inc. securities lawsuit alleges that, between June 24, 2026 and September 1, 2026, defendants made materially false and/or misleading statements and failed to disclose material adverse facts about FuelCell Energy, Inc.'s business, operations, and prospects. Specifically, the complaint alleges defendants failed to disclose that: (1) the Company's manufacturing capacity was inadequate to generate the production rate required under the CEPA; (2) as a result, the Company's annualized production rate for deliveries under the CEPA with Fit Energy was slower than expected; (3) as a result, the Company was incurring higher product costs and manufacturing overhead expenses; (4) as a result of the slower production rate, the Company was reasonably likely to incur charges in connection with the CEPA; (5) the foregoing was a known trend affecting the Company's profitability; and (6) as a result, defendants' positive statements about FuelCell Energy, Inc.'s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

"According to the complaint filed against FuelCell Energy, Inc., the Company, among other things, did not disclose that the Company's manufacturing capacity was inadequate to generate the production rate required under the CEPA. The November 10, 2026 deadline is a key date for FuelCell Energy, Inc. investors who want a voice in how this case moves forward," said Frank R. Cruz of The Law Offices of Frank R. Cruz.

What should FuelCell Energy, Inc. investors do now?

The Law Offices of Frank R. Cruz can help FuelCell Energy, Inc. investors evaluate potential claims to recover their losses.

Investors who want to serve as lead plaintiff in the FuelCell Energy, Inc. class action must file a motion with the Court by November 10, 2026. For more information, visit the FuelCell Energy, Inc. case page, email [email protected], or call 310-914-5007.

If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.

Investors may retain counsel of their choice. FuelCell Energy, Inc. investors who bought during the class period may also take no action and remain absent class members. No class has been certified yet in the FuelCell Energy, Inc. case.

Questions and answers about the FuelCell Energy, Inc. lawsuit

Who is eligible? Investors who bought FuelCell Energy, Inc. securities between June 24, 2026 and September 1, 2026 and lost money may be class members, and may seek lead plaintiff appointment by November 10, 2026.

What does a lead plaintiff do? The lead plaintiff is appointed by the court to represent all class members and direct the FuelCell Energy, Inc. class action.

Must I be lead plaintiff to share in a recovery? No, FuelCell Energy, Inc. investors can take no action and remain absent class members.

How are attorneys' fees handled? The Law Offices of Frank R. Cruz works on contingency, so FuelCell Energy, Inc. investors pay no attorneys' fees up front. Any attorneys' fees and litigation expenses come only from a recovery, if there is one, and require court approval.

About The Law Offices of Frank R. Cruz

The Law Offices of Frank R. Cruz investigates and prosecutes securities fraud and corporate malfeasance class actions. With nearly 20 years of litigation experience, the firm focuses on complex securities class actions and gives each client personal, one-on-one attention throughout the legal process.

Prior results do not guarantee a similar outcome.

Related links

FuelCell Energy, Inc. case page, The Law Offices of Frank R. CruzComplaint: Nguyen v. FuelCell Energy, Inc. et al., U.S. District Court for the Southern District of New Yorkpress releaseFuelCell Energy, Inc. SEC filings index, EDGARThe Law Offices of Frank R. CruzFollow The Law Offices of Frank R. Cruz for updates on Twitter: twitter.com/FRC_LAW

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

SOURCE The Law Offices of Frank R. Cruz, Los Angeles

Key Takeaways Dell's AI server orders reached $60.9 billion in fiscal Q2 2027, with backlog climbing to $95 billion.Dell expects fiscal 2027 sales and EPS growth of 72.4% and 153.3%, respectively.Everpure's revenues grew 38%, but negative free cash flow and falling earnings estimates add risks. Dell Technologies (DELL - Free Report) and Everpure (P - Free Report) , formerly known as Pure Storage, are major competitors in the enterprise data storage and management market. Both companies are expanding their capabilities to address growing demand for AI-ready infrastructure, high-performance flash storage and hybrid cloud solutions.

Dell is strengthening its storage portfolio through innovations in PowerStore, PowerScale and PowerMax, while Everpure is advancing its unified storage and data management platform through its Enterprise Data Cloud architecture. As enterprises modernize data centers, deploy AI workloads and prioritize efficient data management, both companies are positioned to benefit from increasing infrastructure investments.

The Case for PEverpure's expanding enterprise footprint remains central to its growth strategy. In second-quarter fiscal 2027, revenues increased 38% year over year to approximately $1.2 billion, supported by strong demand across products, geographies and customer segments.

Product revenues advanced 54% to $687 million, reflecting favorable pricing, stronger demand for high-performance configurations and larger customer transactions. Operating profit surged 77% to $230 million, demonstrating improving operating leverage.

The subscription business offers another compelling opportunity. Subscription services revenues rose 20% to $499 million, representing 42% of total revenues. Annual recurring revenues exceeded $2 billion, while remaining performance obligations climbed 44% to more than $4 billion.

Evergreen//One, the company's consumption-based storage offering, continues to attract enterprises seeking predictable costs and infrastructure flexibility. Its annualized total contract value run rate exceeded $1 billion, strengthening future revenue visibility.

Everpure is increasingly benefiting from growing enterprise investment in AI-ready data infrastructure. Its FlashBlade platforms support demanding AI workloads, while Enterprise Data Cloud and Data Intelligence solutions help organizations consolidate, manage and utilize fragmented information.

The company has also secured a supply agreement with a second top-five hyperscaler, validating its DirectFlash technology. This agreement is expected to contribute meaningfully to revenues beginning in fiscal 2028.

Reflecting strong demand, management increased fiscal 2027 revenue guidance to $5.03-$5.07 billion and operating profit expectations to $940-$960 million. These upward revisions reinforce confidence in continued business expansion.

Despite impressive fundamentals, Everpure faces several risks. Increasing semiconductor and NAND component costs could pressure profitability, while aggressive competition may restrict pricing flexibility.

Second-quarter operating cash flow was $136 million, mainly due to strategic inventory purchases. Free cash flow was negative $238 million, highlighting working-capital pressures associated with rapid expansion. Although management anticipates a cash flow recovery, execution remains important.

The Case for DELLDell continues to experience AI server demand outpacing supply as customers accelerate deployments across neocloud, sovereign and enterprise environments. In the second quarter of fiscal 2027, AI orders totaled $60.9 billion, bringing trailing-12-month bookings to $131.7 billion, while backlog reached $95 billion. Management emphasized that most backlog orders are noncancelable following rigorous customer credit, financing, technical design and data-center readiness assessments, providing greater shipment visibility. The opportunity pipeline remains several times larger than backlog, while enterprise AI customers increased more than 60% over six months to exceed 6,500.

Demand is also expanding into inference, security and resiliency applications, alongside strengthening traditional server requirements. Dell maintains its fiscal 2027 AI server revenue outlook of approximately $74 billion. Although supply constraints persist, substantial backlog, a growing customer base and expanding applications reinforce Dell's multiyear growth prospects.

Dell's integrated infrastructure capabilities, spanning servers, networking, storage and data management, position it to capitalize on increasingly complex enterprise AI deployments. Management highlighted its engineering expertise and global supply-chain capabilities, which enable large-scale deployments four to six weeks faster in terms of time-to-token, with systems achieving 99.9% uptime after installation. Growing AI and inference workloads are also increasing storage requirements, creating opportunities for higher-margin revenues.

Dell IP storage registered its sixth consecutive quarter of demand growth at nearly twice the market rate in the second quarter of fiscal 2027. PowerStore achieved its tenth consecutive quarter of double-digit growth, while PowerScale and ObjectScale extended their growth streaks to five and four quarters, respectively. Management projects approximately $2.5 billion in additional storage revenues for fiscal 2027, with double-digit annual growth expected. A richer mix of proprietary storage products, software and services should support margin expansion and diversify Dell's growth drivers beyond AI servers.

How Do Zacks Estimates Compare for P & DELL?The Zacks Consensus Estimate for P’s fiscal 2027 sales and EPS indicates year-over-year growth of 38% and 41.6%, respectively. EPS estimates have been trending downwards over the past 60 days.

                                                                   Image Source: Zacks Investment Research

The Zacks Consensus Estimate for DELL’s fiscal 2027 sales and EPS indicates year-over-year growth of 72.4% and 153.3%, respectively. EPS estimates have been trending upwards over the past 60 days.

                                                               Image Source: Zacks Investment Research

DELL’s Valuation More Attractive Than PWhile DELL has a forward 12-month P/E of 16.93X versus its median of 16.80X, suggesting that the stock could be slightly overvalued relative to its historical range, P trades at a forward 12-month P/E of 35.36X, below its 12-month median of 83.61X.

DELL Emerges as the Better BuyDell appears to be a more compelling investment choice than Everpure, supported by robust AI server demand, an expanding storage portfolio and strong earnings growth prospects. Its substantial AI backlog, improving storage momentum and diversified infrastructure offerings provide greater revenue visibility. Moreover, Dell's attractive valuation relative to Everpure strengthens its investment appeal. While Everpure benefits from strong subscription growth and AI-driven storage demand, its premium valuation, cash flow pressures and downward earnings estimate revisions warrant caution.

Dell's upward earnings estimate revisions and Zacks Rank #1 (Strong Buy) compared with Everpure's Zacks Rank #3 (Hold), make DELL the better buy currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Image: Shutterstock

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An updated edition of the Sept. 4, 2026, article.

Founders often play a pivotal role in shaping the strategic direction, corporate culture and long-term growth prospects of the businesses they establish. Their deep-rooted commitment and entrepreneurial vision often encourage them to embrace calculated risks, navigate challenges and explore opportunities that conventional management teams might overlook. As their leadership philosophies become embedded in business operations, founder-led companies can develop distinct competitive advantages that support sustainable growth. Currently, approximately 11% of large-cap U.S. companies are founder-led.

Despite accounting for less than 5% of the S&P 500, founder-led businesses wield considerable influence over the broader market. Visionary entrepreneurs such as Elon Musk, Warren Buffett, Steve Jobs, Jeff Bezos, Mark Zuckerberg and Bill Gates have reshaped industries and built globally recognized enterprises. Companies such as NVIDIA (NVDA - Free Report) , Amazon, Meta Platforms, Tesla, Alphabet and Netflix demonstrate the lasting impact of entrepreneurial leadership and innovation. Together, these businesses represent nearly 15% of the S&P 500's market capitalization, with technology companies accounting for a significant portion.

Founder-driven businesses often emerge from innovative concepts designed to capitalize on technological advancements and evolving consumer needs. During their formative years, entrepreneurs frequently encounter investor skepticism and financing challenges, prompting them to rely on personal resources before securing external funding. As these enterprises mature, founders often retain substantial ownership stakes, aligning their financial interests with those of shareholders and encouraging a long-term approach to value creation.

However, founder-led companies also face certain challenges. Founders may be reluctant to delegate responsibilities or relinquish control over key decisions, potentially limiting operational flexibility and organizational expansion. While their direct involvement can preserve the company's original vision, excessive dependence on founder leadership may restrict access to specialized expertise and hinder scalability. Nevertheless, founder-led businesses have historically demonstrated impressive investment performance. According to a Motley Fool report, publicly traded companies managed by their founders delivered average annual returns of 25% over the past decade, outperforming the S&P 500's 14% return during the same period.

Our Founder-Run Companies Screen makes it easy to identify high-potential stocks. Currently, stocks like NVIDIA Corporation, Dell Technologies (DELL - Free Report) , Shopify (SHOP - Free Report) , Salesforce (CRM - Free Report) and BlackRock Inc. (BLK - Free Report) look appealing.

Ready to uncover more transformative thematic investment ideas? Explore 37 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.

5 Founder-Run Companies to Add to Your PortfolioNVIDIA, with a market capitalization of approximately $5.2 trillion, is a global leader in visual computing and the pioneer of the graphics processing unit (GPU). NVIDIA, once best known for its dominance in PC graphics, has successfully expanded into artificial intelligence-driven technologies powering high-performance computing, gaming, and immersive virtual environments.

NVIDIA CEO Jensen Huang believes accelerated computing and generative AI are transforming industries worldwide, creating significant growth opportunities beyond the technology sector. The company has capitalized on this shift to establish multiple billion-dollar businesses across gaming, healthcare, automotive and robotics. NVIDIA continues to witness robust demand for accelerated computing as hyperscalers, AI cloud providers, enterprises and sovereign customers invest in building AI factories. While Blackwell Ultra is driving near-term growth, the Vera Rubin platform is expected to expand NVIDIA’s capabilities across GPUs, CPUs, networking and software.

NVIDIA’s data center business remains a major growth catalyst, benefiting from the rapid adoption of cloud computing and AI infrastructure. Leading cloud service providers, including Amazon, Microsoft and Alphabet, are aggressively expanding their data center capacities to support growing AI workloads. These investments are fueling sustained demand for NVIDIA’s advanced GPUs and accelerated computing solutions, strengthening its position in the AI infrastructure market.

NVDA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Dell Technologies, with a market capitalization of approximately $307.6 billion, is a global leader in servers, storage systems, and personal computers. Founded by Michael Dell, the company is well-positioned to benefit from renewed demand tied to the ongoing PC refresh cycle.

Dell Technologies provides enterprise customers with comprehensive infrastructure solutions across on-premise, cloud and edge environments. Its advanced storage solutions, including PowerProtect Data Domain and PowerScale, integrate AI-powered ransomware detection to strengthen cybersecurity and operational resilience. The company is also capitalizing on growing demand for AI-optimized servers and data center infrastructure as enterprises increasingly invest in AI training and inference capabilities.

This Zacks Rank #1 company continues to benefit from robust AI infrastructure spending as enterprises expand capacity and upgrade data centers. Its diversified portfolio, spanning AI servers, traditional computing, storage and commercial PCs, creates multiple growth opportunities and supports market share gains. Dell’s expanding AI server portfolio, backed by strategic collaborations with NVIDIA and AMD, further reinforces its competitive position in the rapidly evolving AI infrastructure market. Strong cash flow generation and prudent capital allocation underscore its solid financial health and long-term growth prospects.

Management raised fiscal 2027 revenue outlook by $25 billion to $192 billion, plus or minus $2 billion, and lifted non-GAAP earnings guidance to $25.50 per share, plus or minus 25 cents.

Shopify, with a market capitalization of roughly $218.3 billion, is a leading global commerce platform that helps in starting, scaling, marketing, and running a business of any size. Its platform and services are engineered for simplicity and reliability, while delivering a better shopping experience for customers everywhere.

Founded in 2006 by Tobias Lutke, Daniel Weinand and Scott Lake, Shopify has millions of merchants from more than 175 countries. Shopify’s growth case remains supported by broad merchant gains, deeper payments adoption and expansion across online, offline and B2B channels. AI tools are becoming a larger part of merchant discovery and operations, while Catalog, Sidekick and agentic integrations extend Shopify into emerging commerce surfaces. Shopify is using its commerce data and infrastructure to improve discovery, conversion and merchant productivity.

Shopify continues to add merchants while expanding the ways they sell and get paid. It is widening the surfaces where merchants can be discovered and transact while keeping product data, checkout and payments connected to its platform. Shopify also added an agentic section in Admin so merchants can manage AI channels and track performance from one interface. It supports builders through connectors to ChatGPT, Claude, Perplexity, Replit and other tools.

Merchant expansion, AI-led commerce, international localization, broader distribution and disciplined cash generation support this Zacks Rank #1 company’s long-term growth and operating leverage potential.

Salesforce, with a market capitalization of roughly $190.4 billion, is the global leader in customer relationship management software and a major force in the Software-as-a-Service (SaaS) enterprise applications market. Salesforce enables businesses across industries to enhance customer engagement through its advanced CRM, artificial intelligence, data analytics and cloud-based solutions. The company is expanding beyond traditional CRM into AI-driven automation, data integration and workplace collaboration, with its Agentforce platform gaining significant momentum.

Founded in 1999 by Marc Benioff, Parker Harris, Dave Moellenhoff and Frank Dominguez, Salesforce has established a dominant position in the global CRM market. Its leadership as the world's top CRM provider for 11 consecutive years highlights sustained demand for its cloud offerings and strong competitive advantages.

This Zacks Rank #2 company continues to benefit from accelerating enterprise digital transformation and growing adoption of generative AI solutions. Salesforce is strengthening its AI capabilities through continuous innovation, strategic acquisitions and partnerships. Collaborations with Amazon and Alphabet are supporting its global cloud expansion, while investments in emerging technologies and start-ups are enhancing its product portfolio. These initiatives are expected to reinforce its CRM leadership, drive revenue growth and strengthen its long-term market position.

BlackRock, with a market capitalization of roughly $188.1 billion, offers products that span the risk spectrum, including active, enhanced and index strategies through a variety of structures that include separate accounts, mutual funds, iShares, ETFs and other pooled investment vehicles.

Founded in 1988 by eight co-founders, it has Larry Fink serving as chairman and CEO.  BlackRock, one of the world’s leading asset managers, had $15.49 trillion in assets under management (AUM) as of Sept. 30, 2026. Its substantial AUM base, diversified product offerings, strategic acquisitions and expanding private markets capabilities position it well for sustained growth.

This Zacks Rank #2 company’s iShares ETF franchise remains a key growth catalyst, benefiting from strong market positioning, scale advantages and rising demand for passive investment products. Continued investments in ETF offerings and increased focus on active equity strategies are expected to drive AUM growth and market share gains. BlackRock is also strengthening its presence in higher-margin alternative investments, including infrastructure, private credit and energy transition assets. Its expanding private markets platform offers significant earnings potential, supported by a $400 billion fundraising target through 2030.

Strategic acquisitions of GIP, HPS and Preqin further enhance BlackRock’s capabilities across private markets, data and technology. These initiatives, alongside growth in ETFs, active equities and alternatives, are expected to bolster revenues, diversify earnings streams and reinforce its competitive position.

Published in finance semiconductor

The Zacks Transportation - Shipping industry is benefiting from strategic diversification initiatives and an increasing shift toward digitalization aimed at improving operational efficiency. The industry is also witnessing positive momentum from a stronger focus on environmental compliance and the growing adoption of alternative fuels.

Agreed that the Iran war and the resultant high fuel costs are a deterrent; shipping stocks have most of the crisis actually through factors like a spike in ocean freight rates and artificial capacity contraction through rerouting. As a result, betting on shipping stocks such as International Seaways (INSW - Free Report) , ZIM Integrated Shipping Services (ZIM - Free Report) and KNOT Offshore Partners (KNOP - Free Report) appears to be a prudent move.

Industry Overview The companies belonging to the Zacks Transportation - Shipping industry, which is cyclical in nature, offer liquefied natural gas and crude oil marine transportation services under long-term, fixed-rate contracts with energy and utility bigwigs. Most participants focus on the seaborne transportation of crude oil and other oil products globally. The industry also includes players that own, operate and manage liquefied natural gas carriers. Some participants are owners and operators of containerships for charter. The change in the e-commerce landscape implies that shippers are relying more on third-party logistics providers. The well-being of the industry participants is directly proportional to the health of the economy. The ongoing geopolitical tensions are hurting the industry.

3 Shipping Industry Trends in Focus Digitalization and AI Enhance Operating Efficiency: Digitalization and artificial intelligence are transforming the shipping industry by improving operational efficiency and optimizing supply-chain management. AI-powered analytics and machine learning tools are enabling more accurate demand forecasting, better route planning and improved fuel-efficiency management, helping shipping companies reduce costs while supporting sustainability goals.

At the same time, IoT-enabled sensors and real-time cargo tracking are improving shipment visibility, reducing delays and allowing operators to identify potential disruptions before they escalate. Automation across ports and vessels is streamlining cargo handling and documentation, shortening turnaround times and lowering the risk of manual errors. In addition, AI-powered predictive maintenance solutions are helping companies reduce equipment downtime, extend vessel lifespans and improve fleet reliability.

Green Transition Creates Long-Term Opportunities:The shipping industry's accelerating shift toward decarbonization continues to create long-term growth opportunities. Rising adoption of alternative fuels such as LNG, methanol, ammonia and biofuels is helping operators reduce emissions while complying with increasingly stringent environmental regulations.

At the same time, investments in fuel-efficient vessel designs, advanced hull coatings and next-generation propulsion systems are lowering operating costs and improving fleet efficiency. The industry's sustainability initiatives are also enhancing access to green financing and strengthening relationships with customers seeking lower-carbon transportation solutions. Additionally, greater collaboration among shipbuilders, ports and technology providers is supporting the development of the infrastructure needed for cleaner shipping and positioning the industry to navigate evolving regulatory and market requirements.

Brightening Freight Scenario: Highlighting the brightening freight demand scenario, the Cass Freight Shipments Index improved 2.3% month on month in September 2026. This measure has improved month on month in five of the past seven months, which confirms the improving scenario. Additionally, the measure rose 1.9% year over year, marking its second consecutive annual increase following a three-and-a-half-year contraction, the longest such decline on record. This is a huge positive for shipping stocks.

Moreover, ever since the tensions between the United States and Iran escalated, ocean freight rates have been on the rise. Also, the avoidance of the Persian Gulf and Red Sea has increased transit times, absorbing vessel capacity and, in turn, drastically reducing overcapacity problems that had long plagued the industry.

Zacks Industry Rank Indicates Upbeat Prospects The Zacks Transportation - Shipping industry lies within the broader Zacks  Transportation sector. The industry currently carries a Zacks Industry Rank #49, which places it in the top 20% of 247 Zacks industries.

The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth. As a matter of fact, the industry’s earnings estimate for 2026 has increased more than 100% since April 2026.

Before we present a few stocks that you may want to add to your portfolio, let’s look at the industry’s recent stock-market performance and its valuation picture.

Industry Outperforms Sector and S&P 500 The Zacks Transportation - Shipping industry has surpassed the Zacks S&P 500 composite index as well as the broader sector over the past year.

Over this period, the industry has surged in excess of 69% compared with the S&P 500 Index’s northward movement of 13.6%. The broader sector has moved 17.4% north in the same timeframe.

One-Year Price PerformanceIndustry's Current Valuation Based on the forward 12-month price-to-sales (P/S- F12M), a commonly used multiple for valuing shipping stocks, the industry is currently trading at 2.76X, compared with the S&P 500’s 4.57X. It is above the sector’s P/S (F12) reading of 1.49X.

Over the past five years, the industry has traded as high as 2.98X, as low as 2.13X and at the median of 2.61X.

P/S Ratio (Forward 12-Month)

3 Transportation-Shipping Stocks to Buy Now International Seaways is benefiting from the increasing demand for tanker tonnage amid instability in the Strait of Hormuz, which is lengthening shipping routes. The tanker sector is experiencing strong rates, a further tailwind for INSW.  

Efforts to modernize its fleet also bode well for International Seaways. INSW currently flaunts a Zacks Rank #1 (Strong Buy). The shipping company’s earnings outpaced the Zacks Consensus Estimate in each of the past four quarters. The average beat was 33.9%.

  You can see  the complete list of today’s Zacks #1 Rank stocks here   

Price and Consensus: INSW

ZIM Integrated benefits from the recovery in freight rates, focus on niche markets and a shareholder-friendly approach. The company's investments in digitalization and innovative technologies enhance operational efficiency, positioning it to benefit from growing demand for sustainable shipping solutions.

ZIM, currently sporting a Zacks Rank #1, has seen the Zacks Consensus Estimate for 2026 earnings being revised more than 181% upward over the past 60 days. Shares of the shipping company have risen roughly 40% year to date.

Price and Consensus: ZIM

KNOT Offshore is engaged in owning, acquiring and operating shuttle tankers designed to transport crude oil and condensates from offshore oil field installations to onshore terminals and refineries.

The stock currently carries a Zacks Rank #2 (Buy). KNOT Offshore’s earnings surpassed the Zacks Consensus Estimate in three of the past four quarters, missing in one. The average beat was 165%. Shares of KNOP have gained roughly 12% over the past year.

Price and Consensus: KNOP

Key Takeaways D.R. Horton's Q4 earnings fell 12.2% to $2.67 per share, while revenues beat estimates at $9.37 billion.DHI's net sales orders fell 7%, as affordability concerns and rising mortgage rates weighed on buyer demand.DHI projects fiscal 2027 revenues of $30-$32 billion, with elevated sales incentives expected to persist.
D.R. Horton, Inc. (DHI - Free Report) reported mixed fourth-quarter fiscal 2026 results, with earnings missing the Zacks Consensus Estimate but revenues surpassing the same. Results reflected persistent housing affordability challenges, elevated sales incentives, softer homebuyer demand and inventory impairment charges in the rental business.

Rising mortgage rates and cautious consumer sentiment pressured new home orders, while lower homebuilding profitability and rental-related charges weighed on overall earnings.

Shares of this homebuilder lost almost 3% following its earnings release.

DHI's Q4 Earnings & Revenue DiscussionD.R. Horton reported earnings of $2.67 per share for the fourth quarter of fiscal 2026, missing the Zacks Consensus Estimate of $3.03 by 11.9%. The bottom line declined 12.2% from $3.04 in the year-ago quarter.

Consolidated revenues (Homebuilding, Forestar, Rental and Financial Services) totaled $9.37 billion, exceeding the consensus estimate of $9.04 billion by 3.6%. However, revenues declined 3.2% from $9.68 billion reported a year ago.

Net income attributable to D.R. Horton decreased 18.1% year over year to $741.8 million from $905.3 million. Consolidated pre-tax income declined 15.8% to $1.01 billion from $1.20 billion, while the pre-tax profit margin contracted to 10.8% from approximately 12.4% a year ago.

Results included $91.4 million of inventory impairment charges related to nine multifamily rental projects.

D.R. Horton's Homebuilding Business Faces Demand PressureHomebuilding revenues declined 2% year over year to approximately $8.4 billion, while home closings decreased 2% to 22,915 units. Home sales revenues totaled $8.38 billion compared with $8.54 billion in the prior-year quarter.

Homebuilding pre-tax income fell 11% year over year to $891 million from approximately $1 billion, while the pre-tax profit margin contracted to 10.6% from approximately 11.7% a year ago. The home sales gross margin contracted 50 basis points (bps) year over year to 19.5% from 20%, reflecting continued pressure on profitability amid challenging housing market conditions.

Net sales orders decreased 7% year over year to 18,619 homes, while their dollar value declined 9% to $6.6 billion. The cancellation rate increased to 23% from 20% a year ago, highlighting persistent affordability constraints and cautious buyer sentiment.

Average active selling communities increased 10% year over year, suggesting that expanded community availability was insufficient to offset softer demand.

At fiscal year-end, D.R. Horton had 28,200 homes in inventory, including 17,700 unsold homes. Of these, 8,800 were completed, including 600 that had remained completed for more than six months.

DHI's Non-Homebuilding Segments Show Mixed PerformanceThe Rental segment generated revenues of $647.1 million but recorded a pre-tax loss of $25.3 million, including $91.4 million of inventory impairment charges. The business sold 509 single-family rental homes for $134.3 million and 2,182 multifamily rental units for $512.8 million.

Forestar generated revenues of $580.8 million from the sale of 5,004 residential lots. The segment reported pre-tax income of $78.6 million, translating into a pre-tax profit margin of 13.5%.

The Financial Services segment contributed $219.2 million in revenues and $78.2 million in pre-tax income, achieving a pre-tax profit margin of 35.7%. The segment continued to support D.R. Horton's integrated homebuilding business through mortgage financing and related services.

DHI's Fiscal 2026 Performance Reflects Housing Market WeaknessD.R. Horton reported earnings per share of $10.11 for fiscal 2026, down 12.6% from $11.57 in fiscal 2025. Total revenues declined 3.5% year over year to $33.04 billion from $34.25 billion. Homebuilding deliveries decreased 0.8% to 84,202 homes from 84,863 homes a year ago. Meanwhile, the home sales gross margin contracted 130 basis points to 20.2% from 21.5%, reflecting continued pricing pressure and elevated sales incentives amid challenging housing market conditions.

D.R. Horton's Liquidity and Shareholder ReturnsD.R. Horton ended fiscal 2026 with total liquidity of $7.2 billion and a debt-to-total capital ratio of 20.8%, highlighting its financial flexibility amid uncertain housing market conditions.

Cash and cash equivalents totaled $2.06 billion as of Sept. 30, 2026, compared with $2.99 billion a year ago. Total inventories were $25.07 billion compared with $25.29 billion at the end of fiscal 2025.

Cash provided by operating activities totaled $3.5 billion in fiscal 2026.

During the fiscal fourth quarter, the company repurchased 9.4 million shares for $1.4 billion and paid $125 million in cash dividends. For fiscal 2026, total repurchases amounted to $3.6 billion, while dividend payments totaled $513.3 million.

Shares outstanding declined 8% year over year to 271.4 million. The company had $4.7 billion remaining under its share repurchase authorization as of Sept. 30, 2026.

D.R. Horton also increased its quarterly dividend by 11% to 50 cents per share, payable on Nov. 19, 2026, to shareholders of record as of Nov. 12.

DHI Provides Fiscal 2027 GuidanceD.R. Horton expects consolidated revenues of $30-$32 billion for fiscal 2027, implying a decline of approximately 3.2%-9.2% from fiscal 2026 revenues of $33.04 billion.

Homebuilding closings are projected to be between 79,000 and 84,000 homes compared with 84,202 homes closed during fiscal 2026.

Management anticipates an income tax rate of approximately 25.5% and operating cash flow of around $3.5 billion.

The company also expects to repurchase approximately $3 billion worth of shares and distribute about $500 million in dividends during fiscal 2027.

Management cautioned that housing market conditions became more challenging during the fourth quarter, with rising mortgage rates, affordability constraints and subdued consumer confidence pressuring demand. Consequently, sales incentives are expected to remain elevated throughout fiscal 2027, depending on market conditions.

Despite these challenges, D.R. Horton remains focused on adjusting pricing, incentives and construction starts across individual communities to balance inventory levels with demand, while leveraging its national scale, liquidity and disciplined capital allocation strategy to protect long-term profitability.

DHI’s Zacks Rank & Recent Homebuilding ReleasesD.R. Horton currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PulteGroup, Inc. (PHM - Free Report) reported weaker-than-expected third-quarter 2026 results, with quarterly earnings of $2.53 per share missing the Zacks Consensus Estimate of $2.63 by 3.8%. Earnings fell from $2.96 per share in the prior-year quarter. Total revenues (Homebuilding & Financial Services) of $3.97 billion lagged the consensus mark of $4.13 billion by 3.9% and decreased 9.8% from $4.40 billion in the year-ago period.

PulteGroup ended the quarter with a backlog of 10,298 homes, up 4.1% year over year. Management emphasized its strategy of balancing home pricing and sales pace while aligning production with demand conditions. Move-up and active-adult buyers accounted for more than 60% of the company's business, supporting its focus on maintaining profitability amid housing-market challenges.

KB Home (KBH - Free Report) reported third-quarter fiscal 2026 earnings of $1.05 per share, beating the Zacks Consensus Estimate of 88 cents by 19.3%. Earnings declined 34.8% from $1.61 per share in the year-ago quarter.

KBH’s total revenues of $1.30 billion surpassed the consensus mark of $1.29 billion by 0.4% but dropped 20% year over year. Results reflected lower deliveries and continued pricing pressure, partly offset by progress in the company’s Built to Order model. BTO homes represented 74% of deliveries, supporting sequential improvement in housing gross margin.

Lennar Corporation (LEN - Free Report) reported weaker-than-expected third-quarter fiscal 2026 (ended Aug. 31) results. Adjusted earnings of $1.23 per share missed the Zacks Consensus Estimate of $1.29 by 4.7% and fell 38.5% from $2.00 per share a year ago.

Lennar’s total revenues of $8.05 billion missed the consensus estimate of $8.33 billion by 3.4% and declined 8.6% year over year. Lower deliveries and home prices weighed on results amid affordability pressure. Inventory turn stood at 2.4 times.

Oshkosh Corporation (OSK) Q3 2026 Earnings Call October 29, 2026 9:30 AM EDT

Company Participants

Patrick Davidson - Senior Vice President of Investor Relations
John Pfeifer - President, CEO & Director
Matthew Field - Executive VP & Chief Financial Officer

Conference Call Participants

Stephen Volkmann - Jefferies LLC, Research Division
Mircea Dobre - Robert W. Baird & Co. Incorporated, Research Division
Jerry Revich - Wells Fargo Securities, LLC, Research Division
David Raso - Evercore ISI Institutional Equities, Research Division
Jamie Cook - Truist Securities, Inc., Research Division
Stefan Diaz - Morgan Stanley, Research Division
Tami Zakaria - JPMorgan Chase & Co, Research Division
Kyle Menges - Citigroup Inc., Research Division
Timothy Thein - Raymond James & Associates, Inc., Research Division
Lauren Sullivan - UBS Investment Bank, Research Division

Presentation

Operator

Greetings, and welcome to the Oshkosh Corporation 2026 Third Quarter Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Pat Davidson, Senior Vice President of Investor Relations. Thank you, sir. You may begin.

Patrick Davidson
Senior Vice President of Investor Relations

Good morning, and thanks for joining us. Earlier today, we published our third quarter 2026 results. A copy of that release is available on our website at oshkoshcorp.com. Today's call is being webcast and is accompanied by a slide presentation, which includes a reconciliation of GAAP to non-GAAP financial measures that we will use during this call and is also available on our website. The audio replay and slide presentation will be available on our website for approximately 12 months.

Please refer now to Slide 2 of that presentation. Our remarks that follow, including answers to your questions, contain statements that we believe to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks and other factors that could