AI Takeaway
PSA delivered solid Q1 FY2026 results with revenue up 2.9% YoY to $1.22B and net income surging 29.1% to $526.3M, driven by improved profitability despite modest top-line growth.
Revenue
$1.22B
++2.92% YoY
EPS (Basic)
$2.72
++33.33% YoY
Operating Income
$474.28M
++2.21% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
PSA grew total revenue by 2.9% YoY to $1.22B in Q1 FY2026 (from $1.18B in Q1 FY2025), reflecting steady demand for self-storage facilities and incremental rent increases across its portfolio.
Source: Source: 10-Q Income Statement
Net income jumped from $407.8M to $526.3M, a 29.1% increase, significantly outpacing revenue growth and suggesting meaningful non-operating gains or reduced expenses contributed to bottom-line expansion beyond operating performance.
Source: Source: 10-Q Income Statement
Operating margin edged down slightly from 39.2% to 38.9% YoY, indicating modest cost pressures relative to revenue growth, though the business continues to generate highly efficient operating income of $474.3M.
Source: Source: 10-Q Income Statement & Key Ratios
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Upgrade to unlockPSA's long-term debt increased 3.0% to $9.71B while stockholders' equity fell 3.6% to $9.22B, pushing the debt-to-equity ratio to 1.14x. This elevated leverage increases interest expense sensitivity and limits financial flexibility, particularly in a higher-for-longer interest rate environment.
Source: Source: 10-Q Balance Sheet
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Upgrade to unlockReported EPS of $2.71 versus the $2.41 analyst consensus — a +12.4% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.22B | $1.18B | +2.92% |
Operating Income | $474.28M | $464.01M | +2.21% |
Net Income | $526.27M | $407.79M | +29.05% |
EPS (Basic) | $2.72 | $2.04 | +33.33% |
EPS (Diluted) | $2.71 | $2.04 | +32.84% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $19.85B | $19.62B | +1.20% |
Total Liabilities | $10.53B | $9.95B | +5.89% |
Stockholders' Equity | $9.22B | $9.57B | -3.57% |
Cash & Equivalents | $134.61M | $287.18M | -53.13% |
Long-Term Debt | $9.71B | $9.42B | +3.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $694.8M | $705.06M | -1.46% |
Investing Cash Flow | $-147.32M | $-286.52M | +48.58% |
Financing Cash Flow | $-730.96M | $-578.78M | -26.29% |
D&A | $290.72M | $282.71M | +2.83% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 38.9% | 39.2% | -0.27% |
Net Margin | 43.2% | — | — |
ROE | 5.7% | — | — |
ROA | 2.7% | — | — |
Debt to Equity | $1.142 | — | — |
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PSA reported Q1 FY2026 revenue of $1.22B, up 2.9% YoY, and net income of $526.3M, a strong 29.1% increase year-over-year. Basic EPS rose 33.3% to $2.72, reflecting both improved profitability and a lower share count.
PSA's net income grew 29.1% YoY to $526.3M while revenue only grew 2.9%, suggesting significant non-operating income contributions such as gains on real estate dispositions or equity earnings from unconsolidated entities. The net margin of 43.2% actually exceeded the operating margin of 38.9%, which is unusual and points to these below-the-line income items.
PSA maintains a strong operating profile with $694.8M in operating cash flow and a robust 38.9% operating margin, but its balance sheet shows increasing leverage with long-term debt rising to $9.71B and a debt-to-equity ratio of 1.14x. Cash balances declined sharply by 53.1% to $134.6M, which is worth monitoring for near-term liquidity.
Yes, PSA's revenue grew 2.9% YoY to $1.22B in Q1 FY2026, up from $1.18B in Q1 FY2025, reflecting steady demand for self-storage space and incremental rental rate improvements. While growth was modest, the company's high-margin business model translated this into meaningful earnings expansion.
Key risks include rising leverage with long-term debt at $9.71B and a debt-to-equity ratio of 1.14x, a sharp 53.1% decline in cash to $134.6M reducing the liquidity buffer, and slightly compressed operating margins suggesting cost pressures. Elevated financing outflows of $730.9M (up 26.3% YoY) also signal increasing capital return or debt service obligations that could strain cash flow if operating performance softens.