Revenue Growth Driven by Continued Colocation Demand
Total revenue reached $2.44B in Q1 FY2026, up 9.8% YoY from $2.23B, reflecting sustained demand for data center colocation and interconnection services globally as enterprises and hyperscalers expand their digital infrastructure footprints.
Operating Margin Expansion of ~300 Basis Points
Operating income grew 26.0% YoY to $577M, pushing operating margin from 20.6% to 23.6%, suggesting improved operating leverage and cost discipline relative to revenue growth despite a 9.4% rise in cost of revenue.
Aggressive Capital Deployment Driving Asset Base Expansion
Total assets grew 13.4% YoY to $40.9B, while investing cash outflows deepened to -$1.46B from -$964M, indicating continued heavy investment in new data center capacity and potential acquisitions to support future growth.