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Welltower tops Q2 2026 FFO estimates and raises guidance
Normalized funds from operations rose to $1.60 per diluted share, helped by 20.5% same-store NOI growth in its seniors housing portfolio.
Welltower Inc., a healthcare-focused REIT, reported Q2 2026 results that exceeded expectations on a normalized basis, while a GAAP earnings miss added contrast for investors assessing its valuation. On a GAAP basis, Welltower posted net income of 61 cents per diluted share, falling short of consensus by 5 cents. The company cited how GAAP can be a less useful measure for REITs, and instead emphasized normalized funds from operations, which came in at $1.60 per diluted share, up 25% year over year and above analysts' roughly $1.55 modeling.
Welltower also topped the revenue outlook, with Q2 revenue of $3.54 billion versus $3.36 billion expected. Revenue grew 39.1% from the prior-year quarter, and the report pointed to strength in its seniors housing operating portfolio, which showed same-store net operating income growth of more than 20% for 15 straight quarters.
In the second quarter, seniors housing same-store NOI rose 20.5%, supported by 330 basis points of average occupancy growth and 5.2% growth in revenue per occupied room, while expense growth stayed at 0.7%. The outlet also noted that Welltower raised guidance and its dividend, though the stock pulled back from earlier gains as investors weighed interest-rate and inflation risks against the shares trading near their 52-week high and at 121x earnings.