Prologis Surges on Record Q4 Earnings, Strong 2026 Outlook
The logistics giant beat profit estimates by 99% and signaled robust rent growth, citing a 'record year for lease signings' as e-commerce demand fills warehouses.
Prologis Inc. (NYSE: PLD) shares gained after the logistics real estate behemoth reported blockbuster fourth-quarter results that widely surpassed analyst expectations, driven by relentless demand for warehouse space and soaring rental rates.
The world's largest owner of industrial properties announced earnings per share of $1.46, an astonishing 99.2% above the Wall Street consensus of $0.73. Revenue also impressed, coming in at $2.25 billion for the quarter, a 10.8% beat over the estimated $2.03 billion. The strong performance sent a clear signal that demand for logistics space remains robust despite broader economic uncertainties.
Investors reacted positively to the news, which was accompanied by an optimistic forecast for 2026. In its fourth-quarter 2025 earnings release, the company issued strong full-year 2026 guidance for Core Funds From Operations (FFO)—a key metric of profitability for real estate investment trusts—projecting a range of $6.00 to $6.20 per share. This confident outlook suggests management sees sustained momentum through the coming year.
"We had a record year for lease signings which translated into exceptional financial results," stated Hamid R. Moghadam, Chairman and CEO of Prologis, in the report. "The results reflect the quality of our portfolio and the strong momentum heading into 2026."
A critical driver of the company's outperformance was its significant pricing power. Prologis reported a net effective rent change of an impressive 43.8% on new and renewed leases during the year. This indicates that as older leases expire, the company is able to re-lease the space at dramatically higher rates, locking in future revenue growth.
The results come as the broader industrial real estate sector navigates a complex environment. After years of frenetic, pandemic-fueled growth, the market is maturing. However, structural tailwinds such as the continued expansion of e-commerce, companies' desires to hold more inventory onshore, and the modernization of supply chains continue to fuel demand for high-quality, well-located warehouse facilities. Prologis, with its global footprint, appears uniquely positioned to capitalize on these trends.
According to a recent industry analysis, new supply in the industrial sector is expected to be significantly constrained in 2026, which should further support rent growth for existing properties. Prologis's record 228 million square feet of lease signings in 2025, a figure highlighted in its report, demonstrates that tenant demand is more than sufficient to absorb available space.
Following the announcement, shares of Prologis saw a jump in pre-market trading, adding to gains that have positioned the stock near its 52-week high. Analysts have maintained a largely positive stance on the company, with an average target price around $135 per share, reflecting confidence in its ability to execute on its growth strategy. The company's market capitalization stands at over $123 billion, cementing its status as a bellwether for the global supply chain and the health of the industrial economy.