Digital Realty Trust (NYSE:DLR) Posts Earnings Results, Beats Estimates By $0.03 EPS

Digital Realty Trust (NYSE:DLR) released its earnings results on Thursday. The real estate investment trust reported $1.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.83 by $0.03, Zacks reports. Digital Realty Trust had a return on equity of 6.41% and a net margin of 23.67%.The firm had revenue of $1.63 billion during the quarter, compared to analysts’ expectations of $1.58 billion. During the same quarter last year, the business posted $1.73 earnings per share. The firm’s revenue was up 13.8% on a year-over-year basis. Digital Realty Trust updated its FY 2026 guidance to 7.900-8.000 EPS.

Here are the key takeaways from Digital Realty Trust’s conference call:

• Digital Realty delivered strong results with Q4 Core FFO of $1.86 and FY‑2025 Core FFO of $7.39, and guided 2026 Core FFO to $7.90–$8.00 (midpoint ~8% growth) with >10% normalized revenue and Adjusted EBITDA growth expected.
• Demand momentum remained robust—> $1 billion+ of annual bookings for the second consecutive year, a record backlog of nearly $1.4 billion (100% basis), and record 0–1 MW interconnection bookings (~$340M) with hyperscale leasing >$800M in 2025.
• The company is expanding its funding toolbox, closing an oversubscribed inaugural closed‑end fund (≈€3.225B LP equity to date) and citing roughly $15B of private capital dry powder to accelerate hyperscale development alongside the public balance sheet.
• Near‑term cost and financing pressures increased—CapEx guidance rose to $3.25B–$3.75B (net of partner contributions) and a dual‑tranche Eurobond raising creates a ~160 bps higher interest expense headwind beginning in Q1 2026, which could weigh on short‑term cash flow despite leverage remaining below target.

Digital Realty Trust Price Performance

NYSE DLR traded down $1.88 during trading hours on Thursday, reaching $164.91. The company’s stock had a trading volume of 2,358,542 shares, compared to its average volume of 2,038,262. The firm has a market capitalization of $56.65 billion, a price-to-earnings ratio of 42.61, a P/E/G ratio of 3.84 and a beta of 1.12. The company’s 50-day moving average is $158.23 and its two-hundred day moving average is $165.77. The company has a debt-to-equity ratio of 0.80, a current ratio of 2.02 and a quick ratio of 2.02. Digital Realty Trust has a 1-year low of $129.95 and a 1-year high of $182.48.

Insider Buying and Selling at Digital Realty Trust

In related news, Director Mary Hogan Preusse sold 4,166 shares of the business’s stock in a transaction that occurred on Monday, December 1st. The stock was sold at an average price of $157.42, for a total transaction of $655,811.72. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.13% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Digital Realty Trust

Several hedge funds and other institutional investors have recently modified their holdings of DLR. Scotia Capital Inc. increased its position in shares of Digital Realty Trust by 0.9% during the 3rd quarter. Scotia Capital Inc. now owns 7,379 shares of the real estate investment trust’s stock worth $1,276,000 after purchasing an additional 64 shares during the last quarter. L2 Asset Management LLC increased its position in shares of Digital Realty Trust by 4.7% during the third quarter. L2 Asset Management LLC now owns 1,581 shares of the real estate investment trust’s stock valued at $273,000 after acquiring an additional 71 shares during the last quarter. Equitable Holdings Inc. increased its position in shares of Digital Realty Trust by 0.3% during the second quarter. Equitable Holdings Inc. now owns 24,139 shares of the real estate investment trust’s stock valued at $4,208,000 after acquiring an additional 83 shares during the last quarter. Brooklyn Investment Group lifted its holdings in shares of Digital Realty Trust by 4.5% in the 3rd quarter. Brooklyn Investment Group now owns 2,218 shares of the real estate investment trust’s stock worth $383,000 after acquiring an additional 95 shares during the last quarter. Finally, Sunbelt Securities Inc. lifted its holdings in shares of Digital Realty Trust by 347.2% in the 3rd quarter. Sunbelt Securities Inc. now owns 161 shares of the real estate investment trust’s stock worth $28,000 after acquiring an additional 125 shares during the last quarter. 99.71% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the company. Truist Financial increased their target price on Digital Realty Trust from $199.00 to $200.00 and gave the company a “buy” rating in a research report on Wednesday, November 5th. TD Cowen restated a “hold” rating on shares of Digital Realty Trust in a research report on Friday, October 24th. Barclays upgraded Digital Realty Trust from an “underweight” rating to an “equal weight” rating and lifted their price target for the stock from $161.00 to $164.00 in a research report on Tuesday, January 13th. KeyCorp restated a “sector weight” rating on shares of Digital Realty Trust in a research report on Thursday, January 29th. Finally, Hsbc Global Res upgraded Digital Realty Trust from a “hold” rating to a “strong-buy” rating in a research report on Thursday, January 15th. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $193.22.

Digital Realty Trust Company Profile

Digital Realty Trust, Inc (NYSE: DLR) is a real estate investment trust that owns, acquires and operates carrier-neutral data centers and provides related colocation and interconnection solutions. The company focuses on large-scale, mission-critical facilities that support the physical infrastructure needs of cloud providers, enterprises, network operators and content companies. Digital Realty’s offerings are designed to enable secure, reliable and highly available IT infrastructure with an emphasis on power density, cooling, and physical security.

Digital Realty’s product set spans wholesale data center space, turnkey build-to-suit facilities, and retail colocation suites, complemented by interconnection services that allow customers to establish private and public connections to networks, cloud on-ramps and other ecosystem partners.