Digital Realty Trust (NYSE:DLR) Posts Earnings Results, Misses Expectations By $0.77 EPS

Digital Realty Trust (NYSE:DLR) released its earnings results on Thursday. The real estate investment trust reported $1.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.98 by ($0.77), FiscalAI reports. Digital Realty Trust had a net margin of 21.73% and a return on equity of 6.05%. The firm had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.66 billion. During the same period in the previous year, the company earned $1.87 earnings per share. Digital Realty Trust’s revenue was up 28.9% on a year-over-year basis. Digital Realty Trust updated its FY 2026 guidance to 8.150-8.200 EPS.

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

• Digital Realty posted record second-quarter results, with core FFO ex-promote of $2.13 per share, up 14% year over year, and raised full-year 2026 core FFO guidance again to $8.15-$8.20 per share.
• Leasing momentum was strong across the portfolio, highlighted by record $108 million of zero-to-1 MW plus interconnection bookings and record renewal spreads above 25%, underscoring pricing power in supply-constrained markets.
• The company ended the quarter with a record $1.9 billion backlog and said contracted commencements should drive growth into 2027 and 2028, giving management confidence in sustained double-digit FFO growth.
• Digital Realty continues to expand its hyperscale and development footprint, including new leases after quarter-end and projects such as Kansas City and Northern Virginia, while its development pipeline rose to 1.4 GW under construction and is 63% pre-leased.
• Management also highlighted strategic transactions, including the Columbia Capital acquisition and Blackstone hyperscale deal, which are expected to expand fee income, improve capital flexibility, and support future growth.

Digital Realty Trust Stock Performance

Digital Realty Trust stock traded up $26.25 during mid-day trading on Friday, hitting $205.59. The company had a trading volume of 5,924,658 shares, compared to its average volume of 2,409,698. The company has a market capitalization of $72.25 billion, a price-to-earnings ratio of 54.28, a P/E/G ratio of 4.86 and a beta of 1.03. Digital Realty Trust has a 12-month low of $146.23 and a 12-month high of $208.14. The company’s fifty day moving average is $184.35 and its 200-day moving average is $180.59. The company has a current ratio of 1.59, a quick ratio of 1.59 and a debt-to-equity ratio of 0.78.

Digital Realty Trust Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th were issued a $1.22 dividend. The ex-dividend date of this dividend was Monday, June 15th. This represents a $4.88 dividend on an annualized basis and a yield of 2.4%. Digital Realty Trust’s payout ratio is presently 128.76%.

Institutional Trading of Digital Realty Trust

A number of hedge funds have recently added to or reduced their stakes in the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Digital Realty Trust by 686.0% in the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,807,512 shares of the real estate investment trust’s stock worth $831,123,000 after acquiring an additional 4,195,862 shares in the last quarter. Viking Global Investors LP acquired a new stake in shares of Digital Realty Trust in the fourth quarter valued at about $233,301,000. Price T Rowe Associates Inc. MD increased its stake in shares of Digital Realty Trust by 78.8% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 3,190,797 shares of the real estate investment trust’s stock worth $493,650,000 after purchasing an additional 1,405,791 shares in the last quarter. Alyeska Investment Group L.P. increased its stake in shares of Digital Realty Trust by 581.0% during the third quarter. Alyeska Investment Group L.P. now owns 961,121 shares of the real estate investment trust’s stock worth $166,159,000 after purchasing an additional 819,982 shares in the last quarter. Finally, Resolution Capital Ltd raised its position in shares of Digital Realty Trust by 25.2% during the 2nd quarter. Resolution Capital Ltd now owns 2,967,618 shares of the real estate investment trust’s stock worth $517,345,000 after purchasing an additional 596,420 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 brokerages have recently weighed in on DLR. Mizuho increased their price objective on Digital Realty Trust from $180.00 to $217.00 and gave the company an “outperform” rating in a report on Thursday, April 23rd. KeyCorp reiterated a “sector weight” rating on shares of Digital Realty Trust in a research report on Friday. Barclays increased their price target on shares of Digital Realty Trust from $189.00 to $197.00 and gave the stock an “equal weight” rating in a report on Wednesday, July 1st. Evercore lifted their price objective on shares of Digital Realty Trust from $200.00 to $230.00 and gave the company an “outperform” rating in a research note on Tuesday, April 21st. Finally, Morgan Stanley upped their price objective on shares of Digital Realty Trust from $210.00 to $215.00 and gave the company an “equal weight” rating in a report on Friday, April 24th. One research analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $217.21.

Trending Headlines about Digital Realty Trust

Here are the key news stories impacting Digital Realty Trust this week:

• Positive Sentiment: Digital Realty reported second-quarter FFO of $2.13 per share, topping estimates, while revenue of $1.92 billion also beat expectations and rose 28.9% year over year. Article: Digital Realty Trust (DLR) Beats Q2 FFO and Revenue Estimates
• Positive Sentiment: The company raised full-year FFO guidance to $8.15-$8.20 and lifted revenue guidance to about $6.85 billion-$7.0 billion, signaling management confidence in ongoing leasing momentum. Article: Digital Realty raises annual FFO forecast on robust data center demand
• Positive Sentiment: Management said record backlog, strong bookings, and higher renewal rents are supporting growth, which should help future cash flow and earnings visibility. Article: DLR Q2 FFO Beats on Leasing Strength & Renewal Rent, ’26 View Raised
• Positive Sentiment: TD Cowen upgraded Digital Realty from hold to buy and set a $222 price target, reinforcing the bullish view that demand tied to AI infrastructure remains strong. Article: TD Cowen upgrade coverage
• Neutral Sentiment: The quarter included a mixed result on EPS, as reported earnings missed consensus even while revenue and FFO beat estimates, so investors may focus more on operating strength and guidance than the headline EPS miss.

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.