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Digital Realty
(NYSE:DLR)
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Rating:64Neutral
Price Target:
$213.00
â–²(6.99% Upside)
Action:Reiterated
Date:07/25/26
DLR’s score is primarily supported by solid operating performance (steady revenue growth and resilient net margins) and a positive earnings outlook with raised core FFO guidance and a record backlog. The biggest offset is valuation risk from an extremely high P/E, with additional caution from mixed technical momentum and historically volatile free cash flow/cash conversion.
Positive Factors
Steady recurring revenue growth
Digital Realty’s core business is long‑tenor leasing and interconnection, and revenues have grown materially over multiple years. Durable contracted rental streams and connectivity fees create predictable, recurring cash flows that support long‑term NOI and FFO stability across market cycles.
Negative Factors
Rising capital intensity
Higher and more front‑loaded development CapEx raises structural cash demands and lengthens conversion timelines. Persistent elevated investment needs increase reliance on asset recycling, private capital and equity programs, exposing recurring cash flows to financing and execution cycles over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady recurring revenue growth
Digital Realty’s core business is long‑tenor leasing and interconnection, and revenues have grown materially over multiple years. Durable contracted rental streams and connectivity fees create predictable, recurring cash flows that support long‑term NOI and FFO stability across market cycles.
Read all positive factors
Digital Realty Key Performance Indicators (KPIs)
Any
Data Center Buildings By Geography
Highlights the distribution of data center facilities across various regions, indicating strategic positioning and potential exposure to regional market trends and demands.
Highlights the distribution of data center facilities across various regions, indicating strategic positioning and potential exposure to regional market trends and demands.
Data provided by:
The Fly
The FlyDigital Realty (DLR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$69.63B
Dividend Yield2.53%
Average Volume (3M)3.75M
Price to Earnings (P/E)89.0
Beta (1Y)0.64
Revenue Growth18.74%
EPS Growth-45.63%
CountryUS
Employees4,282
SectorReal Estate
Sector Strength53
IndustryREIT - Specialty
Share Statistics
EPS (TTM)3.95
Shares Outstanding370,010,000
10 Day Avg. Volume3,457,778
30 Day Avg. Volume3,750,693
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)2.32
Price to Sales (P/S)8.69
P/FCF Ratio22.03
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$221.00Price Target Upside11.01% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering23
EPS Forecast (FY)2.58
Revenue Forecast (FY)$7.01B
Digital Realty Business Overview & Revenue Model
Company Description
Digital Realty Trust, Inc. owns, acquires, develops, and operates data centers through its operating partnership subsidiary, Digital Realty Trust, L.P. The company is focused on providing data center, colocation, and interconnection solutions for ...
How the Company Makes Money
Digital Realty primarily makes money by leasing data center space and providing data center-related services under customer contracts. The largest revenue stream is recurring rental revenue from customers who lease capacity (e.g., colocation cabin...
Digital Realty Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call was strongly positive on execution, growth and momentum: record core FFO (excluding promote), raised guidance, record bookings (particularly 0-1 MW and interconnection), record backlog, rapid expansion of the development pipeline, meaningful hyperscale signings after quarter end, and expanding private capital capabilities. Offsetting items are primarily one-time gains (insurance recovery and promote income), rising capital intensity and the episodic/lumpy nature of hyperscale leasing, plus local regulatory/market risks and near-term seasonality that may moderate Q3 results. Overall the positives around durable demand, pricing power, backlog and balance sheet flexibility materially outweigh the transitory and execution risks cited.Positive Updates
Core FFO Growth and Record Quarter
Core FFO excluding net promote income was $2.13 per share in Q2 2026, up 14% year-over-year; reported core FFO was $2.65 per share including $0.52/share of net promote income.
Negative Updates
One-Time Insurance Recovery and Promote Income
Q2 included a $113 million insurance recovery ($94 million net of tax) and ~$188 million of promote income (net of expenses, $0.52/share). These items are largely one-time and introduce volatility; promote income was not included in initial 2026 guidance.
Read all updates
Q2-2026 Updates
Positive
Negative
Core FFO Growth and Record Quarter
Core FFO excluding net promote income was $2.13 per share in Q2 2026, up 14% year-over-year; reported core FFO was $2.65 per share including $0.52/share of net promote income.
Read all positive updates
Company Guidance
Digital Realty raised 2026 core FFO per share guidance (excluding net promote) by $0.15/$0.10 to $8.15–$8.20 (midpoint implying ~10% constant‑currency growth) and said this supports extending double‑digit core FFO growth into 2027+, after delivering Q2 core FFO excl. promote of $2.13 (+14% YoY; $2.65 reported incl. $0.52 promote). Other guidance items include cash renewal spreads of 9–11% (up 250 bps), same‑capital cash NOI growth of 4.25–5.25% on a constant‑currency basis (up 25 bps), and increased CapEx net of partner contributions to $4.25–$4.75B (up $750M from last quarter) with an added $500M to dispositions/JV capital targets. Management cited a record backlog of $1.9B (100%) / $1.4B (DLR share) (~30% of in‑place rent), $635M of annualized rent slated to commence in H2‑2026 (45% in Q3, 55% in Q4), $480M in 2027 and $312M in 2028+, leverage at ~4.7x, roughly $6B of liquidity and over $12B of remaining hyperscale development capacity as the foundation for this outlook.Digital Realty Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.42B | 6.11B | 5.55B | 5.48B | 4.69B | 4.43B |
| Gross Profit | 1.61B | 3.39B | 3.04B | 2.88B | 2.67B | 2.65B |
| EBITDA | 3.93B | 3.59B | 2.87B | 3.16B | 2.29B | 3.60B |
| Net Income | 1.38B | 1.31B | 602.49M | 948.84M | 377.68M | 1.71B |
Balance Sheet | ||||||
| Total Assets | 48.86B | 49.41B | 45.28B | 44.11B | 41.48B | 36.37B |
| Cash, Cash Equivalents and Short-Term Investments | 2.43B | 3.45B | 3.87B | 1.63B | 141.77M | 142.70M |
| Total Debt | 19.22B | 24.18B | 18.01B | 18.97B | 18.07B | 14.96B |
| Total Liabilities | 23.46B | 24.56B | 22.11B | 23.12B | 21.86B | 17.85B |
| Stockholders Equity | 23.37B | 22.93B | 21.34B | 19.12B | 17.58B | 18.00B |
Cash Flow | ||||||
| Free Cash Flow | 1.15B | 2.41B | -570.26M | -1.89B | -983.71M | -818.54M |
| Operating Cash Flow | 2.55B | 2.41B | 2.26B | 1.63B | 1.66B | 1.70B |
| Investing Cash Flow | -2.66B | -2.23B | -1.91B | -1.12B | -4.70B | -1.06B |
| Financing Cash Flow | 313.31M | -486.74M | 2.06B | 963.47M | 2.97B | -590.63M |
Digital Realty Technical Analysis
Positive
199.08
Price Trends
184.70
Positive
186.04
Positive
174.21
Positive
Market Momentum
-0.43
Negative
68.66
Neutral
75.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLR, the sentiment is Positive. The current price of 199.08 is above the 20-day moving average (MA) of 180.76, above the 50-day MA of 184.70, and above the 200-day MA of 174.21, indicating a bullish trend. The MACD of -0.43 indicates Negative momentum. The RSI at 68.66 is Neutral, neither overbought nor oversold. The STOCH value of 75.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DLR.
Digital Realty Risk Analysis
Digital Realty disclosed 12 risk factors in its most recent earnings report. Digital Realty reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Digital Realty Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $138.49B | 32.69 | 7.94% | 2.82% | 7.35% | 21.58% | |
75 Outperform | $8.95B | 24.07 | 13.42% | 2.82% | 8.44% | 34.29% | |
67 Neutral | $8.63B | -21.16 | -4.75% | 4.44% | 0.58% | -234.18% | |
66 Neutral | $10.10B | -68.74 | -1.75% | 5.12% | 1.06% | 79.49% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $69.63B | 89.02 | 3.30% | 2.45% | 18.74% | -45.63% | |
57 Neutral | $4.21B | -37.24 | -3.77% | 6.42% | -1.06% | 7.64% |
* Real Estate Sector Average
DLR
Digital Realty
188.52
21.14
12.63%
PLD
Prologis
144.61
42.99
42.31%
FR
First Industrial Realty
65.84
19.52
42.13%
REXR
Rexford Industrial Realty
37.77
3.52
10.27%
COLD
Americold Realty
14.09
-0.55
-3.75%
LINE
Lineage, Inc.
42.37
2.38
5.95%
Digital Realty Corporate Events
Business Operations and StrategyFinancial Disclosures
Digital Realty Reports Second-Quarter 2026 Financial Results
Neutral
Jul 23, 2026
On July 23, 2026, Digital Realty announced its financial results for the quarter ended June 30, 2026 and released a detailed earnings press release and financial supplement via its website. The materials include key quarterly financial data, outlo...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Blackstone Reduces Digital Realty Stake in Share Offering
Neutral
Jul 1, 2026
Digital Realty has expanded its ownership in key data center assets by completing on June 30, 2026, the acquisition of all of Blackstone Inc.’s interests in the Digital Carver Dulles 9 and Digital Carver Brickyard joint ventures. This move i...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Digital Realty boosts hyperscale footprint with Virginia acquisitions
Positive
Jun 29, 2026
Digital Realty, the world’s largest cloud- and carrier-neutral data center platform, is deepening its focus on hyperscale infrastructure with a portfolio exceeding 300 sites across six continents and a customer base spanning cloud, enterpris...
Business Operations and StrategyM&A Transactions
Digital Realty Expands Growth with Major Strategic Acquisitions
Positive
Jun 22, 2026
On June 22, 2026, Digital Realty announced a series of transactions aimed at accelerating growth across hyperscale development, colocation and private capital activities. The company has acquired about 1,440 acres at Astra Enterprise Park near Kan...
Executive/Board ChangesShareholder Meetings
Digital Realty Shareholders Reaffirm Board, Reject Water Proposal
Neutral
Jun 1, 2026
At its Annual Meeting of Stockholders held on May 29, 2026, Digital Realty Trust, Inc. shareholders elected all ten nominated directors to serve until the 2027 annual meeting, including CEO Andrew P. Power, with vote counts indicating solid but va...
Business Operations and StrategyPrivate Placements and Financing
Digital Realty Launches New $7.5 Billion ATM Program
Positive
May 4, 2026
On May 4, 2026, Digital Realty Trust entered into a new at-the-market equity offering sales agreement allowing it to issue up to $7.5 billion of common stock, including through forward sale arrangements with a syndicate of major banks acting as ag...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.