Digital Realty Trust (DLR)
NYSE:DLR
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Digital Realty
(NYSE:DLR)
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Rating:69Neutral
Price Target:
$194.00
▲(6.60% Upside)
Action:ReiteratedDate:02/21/26
The score is driven primarily by improving financial performance (growth and a 2025 margin rebound, though tempered by cash-flow quality and modest ROE) and a constructive earnings outlook (positive 2026 guidance with strong bookings/backlog). Technicals add support via an established uptrend, while valuation is the main drag due to a high P/E despite a moderate dividend yield.
Positive Factors
Large Bookings & Backlog
A sizable, multi-year backlog gives durable revenue visibility and de-risks near-term cash flows, enabling more predictable commencements and financing of development projects. This supports disciplined capacity buildout and smoother FFO conversion as leases roll into revenue over 2026–2028.
Negative Factors
Rising Capital Intensity
Escalating development and recurring CapEx increases capital intensity, pressuring free cash flow conversion and raising funding needs. Sustained high capex limits near-term distributable cash and heightens execution risk if project timings or yields slip amid tighter labor and supply conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Large Bookings & Backlog
A sizable, multi-year backlog gives durable revenue visibility and de-risks near-term cash flows, enabling more predictable commencements and financing of development projects. This supports disciplined capacity buildout and smoother FFO conversion as leases roll into revenue over 2026–2028.
Read all positive factors
Digital Realty (DLR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$62.53B
Dividend Yield3.17%
Average Volume (3M)1.89M
Price to Earnings (P/E)40.6
Beta (1Y)0.70
Revenue Growth7.75%
EPS Growth216.77%
CountryUS
Employees3,936
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)0.24
Shares Outstanding343,615,450
10 Day Avg. Volume1,596,486
30 Day Avg. Volume1,885,633
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 Cap1.33
Enterprise Value/Revenue13.47
Enterprise Value/Gross Profit33.68
Enterprise Value/Ebitda22.03
Forecast
1Y Price Target
$197.06Price Target Upside8.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)1.93
Revenue Forecast (FY)$6.69B
Digital Realty Business Overview & Revenue Model
Company Description
Digital Realty supports the world's leading enterprises and service providers by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITALR, the company's global data center platform, provides customers...
How the Company Makes Money
Digital Realty generates revenue primarily through leasing data center space to customers, which includes both colocation and powered shell services. The company charges customers based on the amount of space they occupy and the power they consume...
Digital Realty Key Performance Indicators (KPIs)
Digital Realty Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call emphasized multiple clear operational and financial positives: record bookings and backlog, strong growth in core FFO (10% year-over-year), accelerating interconnection and zero-to-one MW product momentum (35% and 22% YoY upticks), robust development pipeline (> $10B at ~11.9% expected yield), healthy liquidity and private-fund commitments (~$3.225B LP commitments plus ~$15B dry powder), and constructive 2026 guidance (≈8% FFO per-share growth and >10% revenue/EBITDA growth expected). Offsetting items include a modest near-term interest expense headwind from debt repricing, rising capital intensity and recurring CapEx, tighter labor/supply-chain pressures, power/grid constraints and local regulatory/nimby risks, and limited immediate availability in top markets. Overall, the positives materially outweigh the challenges, with management articulating healthy visibility into commencements and strong demand across hyperscale and enterprise segments.Positive Updates
Record and Growing Earnings
Core FFO per share of $1.86 in Q4 and $7.39 for full-year 2025, representing 10% growth versus 2024; Q4 core FFO up 8% year-over-year. 2026 guidance set at $7.90–$8.00 (midpoint ≈ 8% YoY per-share growth).
Negative Updates
Higher Interest Expense Headwind from Debt Repricing
Raised €1.4 billion via dual-tranche Eurobond at higher coupons (3.755% & 4.25%) and redeemed €1.075 billion of lower-coupon notes, creating a ~160 bps spread that will cause a modest interest expense headwind starting in 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Record and Growing Earnings
Core FFO per share of $1.86 in Q4 and $7.39 for full-year 2025, representing 10% growth versus 2024; Q4 core FFO up 8% year-over-year. 2026 guidance set at $7.90–$8.00 (midpoint ≈ 8% YoY per-share growth).
Read all positive updates
Company Guidance
Digital Realty's 2026 guidance calls for core FFO of $7.90–$8.00 per share (midpoint ≈ +8% year‑over‑year), normalized and constant‑currency total revenue and adjusted EBITDA growth of >10%, same‑capital cash NOI growth of 4%–5% (constant currency), and cash renewal spreads of 6%–8%; power‑based occupancy is expected to improve another 50–100 basis points from approximately 89% at year‑end 2025. They forecast net CapEx (net of partner contributions) of $3.25–$3.75 billion with development yields staying in the double digits, plan $500 million–$1 billion of dispositions/JV capital, and pointed to supporting metrics including a nearly $1.4 billion total backlog ($817 million at DLR share, with $634 million slated to commence in 2026 and $152 million in 2027+), leverage around 4.9x, liquidity of ~ $7 billion, and roughly $15 billion of private‑capital “dry powder.”Digital Realty Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.11B | 5.55B | 5.48B | 4.69B | 4.43B |
| Gross Profit | 3.39B | 3.04B | 2.88B | 2.67B | 2.65B |
| EBITDA | 3.59B | 2.87B | 3.16B | 2.29B | 3.60B |
| Net Income | 1.31B | 602.49M | 948.84M | 377.68M | 1.71B |
Balance Sheet | |||||
| Total Assets | 49.41B | 45.28B | 44.11B | 41.48B | 36.37B |
| Cash, Cash Equivalents and Short-Term Investments | 3.45B | 3.87B | 1.63B | 141.77M | 142.70M |
| Total Debt | 24.18B | 18.01B | 18.97B | 18.07B | 14.96B |
| Total Liabilities | 24.56B | 22.11B | 23.12B | 21.86B | 17.85B |
| Stockholders Equity | 22.93B | 21.34B | 19.12B | 17.58B | 18.00B |
Cash Flow | |||||
| Free Cash Flow | 2.41B | -570.26M | -1.89B | -983.71M | -818.54M |
| Operating Cash Flow | 2.41B | 2.26B | 1.63B | 1.66B | 1.70B |
| Investing Cash Flow | -2.23B | -1.91B | -1.12B | -4.70B | -1.06B |
| Financing Cash Flow | -486.74M | 2.06B | 963.47M | 2.97B | -590.63M |
Digital Realty Technical Analysis
Positive
181.99
Price Trends
174.34
Positive
165.22
Positive
166.85
Positive
Market Momentum
1.47
Negative
60.76
Neutral
84.88
Negative
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 181.99 is above the 20-day moving average (MA) of 178.36, above the 50-day MA of 174.34, and above the 200-day MA of 166.85, indicating a bullish trend. The MACD of 1.47 indicates Negative momentum. The RSI at 60.76 is Neutral, neither overbought nor oversold. The STOCH value of 84.88 is Negative, 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $62.53B | 40.61 | 5.81% | 3.17% | 7.75% | 216.77% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
57 Neutral | $3.40B | 16.11 | 5.11% | 5.75% | 0.77% | 62.58% | |
56 Neutral | $5.40B | 7.05 | 15.43% | 2.24% | 2.41% | ― | |
54 Neutral | $7.65B | -5.83 | -8.57% | 10.90% | -0.76% | -250.60% | |
54 Neutral | $3.73B | 106.88 | 0.85% | 5.08% | 16.38% | 3.60% | |
50 Neutral | $9.04B | 38.78 | 5.34% | 5.26% | 2.54% | -155.17% |
* Real Estate Sector Average
DLR
Digital Realty
182.42
50.17
37.93%
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Digital Realty Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Digital Realty Maintains Capital Flexibility With New Shelf Filing
Positive
Feb 17, 2026
On February 17, 2026, Digital Realty Trust, Inc. and its operating partnership filed a new automatic shelf registration statement with the U.S. SEC, replacing a prior shelf that was set to expire in March 2026, thereby maintaining their ability to...
Business Operations and StrategyFinancial Disclosures
Digital Realty Releases Q4 2025 Results, Highlights IR Plans
Neutral
Feb 5, 2026
On February 5, 2026, Digital Realty released its financial results for the quarter ended December 31, 2025, and furnished investors with an earnings press release, a detailed financial supplement and other supporting materials via its website. The...
Executive/Board Changes
Digital Realty Elects Stephen Bolze as New Director
Neutral
Dec 15, 2025
On December 15, 2025, Digital Realty Trust, Inc. announced the election of Stephen R. Bolze as an independent director to its Board, effective January 1, 2026. Bolze, with over 30 years of experience in infrastructure and industrial management, pr...
Business Operations and StrategyPrivate Placements and Financing
Digital Realty Announces Redemption of Euro Notes
Positive
Dec 3, 2025
On December 3, 2025, Digital Realty announced that its subsidiary, Digital Euro Finco, LLC, will redeem the €1,075 million of its 2.500% Guaranteed Notes due 2026 on December 18, 2025. This redemption reflects Digital Realty’s strategi...
Private Placements and Financing
Digital Realty Issues €1.4 Billion in Euro Notes
Positive
Nov 21, 2025
On November 20, 2025, Digital Euro Finco, LLC, a subsidiary of Digital Realty Trust, Inc., issued €600 million of 3.750% Guaranteed Notes due 2033 and €800 million of 4.250% Guaranteed Notes due 2037. These Euro Notes, sold outside the...
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.