Digital Realty Trust (NYSE:DLR) Releases Quarterly Earnings Results, Misses Estimates By $0.77 EPS

25 Jul 2026, 08:57 by Renee Jackson · The Cerbat Gem

Digital Realty Trust (NYSE:DLR – Get Free Report) posted its quarterly earnings results on Thursday. The real estate investment trust reported $1.21 EPS for the quarter, missing the consensus estimate of $1.98 by ($0.77), FiscalAI reports. The business had revenue of $1.92 billion during the quarter, compared to analysts’ expectations of $1.66 billion. Digital Realty Trust had a net margin of 11.80% and a return on equity of 3.50%. Digital Realty Trust’s revenue for the quarter was up 28.9% compared to the same quarter last year. During the same period in the previous year, the company posted $1.87 earnings per share. 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

Shares of DLR opened at $198.63 on Friday. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.59 and a quick ratio of 1.59. Digital Realty Trust has a 12-month low of $146.23 and a 12-month high of $208.14. The stock has a market capitalization of $69.80 billion, a P/E ratio of 96.42, a P/E/G ratio of 4.88 and a beta of 1.03. The firm’s 50 day moving average is $184.56 and its 200-day moving average is $180.71.

Digital Realty Trust Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th were paid a dividend of $1.22 per share. This represents a $4.88 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend was Monday, June 15th. Digital Realty Trust’s dividend payout ratio (DPR) is presently 236.89%.

More Digital Realty Trust News

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

Positive Sentiment: Digital Realty reported Q2 results that showed strong leasing activity, a record backlog, and higher renewal rents, which helped the company beat FFO expectations and improve its 2026 outlook.
Positive Sentiment: The company raised FY 2026 adjusted FFO guidance to $8.15-$8.20 per share and lifted revenue guidance to $6.9 billion-$7.0 billion, signaling confidence in continued cloud and AI-driven demand.
Positive Sentiment: TD Cowen upgraded Digital Realty Trust to Buy from Hold and raised its price target to $222 from $192, citing stronger data center demand. Article Title
Positive Sentiment: JPMorgan also raised its price target on DLR to $235 from $230 and reiterated an Overweight rating, implying additional upside from current levels. Article Title
Neutral Sentiment: Despite the upbeat guidance, the company’s reported EPS of $1.21 came in well below Wall Street expectations, so investors are balancing the earnings miss against the stronger operating trends.

Institutional Investors Weigh In On Digital Realty Trust

Large investors have recently added to or reduced their stakes in the stock. Sunbelt Securities Inc. grew its position in 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 purchasing an additional 125 shares during the last quarter. Harvest Fund Management Co. Ltd increased its holdings in shares of Digital Realty Trust by 970.6% in the third quarter. Harvest Fund Management Co. Ltd now owns 182 shares of the real estate investment trust’s stock valued at $31,000 after purchasing an additional 165 shares in the last quarter. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Digital Realty Trust during the 3rd quarter worth approximately $34,000. Wiser Advisor Group LLC acquired a new position in shares of Digital Realty Trust during the 3rd quarter worth about $45,000. Finally, Prosperity Bancshares Inc acquired a new stake in shares of Digital Realty Trust during the fourth quarter worth about $56,000. Institutional investors own 99.71% of the company’s stock.

Analyst Ratings Changes

A number of analysts have recently commented on DLR shares. Wells Fargo & Company boosted their price objective on Digital Realty Trust from $195.00 to $220.00 and gave the company an “overweight” rating in a research report on Tuesday, April 21st. Deutsche Bank Aktiengesellschaft raised their price target on Digital Realty Trust from $196.00 to $220.00 and gave the stock a “buy” rating in a research report on Monday, May 18th. JPMorgan Chase & Co. raised their target price on shares of Digital Realty Trust from $230.00 to $235.00 and gave the stock an “overweight” rating in a research report on Friday. The Goldman Sachs Group reissued a “buy” rating and set a $215.00 price target on shares of Digital Realty Trust in a report on Friday, April 24th. Finally, Barclays boosted their price objective on shares of Digital Realty Trust from $189.00 to $197.00 and gave the stock an “equal weight” rating in a research report on Wednesday, July 1st. One analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $217.38.

Read Our Latest Stock Analysis on DLR

About Digital Realty Trust

(Get Free Report)

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.