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Digital Realty
(NYSE:DLR)
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Rating:68Neutral
Price Target:
$201.00
▲(4.51% Upside)
Action:Reiterated
Date:10/07/26
DLR scores strongest on financial performance and earnings-call momentum: improving leverage, positive and growing TTM free cash flow, and raised core FFO guidance supported by record backlog and strong leasing/renewal spreads. The overall score is held back by an expensive P/E valuation and mixed technical momentum (negative MACD and price below the 50-day average), alongside financial statement watch-items such as weak TTM gross margin and uneven cash conversion.
Positive Factors
Record backlog supports recurring revenue growth
The record backlog and scheduled commencements provide substantial visibility into future rental revenue, reducing reliance on entirely new bookings over the next several quarters. This contracted pipeline supports occupancy growth, recurring cash flows, and continued expansion of the company’s data center platform.
Negative Factors
Higher capital intensity increases funding needs
The sharply higher capital program raises near-term cash requirements and makes growth more dependent on continued financing, dispositions, and private-capital participation. Although investment can create future rental income, elevated spending may constrain free cash flow and increase execution demands during the development cycle.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog supports recurring revenue growth
The record backlog and scheduled commencements provide substantial visibility into future rental revenue, reducing reliance on entirely new bookings over the next several quarters. This contracted pipeline supports occupancy growth, recurring cash flows, and continued expansion of the company’s data center platform.
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
$66.95B
Dividend Yield2.77%
Average Volume (3M)1.91M
Price to Earnings (P/E)81.1
Beta (1Y)0.65
Revenue Growth18.74%
EPS Growth-45.63%
CountryUS
Employees4,282
SectorReal Estate
Sector Strength53
IndustryREIT - Specialty
Share Statistics
EPS (TTM)2.17
Shares Outstanding370,998,720
10 Day Avg. Volume1,651,443
30 Day Avg. Volume1,912,554
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 Cap1.28
Enterprise Value/Revenue12.52
Enterprise Value/Gross Profit90.95
Enterprise Value/Ebitda25.15
Forecast
1Y Price Target
$222.74Price Target Upside15.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering26
EPS Forecast (FY)2.75
Revenue Forecast (FY)$7.12B
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 capacity to customers under contractual agreements, generating recurring rental and service revenue typical of a REIT model. Key revenue streams include: (1) Colocation and data center le...
Digital Realty Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 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
74
Positive
Balance Sheet
67
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.85B | 6.11B | 5.55B | 5.48B | 4.69B | 4.43B |
| Gross Profit | 942.77M | 3.39B | 3.04B | 2.88B | 2.67B | 2.65B |
| EBITDA | 3.41B | 3.59B | 2.87B | 3.16B | 2.29B | 3.60B |
| Net Income | 799.02M | 1.31B | 602.49M | 948.84M | 377.68M | 1.71B |
Balance Sheet | ||||||
| Total Assets | 54.52B | 49.41B | 45.28B | 44.11B | 41.48B | 36.37B |
| Cash, Cash Equivalents and Short-Term Investments | 1.86B | 3.45B | 3.87B | 1.63B | 141.77M | 142.70M |
| Total Debt | 18.25B | 24.18B | 18.01B | 18.97B | 18.07B | 14.96B |
| Total Liabilities | 24.97B | 24.56B | 22.11B | 23.12B | 21.86B | 17.85B |
| Stockholders Equity | 27.43B | 22.93B | 21.34B | 19.12B | 17.58B | 18.00B |
Cash Flow | ||||||
| Free Cash Flow | 1.37B | 2.41B | -570.26M | -1.89B | -983.71M | -818.54M |
| Operating Cash Flow | 2.97B | 2.41B | 2.26B | 1.63B | 1.66B | 1.70B |
| Investing Cash Flow | -5.74B | -2.23B | -1.91B | -1.12B | -4.70B | -1.06B |
| Financing Cash Flow | 955.67M | -486.74M | 2.06B | 963.47M | 2.97B | -590.63M |
Digital Realty Technical Analysis
Negative
192.32
Price Trends
186.23
Negative
184.78
Negative
179.54
Negative
Market Momentum
-1.90
Negative
41.62
Neutral
62.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLR, the sentiment is Negative. The current price of 192.32 is above the 20-day moving average (MA) of 180.52, above the 50-day MA of 186.23, and above the 200-day MA of 179.54, indicating a bearish trend. The MACD of -1.90 indicates Negative momentum. The RSI at 41.62 is Neutral, neither overbought nor oversold. The STOCH value of 62.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $123.39B | 28.73 | 7.90% | 3.26% | 7.35% | 21.58% | |
69 Neutral | $7.97B | 21.56 | 13.42% | 3.28% | 8.44% | 34.29% | |
69 Neutral | $8.06B | -20.34 | -4.75% | 4.66% | 0.58% | -234.18% | |
68 Neutral | $66.95B | 81.14 | 3.30% | 2.77% | 18.74% | -45.63% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
60 Neutral | $7.79B | -47.59 | -2.07% | 6.17% | 1.03% | 72.17% | |
53 Neutral | $3.90B | -8.70 | -16.36% | 6.66% | -0.21% | -727.73% |
* Real Estate Sector Average
DLR
Digital Realty
176.07
5.74
3.37%
PLD
Prologis
129.29
18.32
16.51%
FR
First Industrial Realty
59.30
9.65
19.45%
REXR
Rexford Industrial Realty
37.23
-2.05
-5.23%
COLD
Americold Realty
13.81
1.29
10.31%
LINE
Lineage, Inc.
34.44
-3.29
-8.72%
Digital Realty Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Digital Realty Issues Multi-Tranche Swiss Franc Senior Notes
Positive
Oct 6, 2026
On October 6, 2026, Digital Constellation B.V., an indirect wholly owned finance subsidiary of Digital Realty’s operating partnership, issued and sold a total of CHF510 million in senior unsecured Swiss franc notes maturing in 2029, 2032 and...
Business Operations and StrategyPrivate Placements and Financing
Digital Realty Prices €1 Billion Green Bond Offering
Positive
Oct 6, 2026
On October 6, 2026, Digital Realty announced that its finance subsidiary Digital Euro Finco, LLC had priced a €1 billion offering of senior unsecured 5.125% Guaranteed Notes due October 9, 2036, at 99.289% of par, with closing expected on Oc...
Business Operations and StrategyPrivate Placements and Financing
Digital Realty Launches Euro Green Senior Notes Offering
Positive
Oct 6, 2026
Digital Realty, through its subsidiary Digital Euro Finco, LLC, commenced on October 6, 2026 an offering of Euro-denominated senior unsecured notes guaranteed by Digital Realty Trust, Inc. and its operating partnership, to be sold outside the U.S....
M&A TransactionsRegulatory Filings and Compliance
Digital Realty Registers Resale Shares From Acquisition
Neutral
Aug 19, 2026
Digital Realty has moved to register the resale of certain shares of common stock that were issued as part of its acquisition of Columbia Capital. The company is doing so through a prospectus supplement filed with the Securities and Exchange Commi...
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...
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.