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Digital Realty (DLR) Q3 2026 Earnings Report
DLR Q3 2026 EPS Results
- Actual EPS
- $0.48
- Consensus EPS
- $0.52
- Beat/Miss
- Missed by -$0.04
- One Year Ago EPS
- $0.15
DLR Q3 2026 Revenue Results
- Actual Revenue
- $1.90B
- Expected Revenue
- $1.75B
- Beat/Miss
- Beat by +$148.30M
- YoY Revenue Growth
- +20.62%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/29/2026
- Time
- After Close
- Conference Call
- Thursday, October 29, 2026
DLR Upcoming Earnings
Digital Realty's next earnings date is estimated for February 18, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DLR Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, marked by record leasing, accelerating AI and interconnection demand, improving occupancy and renewal economics, double-digit core FFO growth, raised guidance, a record backlog and expanded access to public and private capital. Management also acknowledged community, power, water, development-delay and cost-of-capital challenges, but described execution and balance sheet capacity as strong and maintained confidence in continued growth through 2027 and beyond.
Company Guidance
Digital Realty is raising 2026 core FFO per share guidance, excluding net promote income, by $0.15 or nearly 2% to a new range of $8.30 to $8.35 per share; the midpoint of the updated range represents almost 13% growth over 2025 and would mark the second consecutive year of double-digit core FFO per share growth. The company expects cash renewal spreads of 10% to 12%, same-capital cash NOI growth of 5.25% to 5.75% on a constant currency basis, and CapEx net of partner contributions of $4.25 billion to $4.75 billion, while capital recycling guidance is raised by another $500 million to a range of $1.5 billion to $2 billion. Management also expects commencements to accelerate over the next 2 quarters, supported by over 250 megawatts of upcoming pre-lease deliveries, and expressed increased confidence in extending its double-digit core FFO per share growth trajectory into 2027 and beyond.
- Core FFO Growth and Raised GuidanceThird-quarter core FFO per share was $2.10, up 11% year-over-year. Digital Realty raised 2026 core FFO per share guidance by $0.15, or nearly 2%, to $8.30-$8.35; the midpoint represents almost 13% growth over 2025 and would mark the second consecutive year of double-digit core FFO per share growth.
- Record Total Leasing ActivityTotal third-quarter bookings reached approximately $855 million, or $627 million at Digital Realty's share, exceeding the prior quarterly record by 18% according to management and driving a new record across leasing categories.
- Strong Hyperscale Leasing and PricingGreater-than-1-megawatt bookings reached $689 million, or $474 million at Digital Realty's share, setting a quarterly record. Results were supported by two Northern Virginia hyperscale leases, record signings in APAC, and strong pricing. APAC leasing exceeded the prior regional record by more than 600%.
- Accelerating Colocation and Interconnection BookingsBookings in the 0-1 megawatt plus interconnection category reached a record $165 million, or $151.8 million at Digital Realty's share, up 40% from the second quarter and 80% year-over-year. This was the fourth consecutive quarterly record, with new records across all three regions.
- Record Interconnection Activity and AI DeploymentsInterconnection bookings totaled a record $23.9 million, or $22.2 million at Digital Realty's share, approximately 8% above the prior quarterly record. AI inference-related deployments spanned more than 15 markets, including a major AI lab's network architecture deployment across 15 EMEA sites.
- AI-Driven Demand Broadening Across Use CasesManagement reported that AI demand is extending beyond large-scale training into enterprise adoption, inference workloads, connectivity-rich environments, sovereign AI and new geographies. AI-related activity represented 44% of third-quarter 0-1 megawatt bookings, and management said fourth-quarter bookings had already reached 60% of the third-quarter 0-1 megawatt booking number.
- Record Backlog Provides Multi-Year VisibilityTotal backlog reached a record $2.5 billion, or $1.8 billion at Digital Realty's share, representing an almost 30% sequential increase. Booked-not-billed backlog represented almost 40% of in-place rental revenue and was cited as providing visibility through 2027 and into 2028.
- Improving Portfolio FundamentalsSame-capital cash NOI increased approximately 6% year-over-year in the third quarter, while year-to-date constant-currency growth was approximately 5%. Stabilized occupancy increased nearly 90 basis points sequentially to 93.4%, churn reached a record low of 0.7%, and cash re-leasing spreads approached 12%.
- Strong Recurring Revenue and Renewal PerformanceRecurring revenue increased nearly 16% year-to-date, or more than 14% on a constant-currency basis, with double-digit reported growth across all three regions. Digital Realty signed $261 million of renewals at an 11.8% blended average cash re-leasing spread; year-to-date cash renewal spreads were over 14%.
- Significant Mark-to-Market OpportunityRenewals in the 0-1 megawatt category represented 61% of total renewals and generated a 4.7% cash mark-to-market. Greater-than-1-megawatt renewals represented 36% and delivered a 26.3% mark-to-market, led by multiple Northern Virginia hyperscale renewals.
- Upcoming Revenue CommencementsDigital Realty commenced $207 million of annualized GAAP rent in the third quarter, consistent with the prior three quarters. Management expects commencements to accelerate over the next two quarters, supported by newly signed 0-1 megawatt leases and more than 250 megawatts of upcoming pre-lease deliveries.
- Expansion of Development PipelineThe development pipeline expanded to 1.5 gigawatts under construction at a total expected cost of $22 billion, up 9% quarter-over-quarter. The pipeline was 63% pre-leased with an 11.6% average expected stabilized yield. Management also stated that the pipeline had increased from $10 billion to $22 billion since the beginning of the year, while net yields rose above 11.5%.
- Development Investment and New Market ExpansionDigital Realty invested $1.5 billion in development CapEx during the quarter and $3.3 billion year-to-date from its partner share. It invested more than $700 million across seven locations in the U.S. and Europe, delivered 50 megawatts of new IT capacity that was 95% pre-leased, and commenced development of 112 megawatts across five APAC countries and other regions.
- Entry Into Turkey and Expansion to 65 Global MetrosDigital Realty expanded into Turkey through a development joint venture, making Turkey its 65th global metro. The first Ankara project is planned for 22 megawatts of IT capacity with meaningful expansion potential, followed by a focus on Istanbul.
- Strategic Private Capital ProgressThe company closed more than $1.4 billion of initial cornerstone equity commitments for a perpetual capital strategy focused on stabilized hyperscale data centers in North America. Earlier in the year, its closed-end fund raised $3.25 billion versus an initial $2.5 billion target. Management said the private capital platform expands funding sources and supports long-term growth.
- Expanded Capital Access and Credit UpgradeDigital Realty raised approximately $3.5 billion across the capital stack in recent weeks, including $450 million of common equity under the ATM and $1.7 billion of debt proceeds at a 4% blended average coupon. Moody's upgraded the company's long-term issuer rating to Baa1.
- Balance Sheet CapacityPro forma leverage was 4.9x at quarter end, below the company's long-term target, while management estimated more than $20 billion of capital available for future development from liquidity, leverage capacity and private capital sources.
- Raised Operating and Capital Recycling GuidanceDigital Realty raised its full-year cash renewal spread guidance to 10%-12% and same-capital cash NOI growth guidance to 5.25%-5.75% on a constant-currency basis. Capital recycling guidance increased by $500 million to $1.5 billion-$2 billion, reflecting the new perpetual private capital strategy. Net CapEx guidance remained $4.25 billion-$4.75 billion.
- Global Platform and AI-Ready InfrastructureManagement highlighted a global platform spanning six continents and more than 6,000 customers. Liquid cooling for AI use cases was operational in more than 25 locations, with sold-but-not-yet-delivered deployments roughly doubling the customer and location counts and approaching 1 gigawatt of operational expertise.
- Community and Sustainability InitiativesLast year, 93% of global electricity consumption was covered by clean energy, and approximately 75% of data centers used highly efficient closed-loop cooling systems or did not use water for cooling. The company signed the Ratepayer Protection Pledge, launched Infrastructure for America with other providers, and cited community redevelopment and economic-development projects in Loudoun County, Fort Gillem and De Soto.
- Operational Execution and Supply Chain ManagementManagement said Digital Realty has largely maintained its delivery track record despite industry-wide development delays by using its experience, regional scale, extended supply chains, vendor-managed inventory programs and swing capacity across markets.
DLR Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 18, 2027 | 2026 (Q4) | 0.57- | 0.24 | ― | ― |
| Oct 29, 2026 | 2026 (Q3) | 0.520.48 | 0.15 | 220.00% (+0.33) | |
| Jul 23, 2026 | 2026 (Q2) | 0.481.21 | 2.94 | -58.84% (-1.73) | |
| Apr 23, 2026 | 2026 (Q1) | 0.440.46 | 0.27 | 70.37% (+0.19) | |
| Feb 05, 2026 | 2025 (Q4) | 0.290.24 | 0.51 | -52.94% (-0.27) | |
| Oct 23, 2025 | 2025 (Q3) | 0.310.15 | 0.12 | 25.00% (+0.03) | |
| Jul 24, 2025 | 2025 (Q2) | 0.412.94 | 0.2 | 1370.00% (+2.74) | |
| Apr 24, 2025 | 2025 (Q1) | 0.300.27 | 0.82 | -67.07% (-0.55) | |
| Feb 13, 2025 | 2024 (Q4) | 0.270.51 | 0.08 | 537.50% (+0.43) | |
| Oct 24, 2024 | 2024 (Q3) | 0.260.12 | 2.33 | -94.85% (-2.21) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
