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Digital Realty (DLR) AI Stock Analysis
Digital Realty
(NYSE:DLR)
DLR scores well primarily on improving operating/cash-flow trajectory and a very strong earnings-call outlook (raised core FFO guidance, record leasing/backlog, improving occupancy and renewal economics). The overall score is tempered by expensive valuation (high P/E) and only mixed technical momentum (slightly negative MACD and elevated stochastic).
Digital Realty Key Performance Indicators (KPIs)
Data Center Buildings By GeographyHighlights the distribution of data center facilities across various regions, indicating strategic positioning and potential exposure to regional market trends and demands.
Digital Realty’s footprint appears to undergo a reporting reclassification in late 2025: North America, Europe, Africa, and portfolio categories drop out as consolidated Americas and EMEA metrics begin, so the apparent collapse is not an operating contraction. The new view indicates a broadly stable core estate, while APAC expands materially, suggesting greater regional diversification. This capacity base supports management’s raised outlook, backed by record backlog, hyperscale demand, and more than $12 billion of remaining development capacity, though higher capital intensity and lumpy lease timing remain key risks.
The FlyDigital Realty (DLR) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $64.63B
- Dividend Yield
- 2.80%
- Average Volume (3M)
- 2.16M
- Price to Earnings (P/E)
- 69.7
- Beta (1Y)
- 0.67
- Revenue Growth
- 21.31%
- EPS Growth
- -38.06%
- Country
- US
- Employees
- 4,282
- Sector
- Real Estate
- Sector Strength
- 65
- Industry
- REIT - Specialty
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 dom...
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 leasi...
Digital Realty Earnings Call Summary
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.
Q3-2026 Updates
Positive Updates
Negative Updates
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.
Digital Realty Financial Statement Overview
Summary
Financials are solid overall, led by strong EBITDA margin (~49.8% TTM), improving leverage (debt-to-equity ~0.67 TTM), and a return to positive free cash flow (~$1.37B TTM, up ~18%). Offsetting these strengths are volatile profitability and cash conversion, including an unusually weak TTM gross margin (~13.8%) versus prior years and historically negative FCF in 2022–2024.
Income Statement
74PositiveBalance Sheet
67PositiveCash Flow
70Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.17B | 6.11B | 5.55B | 5.48B | 4.69B | 4.43B |
| Gross Profit | 1.13B | 3.39B | 3.04B | 2.88B | 2.67B | 2.65B |
| EBITDA | 3.56B | 3.59B | 2.87B | 3.16B | 2.29B | 3.60B |
| Net Income | 926.56M | 1.31B | 602.49M | 948.84M | 377.68M | 1.71B |
Balance Sheet | ||||||
| Total Assets | 56.52B | 49.41B | 45.28B | 44.11B | 41.48B | 36.37B |
| Cash, Cash Equivalents and Short-Term Investments | 802.90M | 3.45B | 3.87B | 1.63B | 141.77M | 142.70M |
| Total Debt | 20.69B | 24.18B | 18.01B | 18.97B | 18.07B | 14.96B |
| Total Liabilities | 26.28B | 24.56B | 22.11B | 23.12B | 21.86B | 17.85B |
| Stockholders Equity | 28.11B | 22.93B | 21.34B | 19.12B | 17.58B | 18.00B |
Cash Flow | ||||||
| Free Cash Flow | 1.40B | 2.41B | -570.26M | -1.89B | -983.71M | -818.54M |
| Operating Cash Flow | 2.31B | 2.41B | 2.26B | 1.63B | 1.66B | 1.70B |
| Investing Cash Flow | -5.01B | -2.23B | -1.91B | -1.12B | -4.70B | -1.06B |
| Financing Cash Flow | 1.13B | -486.74M | 2.06B | 963.47M | 2.97B | -590.63M |
Digital Realty Technical Analysis
Price Trends
Market Momentum
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 174.20 is below the 20-day moving average (MA) of 176.78, below the 50-day MA of 179.83, and below the 200-day MA of 181.96, indicating a bearish trend. The MACD of -0.44 indicates Negative momentum. The RSI at 45.29 is Neutral, neither overbought nor oversold. The STOCH value of 42.14 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.
Latest Risks Added
0 New RisksDigital Realty Peers Comparison
Overall Rating
PLD74Outperform
FR73Outperform
LINE71Outperform- DLR70Outperform
REXR64Neutral
COLD56Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| PLD | 74Outperform | $123.10B | 27.96 | 7.88% | 3.32% | 7.16% | 32.07% |
| FR | 73Outperform | $7.37B | 19.91 | 13.03% | 3.62% | 8.55% | 50.73% |
| LINE | 71Outperform | $8.91B | -54.07 | -2.07% | 5.43% | 1.03% | 72.17% |
| DLR | 70Outperform | $65.90B | 69.68 | 3.64% | 2.80% | 21.31% | -38.06% |
| Sector * | 65Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
| REXR | 64Neutral | $8.02B | -17.91 | -5.90% | 4.59% | -1.80% | -248.68% |
| COLD | 56Neutral | $4.57B | 19.23 | 8.55% | 5.75% | 1.26% | ― |
* Real Estate Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| DLR | Digital Realty Trust | 174.20 | 9.70 | 5.90% | |
| PLD | Prologis, Inc. | 126.96 | 5.86 | 4.84% | |
| FR | First Industrial Realty Trust | 53.76 | -0.47 | -0.87% | |
| REXR | Rexford Industrial Realty, Inc. | 37.80 | -1.81 | -4.56% | |
| COLD | Americold Realty Trust | 16.01 | 5.46 | 51.78% | |
| LINE | Lineage, Inc. | 39.13 | 7.30 | 22.92% |
Digital Realty Corporate Events
Digital Realty Expands Teraco Stake and Registers Share Resales
PositiveDigital Realty Trust, Inc. disclosed that on October 19, 2026 it acquired approximately 16% of the interests in its Teraco joint venture, following the exercise of a put right by certain third‑party partners in the venture. As consideration for...
Digital Realty Posts Q3 2026 Earnings and Disclosures
PositiveOn October 29, 2026, Digital Realty released its financial results for the quarter ended September 30, 2026, alongside a detailed financial supplement covering key metrics such as funds from operations, balance sheet data, leasing activity and develo...
Digital Realty Issues Green Senior Notes to Fund Projects
PositiveOn October 9, 2026, Digital Euro Finco, LLC issued and sold €1 billion of senior unsecured 5.125% Guaranteed Notes due 2036, priced at 99.289% of par and fully guaranteed by Digital Realty Trust, Inc. and its operating partnership. The notes, s...
Digital Realty Issues Multi-Tranche Swiss Franc Senior Notes
PositiveOn 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 20...
Digital Realty Prices €1 Billion Green Bond Offering
PositiveOn 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 Octob...
Digital Realty Launches Euro Green Senior Notes Offering
PositiveDigital 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. un...
Digital Realty Registers Resale Shares From Acquisition
NeutralDigital 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 Commissi...
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.
Date of analysis: Oct 31, 2026