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

Digital Realty Trust (NYSE:DLR) released its quarterly earnings results on Thursday. The real estate investment trust reported $1.21 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.98 by ($0.77), FiscalAI reports. Digital Realty Trust had a return on equity of 6.05% and a net margin of 21.73%.The firm had revenue of $1.92 billion during the quarter, compared to analysts’ expectations of $1.66 billion. During the same quarter last year, the business earned $1.87 earnings per share. The business’s quarterly revenue was up 28.9% on a year-over-year basis. 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 Price Performance

Shares of NYSE DLR traded up $27.50 during midday trading on Friday, reaching $206.84. The stock had a trading volume of 5,603,468 shares, compared to its average volume of 2,406,619. The company has a market capitalization of $72.69 billion, a price-to-earnings ratio of 54.40, a price-to-earnings-growth ratio of 4.86 and a beta of 1.03. Digital Realty Trust has a 12-month low of $146.23 and a 12-month high of $208.14. The stock has a 50-day moving average of $184.35 and a 200-day moving average of $180.59. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.59 and a current ratio of 1.59.

Digital Realty Trust Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th were paid a $1.22 dividend. The ex-dividend date of this dividend was Monday, June 15th. This represents a $4.88 dividend on an annualized basis and a dividend yield of 2.4%. Digital Realty Trust’s dividend payout ratio is 128.76%.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of DLR. State Street Corp raised its holdings in Digital Realty Trust by 1.1% during the fourth quarter. State Street Corp now owns 20,649,053 shares of the real estate investment trust’s stock valued at $3,219,256,000 after acquiring an additional 231,933 shares during the period. Northern Trust Corp grew its position in shares of Digital Realty Trust by 2.5% during the fourth quarter. Northern Trust Corp now owns 5,787,922 shares of the real estate investment trust’s stock worth $895,449,000 after purchasing an additional 140,388 shares in the last quarter. Dimensional Fund Advisors LP grew its position in shares of Digital Realty Trust by 3.3% during the fourth quarter. Dimensional Fund Advisors LP now owns 4,814,566 shares of the real estate investment trust’s stock worth $744,879,000 after purchasing an additional 151,660 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Digital Realty Trust by 686.0% in the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,807,512 shares of the real estate investment trust’s stock worth $831,123,000 after purchasing an additional 4,195,862 shares during the period. Finally, Invesco Ltd. grew its holdings in Digital Realty Trust by 8.5% during the 4th quarter. Invesco Ltd. now owns 4,433,515 shares of the real estate investment trust’s stock valued at $685,909,000 after buying an additional 346,200 shares in the last quarter. Institutional investors own 99.71% of the company’s stock.

Analyst Ratings Changes

A number of research analysts have weighed in on DLR shares. Evercore increased their target price on Digital Realty Trust from $200.00 to $230.00 and gave the company an “outperform” rating in a report on Tuesday, April 21st. Raymond James Financial increased their price objective on shares of Digital Realty Trust from $210.00 to $235.00 and gave the stock a “strong-buy” rating in a research note on Friday, April 24th. Cantor Fitzgerald reissued an “overweight” rating and issued a $211.00 price objective on shares of Digital Realty Trust in a report on Friday, May 1st. The Goldman Sachs Group restated a “buy” rating and set a $215.00 target price on shares of Digital Realty Trust in a research report on Friday, April 24th. Finally, HSBC downgraded shares of Digital Realty Trust from a “buy” rating to a “hold” rating and increased their price target for the stock from $193.00 to $210.00 in a research report on Monday, April 27th. One research analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $217.21.

Key Digital Realty Trust News

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

• Positive Sentiment: Digital Realty reported second-quarter FFO of $2.13 per share, topping estimates, while revenue of $1.92 billion also beat expectations and rose 28.9% year over year. Article: Digital Realty Trust (DLR) Beats Q2 FFO and Revenue Estimates
• Positive Sentiment: The company raised full-year FFO guidance to $8.15-$8.20 and lifted revenue guidance to about $6.85 billion-$7.0 billion, signaling management confidence in ongoing leasing momentum. Article: Digital Realty raises annual FFO forecast on robust data center demand
• Positive Sentiment: Management said record backlog, strong bookings, and higher renewal rents are supporting growth, which should help future cash flow and earnings visibility. Article: DLR Q2 FFO Beats on Leasing Strength & Renewal Rent, ’26 View Raised
• Positive Sentiment: TD Cowen upgraded Digital Realty from hold to buy and set a $222 price target, reinforcing the bullish view that demand tied to AI infrastructure remains strong. Article: TD Cowen upgrade coverage
• Neutral Sentiment: The quarter included a mixed result on EPS, as reported earnings missed consensus even while revenue and FFO beat estimates, so investors may focus more on operating strength and guidance than the headline EPS miss.

Digital Realty Trust Company Profile

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.