Digital Realty Trust (NYSE:DLR) Posts Quarterly Earnings Results

Digital Realty Trust (NYSE:DLR) released its earnings results on Thursday. The real estate investment trust reported $0.48 earnings per share for the quarter, missing the consensus estimate of $0.52 by ($0.04), FiscalAI reports. Digital Realty Trust had a return on equity of 3.34% and a net margin of 11.80%. The firm had revenue of $1.90 billion during the quarter, compared to analysts’ expectations of $1.75 billion. During the same period last year, the business earned $1.89 earnings per share. The business’s revenue was up 20.6% on a year-over-year basis.

Here are the key takeaways from Digital Realty Trust’s conference call:

• Record leasing activity reached $855 million, with bookings up 20% from the prior quarterly record and total backlog rising nearly 30% sequentially to $2.5 billion. Management said the backlog provides strong visibility into 2027 and beyond.
• Core FFO per share rose 11% year over year to $2.10, prompting Digital Realty to raise its 2026 guidance by $0.15 to $8.30–$8.35 per share, implying nearly 13% annual growth. Same-capital cash NOI and renewal-spread expectations were also increased.
• Demand broadened beyond large AI training deployments, with record colocation, interconnection, and hyperscale bookings across regions. AI-related deployments represented 44% of zero-to-one-megawatt bookings, while inference, agentic AI, and sovereign AI are expanding demand for distributed, connectivity-rich capacity.
• The company closed more than $1.4 billion of cornerstone commitments for a perpetual private-capital strategy focused on stabilized North American hyperscale data centers. Combined with debt and equity issuance, management estimates more than $20 billion of available capital for future development.
• Digital Realty continued investing heavily, spending $1.5 billion on development CapEx in the quarter and expanding its pipeline to 1.5 gigawatts under construction at an expected cost of $22 billion. Management cited supply-chain expertise and a diversified global footprint as tools to mitigate industry-wide development delays and cost pressures.

Digital Realty Trust Trading Up 1.9%

Shares of DLR opened at $183.21 on Friday. Digital Realty Trust has a 12-month low of $146.23 and a 12-month high of $208.14. The firm has a market capitalization of $67.97 billion, a price-to-earnings ratio of 88.94, a P/E/G ratio of 3.47 and a beta of 0.99. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.68. The stock’s 50-day moving average price is $181.73 and its 200 day moving average price is $182.80.

Digital Realty Trust Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were issued a dividend of $1.22 per share. The ex-dividend date was Tuesday, September 15th. This represents a $4.88 annualized dividend and a dividend yield of 2.7%. Digital Realty Trust’s payout ratio is presently 236.89%.

Key Headlines Impacting Digital Realty Trust

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

• Positive Sentiment: Q3 results exceeded expectations: Digital Realty reported $2.10 in per-share funds from operations, beating consensus by $0.10, while revenue reached $1.9 billion—approximately $140 million above estimates. Revenue increased 20.6% year over year. Digital Realty Trust FFO and revenue beat estimates
• Positive Sentiment: 2026 outlook was raised: Management increased its full-year core FFO guidance to $8.30–$8.35 per share. The midpoint is broadly consistent with the $8.34 FactSet estimate, suggesting improved visibility but limited upside relative to current expectations. Digital Realty Trust reports Q3 earnings above consensus and raises outlook
• Positive Sentiment: Strong operating momentum: The quarterly report showed substantial year-over-year revenue growth, while the earnings release and conference call provided investors with additional detail on business performance and the company’s expectations. Digital Realty Reports Third Quarter 2026 Results

Analyst Upgrades and Downgrades

DLR has been the topic of several research analyst reports. Cantor Fitzgerald lifted their price objective on shares of Digital Realty Trust from $221.00 to $223.00 and gave the stock an “overweight” rating in a research report on Friday. Rothschild & Co Redburn initiated coverage on Digital Realty Trust in a report on Monday, September 21st. They issued a “buy” rating and a $227.00 target price for the company. Canadian Imperial Bank of Commerce initiated coverage on Digital Realty Trust in a research report on Tuesday, October 20th. They issued an “outperform” rating and a $213.00 target price for the company. KeyCorp reiterated a “sector weight” rating on shares of Digital Realty Trust in a report on Friday, July 24th. Finally, The Goldman Sachs Group reissued a “buy” rating and set a $237.00 price target on shares of Digital Realty Trust in a research report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $221.03.

Insider Buying and Selling

In other Digital Realty Trust news, Director Mark Patterson sold 200 shares of the company’s stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $193.96, for a total value of $38,792.00. Following the sale, the director directly owned 6,322 shares in the company, valued at $1,226,215.12. This represents a 3.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.15% of the stock is currently owned by corporate insiders.

About Digital Realty Trust

Digital Realty Trust, Inc is a real estate investment trust that owns, operates and develops data center facilities for businesses, cloud service providers, information technology companies and telecommunications organizations. The company provides the physical infrastructure needed to support data storage, networking, cloud computing and other digital operations.

Its services include data center colocation, interconnection and private connectivity solutions. Digital Realty also offers access to cloud and network providers through its PlatformDIGITAL platform, which is designed to help customers deploy, connect and manage their digital infrastructure across multiple locations.

Founded in 2001, Digital Realty serves customers through a global portfolio of data centers and related facilities across North America, Europe, Asia-Pacific and Latin America.