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

Digital Realty Trust (NYSE:DLR) announced its earnings results on Thursday. The real estate investment trust reported $0.46 EPS for the quarter, meeting the consensus estimate of $0.46, Zacks reports. Digital Realty Trust had a net margin of 21.41% and a return on equity of 5.88%. The company had revenue of $1.64 billion during the quarter, compared to the consensus estimate of $1.63 billion. During the same quarter in the prior year, the company posted $1.77 earnings per share. The firm’s revenue for the quarter was up 16.2% on a year-over-year basis. Digital Realty Trust updated its FY 2026 guidance to 7.950-8.050 EPS.

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

• Digital delivered record leasing—signed $707M of new leases (​$423M at DLR share), including the company’s largest-ever 200‑MW AI inference hyperscale lease and a record $98M in 0–1 MW interconnection bookings (21% AI‑oriented).
• Backlog and development ramp—total backlog reached $1.8B ($1.0B DLR share) and the pipeline scaled to $16.5B with ~1.2 GW under construction that is roughly 61–68% pre‑leased and targeting ~11% unlevered yields, giving multi‑year revenue visibility.
• Strong financials and tighter balance sheet—Q1 Core FFO was $2.04 (+15% YoY), management raised full‑year 2026 Core FFO guidance to $8.00–$8.10 (midpoint ~9% growth), and leverage fell to a multiyear low of 4.7x.
• Capital strategy and investment pace—Digital is expanding strategic private capital (closed a $3.25B hyperscale fund and cites ~$10B available plus $8B+ JV dry powder) while increasing CapEx guidance to fund the hyperscale buildout, supporting growth but raising near‑term investment needs.

Digital Realty Trust Price Performance

Digital Realty Trust stock opened at $199.76 on Friday. The business’s 50 day simple moving average is $182.84 and its 200 day simple moving average is $170.06. Digital Realty Trust has a 12 month low of $146.23 and a 12 month high of $204.94. The company has a market cap of $69.71 billion, a price-to-earnings ratio of 55.49, a PEG ratio of 4.45 and a beta of 1.07. The company has a current ratio of 1.59, a quick ratio of 1.59 and a debt-to-equity ratio of 0.81.

Digital Realty Trust Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Friday, March 13th were issued a $1.22 dividend. This represents a $4.88 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend was Friday, March 13th. Digital Realty Trust’s payout ratio is 135.56%.

Institutional Trading of Digital Realty Trust

Hedge funds have recently made changes to their positions in the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Digital Realty Trust by 686.0% during 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 acquiring an additional 4,195,862 shares during the period. Viking Global Investors LP bought a new stake in Digital Realty Trust in the 4th quarter valued at about $233,301,000. Price T Rowe Associates Inc. MD raised its stake in Digital Realty Trust by 78.8% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 3,190,797 shares of the real estate investment trust’s stock valued at $493,650,000 after acquiring an additional 1,405,791 shares during the period. Alyeska Investment Group L.P. lifted its holdings in Digital Realty Trust by 581.0% during the third quarter. Alyeska Investment Group L.P. now owns 961,121 shares of the real estate investment trust’s stock valued at $166,159,000 after purchasing an additional 819,982 shares during the last quarter. Finally, Resolution Capital Ltd lifted its holdings in Digital Realty Trust by 25.2% during the second quarter. Resolution Capital Ltd now owns 2,967,618 shares of the real estate investment trust’s stock valued at $517,345,000 after purchasing an additional 596,420 shares during the last quarter. 99.71% of the stock is currently owned by institutional investors.

Trending Headlines about Digital Realty Trust

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

• Positive Sentiment: Q1 results beat expectations: FFO/Core FFO came in above consensus and revenue grew year‑over‑year, reinforcing execution and cash‑flow momentum. Digital Realty Reports First Quarter 2026 Results
• Positive Sentiment: Company raised annual core FFO and revenue guidance, citing strong AI‑driven demand for data‑center capacity — a clear signal that near‑term growth expectations have improved. Digital Realty boosts annual core FFO, revenue forecasts
• Positive Sentiment: Leasing/backlog and development pipeline expanded materially: greater‑than‑1MW signings lifted backlog to ~$1.8B (DLR share ~$1.0B) and pipeline rose >50% to ~1.2 GW under construction with ~61% preleased — improves visibility into 2027–28 cash flows. Digital Realty Q1 2026 Earnings Transcript
• Positive Sentiment: Street support picked up: Stifel and Mizuho raised price targets (to $230 and $217) and Evercore issued bullish commentary — analyst upgrades add fuel to near‑term upside. Stifel raises DLR target Mizuho raises DLR target
• Neutral Sentiment: Analyst and press writeups dig into metric details (FFO vs. Core FFO, same‑store trends and guidance assumptions); useful for modeling but not singular catalysts. Digital Realty Beats Q1 FFO and Revenue Estimates
• Negative Sentiment: Governance/distraction risk: an activist presentation at Americold flagged Digital Realty CEO Andrew Power’s role on that board — could create headline risk even though it’s indirect to DLR’s operations. Sieve Capital presentation on Americold
• Negative Sentiment: Valuation is elevated (DLR trades at a high multiple vs. history), so upside depends on continued FFO growth and successful absorption of new capacity — a miss to growth assumptions could pressure the stock.

Analyst Upgrades and Downgrades

Several research firms have commented on DLR. HSBC set a $193.00 target price on shares of Digital Realty Trust and gave the stock a “buy” rating in a research report on Thursday, January 15th. The Goldman Sachs Group reaffirmed a “buy” rating on shares of Digital Realty Trust in a research report on Friday. Stifel Nicolaus lifted their price target on Digital Realty Trust from $200.00 to $230.00 and gave the stock a “buy” rating in a report on Wednesday. Cantor Fitzgerald initiated coverage on Digital Realty Trust in a research report on Thursday, April 9th. They issued an “overweight” rating and a $211.00 price objective on the stock. Finally, Wolfe Research upped their price objective on Digital Realty Trust from $194.00 to $211.00 and gave the company an “outperform” rating in a research note on Monday, April 6th. Four analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, Digital Realty Trust currently has an average rating of “Moderate Buy” and an average price target of $203.67.

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.