Digital Realty Trust (NYSE:DLR) Issues Earnings Results, Beats Expectations By $1.58 EPS

Digital Realty Trust (NYSE:DLR) released its quarterly earnings data on Thursday. The real estate investment trust reported $2.04 earnings per share for the quarter, topping analysts’ consensus estimates of $0.46 by $1.58, 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 analyst estimates of $1.63 billion. During the same period in the prior year, the firm earned $1.77 earnings per share. The firm’s revenue for the quarter was up 16.2% compared to the same quarter last year. 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 Stock Down 0.5%

Shares of DLR stock traded down $1.10 during mid-day trading on Thursday, hitting $199.76. 2,735,099 shares of the stock traded hands, compared to its average volume of 1,839,069. Digital Realty Trust has a 52-week low of $146.23 and a 52-week high of $204.94. The company has a debt-to-equity ratio of 0.81, a current ratio of 1.59 and a quick ratio of 1.59. The stock has a market cap of $69.71 billion, a P/E ratio of 55.49, a P/E/G ratio of 4.45 and a beta of 1.07. The stock’s fifty day moving average is $182.45 and its two-hundred day moving average is $169.85.

Digital Realty Trust Announces Dividend

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

Analysts Set New Price Targets

A number of analysts recently weighed in on DLR shares. Truist Financial started coverage on shares of Digital Realty Trust in a research note on Tuesday, March 31st. They issued a “buy” rating and a $207.00 price objective for the company. Bank of America reaffirmed a “neutral” rating and issued a $170.00 price objective (down from $210.00) on shares of Digital Realty Trust in a research note on Thursday, January 8th. Barclays increased their price target on shares of Digital Realty Trust from $182.00 to $189.00 and gave the company an “equal weight” rating in a research report on Thursday, April 16th. BMO Capital Markets increased their price target on shares of Digital Realty Trust from $205.00 to $220.00 and gave the company an “outperform” rating in a research report on Monday. Finally, Weiss Ratings raised shares of Digital Realty Trust from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, February 17th. Four research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $203.67.

Hedge Funds Weigh In On Digital Realty Trust

Several hedge funds have recently modified their holdings of the stock. Scotia Capital Inc. increased its holdings in shares of Digital Realty Trust by 0.9% during the third quarter. Scotia Capital Inc. now owns 7,379 shares of the real estate investment trust’s stock valued at $1,276,000 after acquiring an additional 64 shares in the last quarter. L2 Asset Management LLC increased its holdings in shares of Digital Realty Trust by 4.7% during the third quarter. L2 Asset Management LLC now owns 1,581 shares of the real estate investment trust’s stock valued at $273,000 after acquiring an additional 71 shares in the last quarter. Integrated Advisors Network LLC increased its holdings in shares of Digital Realty Trust by 4.0% during the fourth quarter. Integrated Advisors Network LLC now owns 1,984 shares of the real estate investment trust’s stock valued at $307,000 after acquiring an additional 77 shares in the last quarter. Equitable Holdings Inc. increased its holdings in shares of Digital Realty Trust by 0.3% during the second quarter. Equitable Holdings Inc. now owns 24,139 shares of the real estate investment trust’s stock valued at $4,208,000 after acquiring an additional 83 shares in the last quarter. Finally, Brooklyn Investment Group increased its holdings in shares of Digital Realty Trust by 4.5% during the third quarter. Brooklyn Investment Group now owns 2,218 shares of the real estate investment trust’s stock valued at $383,000 after acquiring an additional 95 shares in the last quarter. Institutional investors and hedge funds own 99.71% of the company’s stock.

Digital Realty Trust News Roundup

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

• Positive Sentiment: Q1 operating results beat expectations — Digital Realty reported stronger FFO/Core FFO and revenue for 1Q26 (Core FFO ~ $2.04/sh; reported FFO ~ $1.99–$2.04/sh depending on metric reported) and net income improved year-over-year. These beats support the company’s growth trajectory in data-center leasing and drove analyst attention. Digital Realty Reports First Quarter 2026 Results
• Positive Sentiment: FFO and revenue topped consensus — Zacks highlights an FFO beat (around $2.04 vs. ~$1.94 estimate) and revenue slightly above estimates, reinforcing the core cash‑flow story that REIT investors monitor. Digital Realty Trust (DLR) Beats Q1 FFO and Revenue Estimates
• Positive Sentiment: FY26 guidance nudged up — management updated FY26 EPS guidance to roughly $7.95–$8.05 (vs. consensus ~7.94) and gave revenue guidance near $6.7–$6.8B, implying continued steady cash‑flow growth. That guidance stability helped underpin analyst upgrades. View Press Release
• Positive Sentiment: Analysts raised targets — Mizuho bumped its PT to $217 (outperform) and Stifel raised its PT to $230 (buy), signaling buy‑side conviction that upside remains after the beat/guidance. Mizuho Raises Price Target Stifel Raises Price Target
• Positive Sentiment: Additional bullish research notes — Evercore and BMO included positive commentary/forecasts for DLR recently, adding institutional support for the name. Evercore Forecasts Strong Price Appreciation BMO Forecasts Strong Price Appreciation
• Neutral Sentiment: Volume and technicals — Intraday volume was above average and shares recently hit a 12‑month high, indicating active repositioning by investors; moving averages are well below the current price. (See market data sources for details.)
• Negative Sentiment: Valuation is rich — the stock trades at a high P/E (~55x) and elevated PEG (~4.5), which can cap upside and invite profit‑taking even after strong results. This likely helps explain why the share price is trading lower today despite the beats and upgrades.

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.