Digital Realty's Stock Soars 26.8% After Record Earnings Beat

With a market cap of $61.9 billion, Digital Realty Trust, Inc. (DLR) is a global provider of data center, colocation, and interconnection solutions, serving a wide range of industries including cloud services, finance, healthcare, and technology. As of December 31, 2025, the company operates a vast portfolio of over 300 data centers across multiple continents, supporting critical digital infrastructure for enterprises worldwide.

The Dallas, Texas-based company is expected to release its fiscal Q1 2026 results soon. Ahead of this event, analysts project DLR to report core FFO per share of $1.94, a 9.6% rise from $1.77 in the year-ago quarter. It has exceeded Wall Street's bottom-line estimates in the past four quarters.

For fiscal 2026, analysts forecast the REIT to report core FFO per share of $7.94, up 7.4% from $7.39 in fiscal 2025. In addition, core FFO per share is anticipated to grow 8.9% year-over-year to $8.65 in fiscal 2027.

DLR stock has increased 26.8% over the past 52 weeks, outpacing the broader S&P 500 Index's (SPX) nearly 17% gain and the State Street Real Estate Select Sector SPDR ETF's (XLRE) 1.4% decline over the same time frame.

Shares of Digital Realty Trust rose 4.2% following its Q4 2025 results on Feb. 5, with core FFO per share rising to $1.86 from $1.73. Investor sentiment was further boosted by solid growth and demand indicators, including 14% year-over-year revenue growth to $1.6 billion, $400 million in total bookings, and a sizable $817 million backlog of annualized base rent.

Analysts' consensus view on DLR stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 32 analysts covering the stock, 20 suggest a "Strong Buy," two give a "Moderate Buy," and 10 recommend a "Hold." The average analyst price target for Digital Realty Trust is $196.46, indicating a potential upside of 9% from the current levels.