Upside case
Bull case
$480+144.3%
DLR would need investors to value it at roughly 238x earnings — about 140x more generous than today's 97x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
Digital Realty Trust, Inc. (DLR) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
48
analysts
29 bullish · 1 bearish · 48 covering DLR
Strong Buy
1
Buy
28
Hold
18
Sell
1
Strong Sell
0
Consensus Target
$209
+6.3% vs today
Scenario Range
$124 – $480
Model bear to bull value window
Coverage
48
Published analyst ratings
Valuation Context
97.2x
Forward P/E · Market cap $67.6B
DLR price targets
Three scenarios for where DLR stock could go
Current
~$197
Confidence
67 / 100
Updated
May 1, 2026
Where we are now
Current · $197
Bear
$124
Base
$182
Bull
$480
Market caseClosest to today
Base case
$182-7.6%
This is close to how the market is already pricing DLR — at roughly 90x forward earnings. No dramatic re-rating needed, just steady execution on the core business.
Stress case
Bear case
$124-37.0%
If investor confidence fades or macro conditions deteriorate, a 36x multiple contraction could push DLR down roughly 37% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Digital Realty Trust, Inc.
DLR · NYSEReal EstateREIT - OfficeDecember year-end
Digital Realty is a global data center REIT that owns and operates a worldwide network of facilities for enterprise and service provider customers. It generates revenue primarily through long-term leases—mostly colocation and interconnection services—with recurring rental income accounting for the vast majority of its earnings. The company's competitive advantage lies in its massive global footprint—over 284 facilities across 23 countries—which creates network effects and makes it a preferred partner for multinational corporations needing interconnected data infrastructure.
Market Cap
$67.6B
Revenue TTM
$6.2B
Net Income TTM
$1.3B
Net Margin
21.1%
DLR Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
58%Exceptional
12 quarters tracked
Revenue Beat Rate
33%Exceptional
vs consensus estimates
Avg EPS Surprise
+0.9%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 3 of 4Q3 2025
EPS
$1.87/$1.74
Revenue
$1.5B/$1.5B
Q4 2025
EPS
$1.89/$1.78
Revenue
$1.6B/$1.6B
Q1 2026
EPS
$0.24/$0.29
Revenue
$1.6B/$1.6B
Q2 2026
EPS
$0.46/$0.44
Revenue
$1.6B/$1.6B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $1.87/$1.74 | +7.5% | $1.5B/$1.5B | -2.6% |
| Q4 2025 | $1.89/$1.78 | +6.2% | $1.6B/$1.6B | +0.1% |
| Q1 2026 | $0.24/$0.29 | -16.5% | $1.6B/$1.6B | +3.7% |
| Q2 2026 | $0.46/$0.44 | +4.2% | $1.6B/$1.6B | +2.1% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$6.8B
+9.4% YoY
FY2
$7.5B
+10.1% YoY
EPS Outlook
FY1
$3.17
-14.9% YoY
FY2
$3.31
+4.5% YoY
Trailing FCF (TTM)$233M
FCF Margin: 3.8%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
DLR beat EPS estimates in 3 of 4 tracked quarters. A strong delivery record supports forward estimate credibility.
DLR Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $6.1B
Product Mix
Latest annual revenue by segment or product family
Rental And Other Services
97.6%
+8.9% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
51.8%
+8.8% YoY
Tap, hover, or focus a slice to inspect segment detail.
Rental And Other Services is the largest disclosed segment at 97.6% of FY 2025 revenue, up 8.9% YoY.
UNITED STATES is the largest reported region at 51.8%, up 8.8% YoY.
DLR Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Fairly Valued
Fair value est. $199 — implies -0.7% from today's price.
Premium to Fair Value
0.7%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
DLR
54.9x
vs
S&P 500
25.1x
+119% premium
vs Real Estate Trailing P/E
DLR
54.9x
vs
Real Estate
24.1x
+128% premium
vs DLR 5Y Avg P/E
Today
54.9x
vs
5Y Average
63.7x
14% discount
Forward PE
97.2x
S&P 500
19.1x
+410%
Real Estate
26.4x
+269%
5Y Avg
—
—
Trailing PE
54.9x
S&P 500
25.1x
+119%
Real Estate
24.1x
+128%
5Y Avg
63.7x
-14%
PEG Ratio
1.89x
S&P 500
1.72x
+10%
Real Estate
1.25x
+52%
5Y Avg
—
—
EV/EBITDA
34.6x
S&P 500
15.2x
+127%
Real Estate
16.7x
+108%
5Y Avg
28.1x
+23%
Price/FCF
28.0x
S&P 500
21.1x
+33%
Real Estate
15.4x
+82%
5Y Avg
22.5x
+24%
Price/Sales
11.1x
S&P 500
3.1x
+254%
Real Estate
3.0x
+271%
5Y Avg
9.0x
+24%
Dividend Yield
2.50%
S&P 500
1.87%
+34%
Real Estate
4.66%
-46%
5Y Avg
3.44%
-27%
| Metric | DLR | S&P 500 | Real Estate | 5Y Avg DLR |
|---|---|---|---|---|
| Forward PE | 97.2x | 19.1x+410% | 26.4x+269% | — |
| Trailing PE | 54.9x | 25.1x+119% | 24.1x+128% | 63.7x-14% |
| PEG Ratio | 1.89x | 1.72x+10% | 1.25x+52% | — |
| EV/EBITDA | 34.6x | 15.2x+127% | 16.7x+108% | 28.1x+23% |
| Price/FCF | 28.0x | 21.1x+33% | 15.4x+82% | 22.5x+24% |
| Price/Sales | 11.1x | 3.1x+254% | 3.0x+271% | 9.0x+24% |
| Dividend Yield | 2.50% | 1.87% | 4.66% | 3.44% |
DLR trades above S&P 500 benchmarks on 6 of 6 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolDLR Financial Health
Verdict
Adequate
DLR pays 2.5% total shareholder yield with 13.7% operating margin. Leverage is structural for REITs — debt capacity matters more than absolute ratio.
Property Operations
Revenue, margins, and distribution coverage
Revenue (TTM)
Trailing-twelve-month sales base
$6.2B
Revenue Growth
TTM vs prior year
+11.4%
Gross Margin
Gross profit as a share of revenue
40.0%
Operating Margin
Operating income divided by revenue
13.7%
Net Margin
Net income divided by revenue
21.1%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$3.72
Operating Margin
NOI-equivalent margin — key for REIT property economics
13.7%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
1.2%
ROA
Return on assets, trailing twelve months
2.7%
Cash & Equivalents
Liquid assets on the balance sheet
$3.5B
Net Debt
Total debt minus cash
$20.7B
Leverage (Net Debt / FCF)
REITs carry structural leverage — higher ratios are expected
88.9× FCF
Asset-heavy model means debt/FCF above 10× is common and not a distress signal.
ROE *
Return on equity, trailing twelve months
5.3%
* Elevated by buyback-compressed equity — compare ROIC (1.2%) for an undistorted picture of capital efficiency.
Shareholder Returns
How capital is returned to owners
Total shareholder yield
2.5%
Dividend
2.5%
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
$4.92
Payout Ratio
Share of earnings distributed as dividends
132.1%
Shares Outstanding
Current diluted share count
344M
All figures from the trailing twelve months. REITs carry structural leverage — debt/FCF ratios above 10× are normal and do not indicate distress.
Open full ratios pageDLR Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 11, 2026
High Risk
Real Estate Market Volatility
A downturn in the real estate market could force DLR to reassess its impairment assumptions, potentially leading to significant impairment charges that adversely affect its financial condition and cash available for distribution. The illiquid nature of specialized real estate and a limited buyer pool can also hinder the company’s ability to sell properties quickly in response to adverse performance changes.
High Risk
Interest Rate Sensitivity
As a REIT, DLR is susceptible to rising interest rates, which increase capital costs. The company’s significant debt load and substantial debt maturing in the coming years may need to be refinanced at higher costs if rates remain elevated.
Medium
Regulatory and Legal Risks
DLR may face significant costs in complying with various laws and governmental regulations, including the Americans with Disabilities Act. Additionally, their contracts with customers could expose them to substantial liability.
Medium
Environmental and Social Risks
The company could incur considerable expenses related to environmental matters, stemming from government regulations, private lawsuits, and existing conditions at their properties.
Medium
Profitability and Operational Efficiency
While revenue growth is positive, DLR’s profitability has been inconsistent, with a negative gross margin reported in one quarter, highlighting potential operational cost pressures.
Lower
Dividend Sustainability
DLR’s dividend payout ratio has been above 75%, which is not considered sustainable. While future estimates suggest a lower payout ratio, this remains a point of consideration.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why DLR Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 11, 2026
AI and Cloud Demand Surge
Digital Realty’s data center capacity is being driven by surging demand for AI workloads and hyperscale cloud customers. The company’s PlatformDIGITAL infrastructure positions it to capture this growth as enterprises migrate to private AI and cloud services.
Global Footprint and Scalability
DLR’s extensive global presence and PlatformDIGITAL capabilities enable scalable, secure data center solutions across regions. This geographic reach supports enterprise clients seeking multi‑region deployments and redundancy.
Strategic Partnerships with Tech Leaders
Collaborations with Dell Technologies, DXC Technology, and Nvidia strengthen DLR’s market position and accelerate private AI adoption. These partnerships provide access to cutting‑edge technology and joint customer pipelines.
Leasing Momentum and Long Terms
The company maintains a strong leasing backlog and consistently secures new leases, with a weighted average lease term of 7.7 years for new contracts. This long‑term commitment drives stable cash flow and occupancy.
Financial Stability and Scale
DLR’s market capitalization exceeds $60 billion, offering sector stability. Despite a high P/E, the firm’s robust cash flow and high occupancy rates are viewed as attractive fundamentals.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
DLR Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$196.69
52W Range Position
82%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$146.23
+34.5% from the low
52-Week High
$208.09
-5.5% from the high
1 Month
+8.08%
3 Month
+19.46%
YTD
+26.9%
1 Year
+18.0%
3Y CAGR
+26.8%
5Y CAGR
+5.5%
10Y CAGR
+8.0%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
DLR vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
97.2x
vs 43.0x median
+126% above peer median
Revenue Growth
+9.4%
vs +3.6% median
+161% above peer median
Net Margin
21.1%
vs 25.1% median
-16% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
DLR DLR Digital Realty Trust, Inc. | $67.6B | 97.2x | +9.4% | 21.1% | Buy | +6.3% |
EQI EQIX Equinix, Inc. | $106.4B | 63.7x | +7.6% | 15.0% | Buy | +3.6% |
IRM IRM Iron Mountain Incorporated | $39.2B | 58.4x | +10.8% | 3.8% | Buy | +0.5% |
AMT AMT American Tower Corporation | $83.0B | 27.2x | +3.6% | 26.6% | Buy | +21.5% |
CCI CCI Crown Castle Inc. | $38.9B | 43.0x | -18.0% | 25.1% | Buy | +18.3% |
SBA SBAC SBA Communications Corporation | $23.1B | 29.2x | +3.0% | 35.7% | Buy | +5.9% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
DLR Dividend and Capital Return
DLR returns 2.5% total yield, led by a 2.50% dividend.
Dividend SustainableFCF Stretched
Total Shareholder Yield
2.5%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
2.50%
Payout Ratio
1.3%
How DLR Splits Its Return
Div 2.50%
Dividend 2.50%Buybacks 0.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$4.92
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
0.0%
5Y Div CAGR
1.7%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$0
Estimated Shares Retired
0
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
344M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $1.22 | — | — | — |
| 2025 | $4.88 | 0.0% | 0.0% | 3.2% |
| 2024 | $4.88 | 0.0% | 0.0% | 2.8% |
| 2023 | $4.88 | 0.0% | 0.0% | 3.7% |
| 2022 | $4.88 | +5.2% | 0.0% | 4.9% |
FAQ
7 questionsDLR Investor Questions
Common questions answered from live analyst data and company financials.
01Is Digital Realty Trust, Inc. (DLR) stock a buy or sell in 2026?
Digital Realty Trust, Inc. (DLR) is rated Buy by Wall Street analysts as of 2026. Of 48 analysts covering the stock, 29 rate it Buy or Strong Buy, 18 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $209, implying +6.3% from the current price of $197. The bear case scenario is $124 and the bull case is $480.
02What is the DLR stock price target for 2026?
The Wall Street consensus price target for DLR is $209 based on 48 analyst estimates. The high-end target is $235 (+19.5% from today), and the low-end target is $180 (-8.5%). The base case model target is $182.
03Is Digital Realty Trust, Inc. (DLR) stock overvalued in 2026?
DLR trades at 97.2x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals fairly valued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Digital Realty Trust, Inc. (DLR) stock in 2026?
The primary risks for DLR in 2026 are: (1) Real Estate Market Volatility — A downturn in the real estate market could force DLR to reassess its impairment assumptions, potentially leading to significant impairment charges that adversely affect its financial condition and cash available for distribution. (2) Interest Rate Sensitivity — As a REIT, DLR is susceptible to rising interest rates, which increase capital costs. (3) Regulatory and Legal Risks — DLR may face significant costs in complying with various laws and governmental regulations, including the Americans with Disabilities Act. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Digital Realty Trust, Inc.'s revenue and earnings forecast?
Analyst consensus estimates DLR will report consensus revenue of $6.8B (+9.4% year-over-year) and EPS of $3.17 (-14.9% year-over-year) for the upcoming fiscal year. The following year, analysts project $7.5B in revenue.
06When does Digital Realty Trust, Inc. (DLR) report its next earnings?
A confirmed upcoming earnings date for DLR is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Digital Realty Trust, Inc. generate?
Digital Realty Trust, Inc. (DLR) generated $233M in free cash flow over the trailing twelve months — a free cash flow margin of 3.8%. DLR returns capital to shareholders through dividends (2.5% yield) and share repurchases ($0 TTM).