Digital Realty Trust Inc. – Third‑Quarter 2026 Results and Analyst Outlook

Digital Realty Trust Inc. (NYSE: DLR) reported its third‑quarter 2026 financial results on October 29, 2026. The company’s performance exceeded analyst expectations across profitability, revenue, and cash‑based rental growth.

Earnings and Profitability

  • Net income available to common shareholders: $0.48 per share, compared with $0.15 per share in the same quarter of 2025.
  • Funds from operations (FFO) per share: $1.97 in 3Q26, up from $1.65 in 3Q25.
  • Core FFO per share: $2.10 in 3Q26, versus $1.89 in 3Q25.
  • FFO guidance for FY 2026: $8.30 – $8.35 per share (excluding net promote).

Revenue and Booking Highlights

  • Revenue: $1.902 billion, a 20.6 % increase YoY from $1.577 billion.
  • Record total bookings: $627 million (Digital Realty’s share), including $152 million in the 0‑1 MW interconnection segment.
  • Record backlog: $1.8 billion of annualized GAAP base rent at Digital Realty’s share, up from $1.5 billion in 3Q25.
  • Cash‑based rental rate growth: 11.8 % on renewal leases.

Guidance and Market Reactions

  • Full‑year EPS guidance: $2.90 – $2.95.
  • Full‑year revenue guidance: $7.050 billion – $7.125 billion.

Analyst sentiment has been mixed following the earnings release.

  • Goldman Sachs increased its price target on the basis of record bookings and strong cash‑flow generation.
  • Freedom Broker lowered its target valuation due to a higher weighted average cost of capital (WACC) assessment.
  • Investing.com and de.investing.com reported the same Freedom Broker adjustment, reflecting a broader consensus on the impact of capital costs.

Summary

Digital Realty Trust’s third‑quarter results demonstrate robust growth in revenue, profitability, and booking volumes. While the company’s earnings surpass consensus and its guidance remains bullish, differing views on valuation, particularly regarding WACC, have led to a split in analyst targets. The market will continue to monitor the company’s ability to convert record bookings into sustainable revenue streams and to manage capital structure costs in the coming fiscal year.