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Is DLR Stock a Smart Buy Before Q1 Earnings Release?
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Key Takeaways
Digital Realty is set to report Q1 2026 results with expected revenue and FFO growth.
DLR benefits from strong data center demand, AI growth and rising leasing activity.
Revenues seen up 14.3% YoY, with rental income rising 13% and interconnection up 10.6%.
Digital Realty Trust (DLR - Free Report) is slated to report first-quarter 2026 results on April 23, after the closing bell. The quarterly results are expected to reflect year-over-year growth in both revenues and funds from operations (FFO) per share.
This Austin, TX-based data center real estate investment trust (REIT) reported a core FFO per share of $1.86 in the prior quarter, surpassing the Zacks Consensus Estimate of $1.83. Results reflected steady leasing momentum with better rental rates amid rising demand.
Over the trailing four quarters, Digital Realty’s core FFO per share surpassed the Zacks Consensus Estimate on all occasions, with the average beat being 4.40%. This is depicted in the chart below:
Digital Realty Trust is well-positioned to benefit from its expansive global data center platform amid accelerating digital transformation, cloud adoption and the rapid proliferation of artificial intelligence. Robust demand for data center capacity, particularly in connectivity-rich and power-constrained markets, is expected to have supported leasing activity in the first quarter of 2026, aiding revenue growth.
The company continues to capitalize on favorable industry dynamics, including rising demand for hyperscale and enterprise high-density deployments. With customers increasingly seeking scalable, AI-ready infrastructure, Digital Realty’s focus on advanced capabilities such as liquid cooling and interconnection-driven solutions is likely to have strengthened its competitive positioning and supported leasing momentum during the quarter.
DLR’s ongoing investments in land, development and strategic acquisitions are expected to have enhanced its growth prospects. Its expanding footprint across key global markets positions the company to capture incremental demand.
For the first quarter, the Zacks Consensus Estimate for rental revenues is pegged at $1.09 billion, up 13% from $960.5 million reported in the year-ago quarter. The Zacks Consensus Estimate for interconnection & other revenues currently stands at $125 million, indicating a projected increase of 10.6% from the year-ago quarter.
The consensus estimate for quarterly total revenues is pegged at $1.61 billion, suggesting a year-over-year jump of 14.30%.
Digital Realty’s activities in the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the company’s quarterly FFO per share has remained unchanged at $1.94 over the past two months. However, the figure indicates year-over-year growth of 9.60%.
What Our Quantitative Model Predicts for DLR
Our proven model does not conclusively predict a surprise in terms of FFO per share for Digital Realty this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Digital Realty currently has an Earnings ESP of 0.00% and carries a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector — BXP, Inc. (BXP - Free Report) and Cousins Properties (CUZ - Free Report) — you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
Cousins Properties, slated to release quarterly numbers on April 29, has an Earnings ESP of +0.94% and carries a Zacks Rank of 3 at present.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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Is DLR Stock a Smart Buy Before Q1 Earnings Release?
Key Takeaways
Digital Realty Trust (DLR - Free Report) is slated to report first-quarter 2026 results on April 23, after the closing bell. The quarterly results are expected to reflect year-over-year growth in both revenues and funds from operations (FFO) per share.
This Austin, TX-based data center real estate investment trust (REIT) reported a core FFO per share of $1.86 in the prior quarter, surpassing the Zacks Consensus Estimate of $1.83. Results reflected steady leasing momentum with better rental rates amid rising demand.
Over the trailing four quarters, Digital Realty’s core FFO per share surpassed the Zacks Consensus Estimate on all occasions, with the average beat being 4.40%. This is depicted in the chart below:
Digital Realty Trust, Inc. Price and EPS Surprise
Digital Realty Trust, Inc. price-eps-surprise | Digital Realty Trust, Inc. Quote
Factors at Play and Projections for DLR
Digital Realty Trust is well-positioned to benefit from its expansive global data center platform amid accelerating digital transformation, cloud adoption and the rapid proliferation of artificial intelligence. Robust demand for data center capacity, particularly in connectivity-rich and power-constrained markets, is expected to have supported leasing activity in the first quarter of 2026, aiding revenue growth.
The company continues to capitalize on favorable industry dynamics, including rising demand for hyperscale and enterprise high-density deployments. With customers increasingly seeking scalable, AI-ready infrastructure, Digital Realty’s focus on advanced capabilities such as liquid cooling and interconnection-driven solutions is likely to have strengthened its competitive positioning and supported leasing momentum during the quarter.
DLR’s ongoing investments in land, development and strategic acquisitions are expected to have enhanced its growth prospects. Its expanding footprint across key global markets positions the company to capture incremental demand.
For the first quarter, the Zacks Consensus Estimate for rental revenues is pegged at $1.09 billion, up 13% from $960.5 million reported in the year-ago quarter. The Zacks Consensus Estimate for interconnection & other revenues currently stands at $125 million, indicating a projected increase of 10.6% from the year-ago quarter.
The consensus estimate for quarterly total revenues is pegged at $1.61 billion, suggesting a year-over-year jump of 14.30%.
Digital Realty’s activities in the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the company’s quarterly FFO per share has remained unchanged at $1.94 over the past two months. However, the figure indicates year-over-year growth of 9.60%.
What Our Quantitative Model Predicts for DLR
Our proven model does not conclusively predict a surprise in terms of FFO per share for Digital Realty this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Digital Realty currently has an Earnings ESP of 0.00% and carries a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector — BXP, Inc. (BXP - Free Report) and Cousins Properties (CUZ - Free Report) — you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
BXP, scheduled to report quarterly numbers on April 28, has an Earnings ESP of +0.17% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cousins Properties, slated to release quarterly numbers on April 29, has an Earnings ESP of +0.94% and carries a Zacks Rank of 3 at present.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.