Data center operator Digital Realty Trust's Q3 revenue rises 21%, core FFO up; lifts 2026 outlook

Overview

• Data center operator's Q3 revenue rose 21% yr/yr

• Core FFO per share increased to $2.10 from $1.89 a year earlier

• Company raised 2026 Core FFO per share outlook

Outlook

• Digital Realty raises 2026 Core FFO per share outlook to $8.30-$8.35

• Company expects 2026 total revenue of $7.05-$7.13 bln, excluding promote income

• Digital Realty forecasts 2026 adjusted EBITDA of $3.8-$3.85 bln

Result Drivers

• RECORD LEASING - Co reported record leasing activity in Q3, driving future rental revenue

• RENTAL RATE INCREASES - Co achieved 11.8% cash rental rate increases on renewal leases in Q3

• EXPANDED BACKLOG - Co ended Q3 with a record backlog of signed-but-not-commenced leases

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 31 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy"

• Wall Street's median 12-month price target for Digital Realty Trust, Inc. is $224.00, about 24.6% above its October 28 closing price of $179.77

• The stock recently traded at 67 times the next 12-month earnings vs. a P/E of 76 three months ago

Reuters Recommended Reads

• Oct 27 - American Tower beats Q3 estimates on data center strength, raises FY outlook

• Oct 28 - TPG pursues $5 billion acquisition of British data centre group Ark, FT reports

• Oct 29 - Wall Street's AI bet: Own the infrastructure, collect the rent

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)