DLR Stock Forecast & Price Target

Digital Realty Trust is viewed favorably because record demand across hyperscale and colo, combined with scarce supply in hard-to-build markets, supports durable pricing power and longer, higher-quality leases. Its 2Q26 results showed revenue of $1.924B, EBITDA of about $0.978B, and Core-FFO/share of $2.65, all above expectations, while 2026 guidance was raised and leverage stayed at a multi-year low of 4.7x. The company’s $1.8B backlog, 63% pre-leased pipeline, and acquisitions in Kansas City, Teraco, Columbia Capital, and NoVa further strengthen growth visibility, with management expecting multiple years of double-digit Core-FFO/share growth.

Digital Realty Trust is viewed negatively because its revenue base is heavily exposed to physical space leasing, while its top 20 customers contribute just over half of the business, leaving earnings vulnerable to customer loss or weaker hyperscale and enterprise capex tied to AI and cloud infrastructure. The company also faces intense global competition, power supply and pricing risks, and meaningful cybersecurity and regulatory exposure, any of which could pressure occupancy, rental rates, and profitability across its 300 properties in 57 metropolitan areas and 31 countries. On top of that, the stock is particularly sensitive to interest-rate moves, and dilutive acquisitions, dividend cuts, or underperforming assets could further weigh on valuation.