10-Q · May 1, 2026
Digital Realty Trust, Inc. reported strong Q1 2026 results with revenues of $1.635 billion, up 16.2% year-over-year, exceeding estimates by 2%. However, diluted EPS at $2.04 beat estimates by $0.10 but showed…
Earnings analysis · 10-Q
DLR earnings analysis
Filed October 30, 2026 · Our reading of the company's report
The latest report
Digital Realty reported $1.902 billion of Q3 revenue and $2.10 of EPS/Core FFO, with revenue up approximately 20.4% year over year and EPS well above both Q2 2026 and Q3 2025. The balance sheet remains debt-intensive at…
Read full summary
Digital Realty reported $1.902 billion of Q3 revenue and $2.10 of EPS/Core FFO, with revenue up approximately 20.4% year over year and EPS well above both Q2 2026 and Q3 2025. The balance sheet remains debt-intensive at $19.619 billion, but $17.481 billion was fixed-rate or hedged, limiting direct exposure to floating rates. The 10-Q provides no new numeric guidance and states that the 2025 10-K risk factors continue to apply.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.1
- Gross margin
- 100.0%
What stood out
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Revenue up 20% year over year
Revenue was $1.902 billion, up approximately 20.4% from $1.58 billion in Q3 2025, although it declined approximately 0.9% from $1.92 billion in Q2 2026.
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EPS materially exceeded prior periods
Reported EPS/Core FFO was $2.10 versus $1.21 in Q2 2026 and $0.15 in Q3 2025, representing sequential growth of approximately 73.6% and year-over-year growth of approximately 1,300%.
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Debt largely protected from rates
The company had $19.619 billion of total outstanding debt at September 30, 2026, including $17.481 billion classified as fixed-rate debt after interest-rate swaps.
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Limited unhedged rate exposure
Only $2.138 billion of debt was variable rate and not subject to swaps; the filing estimates that a 10% increase in interest rates would increase annual interest expense by $8 million.
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Debt structure clearly disclosed
Fixed-rate debt had a balance of $14.022 billion and an estimated fair value of $12.939 billion, providing visibility into the company’s principal debt exposure.
What to watch
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High absolute leverage and refinancing risk
Total outstanding debt was $19.619 billion with an estimated fair value of $18.536 billion. Although $17.481 billion was fixed-rate or swapped, refinancing and valuation risk remain material given the debt scale.
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Interest-rate valuation sensitivity
A 10% decrease in interest rates would increase the fair value of fixed-rate debt by $240 million, while a 10% increase would decrease it by $224 million, indicating meaningful rate sensitivity in the debt portfolio.
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No risk-factor refresh; entity-control limits
The filing states that the risk factors in the 2025 Form 10-K continue to apply, with no material new risk-factor changes disclosed. The company also notes that controls over unconsolidated entities may be substantially more limited; total consolidated assets were approximately $56.5 billion.
Management's outlook
The 10-Q does not provide new quantitative revenue or EPS guidance. Prior 2026 Core FFO guidance of $8.30-$8.35 per share was disclosed in the October 29, 2026 earnings release, not in the extracted 10-Q text.
Earlier filings 4
10-K · February 13, 2026
Digital Realty emphasizes PlatformDIGITAL® and its scale-driven moat: a 310-facility global footprint supporting ~57.6 million rentable square feet, ~232,000 cross connects and ~2.9 GW of in-place IT capacity. Q4 2025…
10-Q · November 1, 2024
Digital Realty reported Q3 operating revenues of $1,431,214,000 (up from $1,402,432,000 a year ago) and operating income of $168,286,000 (vs. $58,226,000 in Q3 2023). GAAP diluted EPS collapsed to $0.09 (Q3 2023 diluted…
10-K · February 23, 2024
Digital Realty positions itself as the largest global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, operating 309 data centers across 28 countries and managing…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.