Digital Realty Trust, Inc. (DLR)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for assets that are hard to copy and cash flows I can understand. Digital Realty owns data centers and interconnection hubs, and cloud and AI demand gives it a real runway. The filed figures show growth: in fiscal year 2025, the year ended 2025-12-31, revenue was $6.1B versus $5.6B in fiscal year 2024, the year ended 2024-12-31, and $5.5B in fiscal year 2023, the year ended 2023-12-31. Net income in fiscal year 2025 was $1.3B after $602.5M in fiscal year 2024. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $1.6B and net income $179.3M, a 10.96% margin. Results are lumpy - fiscal Q2 2025, the quarter ended 2025-06-30, had $1.0B of net income, while fiscal Q3 2025, the quarter ended 2025-09-30, had only $67.8M - but depreciation makes REIT EPS noisy. FFO/AFFO, the right REIT measures, are not in the data, so I lean on the 2.68% dividend yield, debt-to-equity of 0.68, and price-to-book of 2.47, a FairStock calculation tied to the 2026-10-13 close. The FairStock P/E is 86.48 and EV/EBITDA is 20.78, both demanding. The Altman Z-Score is 1.66, suggesting financial risk, and ROE is only 2.91%. Still, the Piotroski F-Score is 8/9, free cash flow is $2.5B, and the computed Lynch category is Stalwart, based on 29.7% annual profit growth over five years and 9.4% revenue growth. Solid business, but not a bargain.

In plain English: Digital Realty owns and operates data centers and connection hubs that companies use to store and move data. The business looks steady: revenue has grown and profits jumped in the latest full year, but the latest quarter's profit margin was thin and the stock looks expensive against those profits. Because it is a real estate company, the usual profit number can be misleading, and the better property-level profit measures are not in this data.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer