DLR

AI Research

DLR Revenue +13.8% YoY → FY2026 FFO Guide $7.90-$8.00 on AI Data Center Demand Surge

Digital Realty reported revenue growth of 13.8% year-over-year, fueled by record AI workload demand driving data center leasing activity to all-time highs with hyperscaler pre-commitments filling capacity pipelines. Management guided FY2026 FFO per share to $7.90-$8.00 and declared a quarterly dividend of $1.22 per share payable March 31, reflecting strong forward visibility from long-term customer contracts. Risks include elevated leverage ratios and rising construction costs that could compress returns on new development projects in an increasingly competitive data center market.