Digital Realty Trust (DLR) Soars 3.99% on Strong Q1 Earnings

Digital Realty Trust (DLR) shares surged 3.99% on April 25, 2025, marking the fourth consecutive day of gains and a 9.25% increase over the past four days. The stock price reached its highest level since February 2025, with an intraday gain of 6.98%.

Digital Realty Trust's strong first-quarter financial performance for 2025 played a significant role in the stock surge. The company reported quarterly funds from operations (FFO) of $1.77 per share, surpassing the Zacks Consensus Estimate of $1.73 per share. Additionally, the company generated Adjusted EBITDA of $791 million, reflecting a 5% increase from the previous quarter and an 11% increase year-over-year.

Another key factor contributing to the stock price increase was the announcement of a $10 billion U.S. Hyperscale Data Center Fund. This strategic investment is expected to enhance returns through fee generation and open up further investment opportunities, signaling strong future growth prospects for the company.

Analysts have also expressed confidence in Digital Realty Trust's future performance. Jefferies analyst Jonathan Petersen maintained a Buy rating on the stock with a price target of $193.00. The average target price from analysts suggests an upside of 15.51% from the current stock price, indicating positive sentiment among market experts.