Digital Realty Trust Q2 Earnings: What to Expect From the Stock?

Digital Realty Trust (DLR) is set to report Q2 2025 earnings on July 24, with expected year-over-year growth in revenues and funds from operations (FFO) per share. The company's global presence and growing demand for data centers are expected to drive its top line, with a projected increase of 6.4% in total revenues to $1.44 billion. The Zacks Consensus Estimate for FFO per share has remained unchanged at $1.74, indicating a 5.5% year-over-year increase.

Digital Realty Trust (DLR), a leading data center real estate investment trust (REIT), is set to report its second-quarter 2025 earnings on July 24. Analysts expect the company to deliver year-over-year growth in both revenues and funds from operations (FFO) per share. The Austin, TX-based company has been consistently exceeding Zacks Consensus Estimates, reflecting steady leasing momentum and better rental rates amid rising demand.

The Zacks Consensus Estimate for Q2 2025 total revenues is projected to reach $1.44 billion, indicating a 6.4% year-over-year increase. This growth is primarily driven by the company's global presence and the increasing demand for data centers, particularly from industries leveraging artificial intelligence (AI) and high-performance computing (HPC). Digital Realty's extensive portfolio includes 308 data centers in more than 50 metropolitan areas, with a tenant roster that includes major tech companies like IBM, Oracle, LinkedIn, Meta Platforms, and Comcast.

The Zacks Consensus Estimate for FFO per share has remained unchanged at $1.74, reflecting a 5.5% year-over-year increase. This figure suggests that while the company has experienced steady growth, analysts are cautious about the impact of higher operating expenses on profitability. Digital Realty's core FFO per share in the prior quarter was $1.77, surpassing the Zacks Consensus Estimate of $1.73, demonstrating the company's ability to meet and exceed expectations.

The company's strong global footprint and diverse customer base position it well for continued growth. Over the trailing four quarters, Digital Realty's core FFO per share has exceeded the Zacks Consensus Estimate on three occasions and met once, with an average beat of 1.33%. This track record indicates a consistent ability to deliver strong financial results.

While the Zacks Consensus Estimate for FFO per share has remained unchanged, the company's quantitative model predicts a surprise in terms of FFO per share for Digital Realty this season. The combination of a positive Earnings ESP and a Zacks Rank of 2 increases the chances of an FFO beat, which aligns with the company's historical performance.

In summary, Digital Realty Trust is expected to report strong Q2 2025 earnings, driven by its global presence and the growing demand for data centers. Despite higher operating expenses, the company's consistent ability to meet and exceed analyst expectations suggests that investors should remain optimistic about its future prospects.

References:
[1] https://www.tradingview.com/news/zacks:36fcf37cb094b:0-digital-realty-to-post-q2-earnings-what-to-expect-from-the-stock/
[2] https://flex.com/resources/unlocking-data-center-growth-through-the-convergence-of-power-and-compute