Digital Realty Misses Q4 EPS by 17% but Beats Revenue, Liquidity Hits $7B
Digital Realty reported Q4 EPS of $0.24, missing estimates of $0.29 by 17% while revenue rose to $1.63 billion, beating forecasts of $1.58 billion. TD Cowen raised its price target to $185 and Citi cut its target to $190, as bookings reached $400 million and year-end liquidity stood at $7 billion.
1. Q4 Financial Results
Digital Realty reported Q4 2025 EPS of $0.24, missing the $0.29 consensus by 17%, while revenue rose 3.2% year-over-year to $1.63 billion, surpassing the $1.58 billion forecast. The company booked $400 million in Q4 and $1.2 billion for the full year, generated 4.5% same-capital cash NOI growth, and ended the year with $7 billion in liquidity.
2. Analyst Price Target Adjustments
TD Cowen boosted its price target to $185 from $179 and maintained a Hold rating, citing strong Q4 results and potential for improved renewal spreads through 2026. Meanwhile, Citi lowered its target to $190 from $212 but kept a Buy rating, reflecting progress in bookings and funding alongside adjusted valuation multiples.
3. Strategic Growth and Capacity
Digital Realty operates over 300 data centers across more than 55 metro areas, with 3 gigawatts of IT capacity in place and 769 megawatts under construction. In 2025, the company expanded into Indonesia and Malaysia, launched its Private AI Exchange, raised $3.2 billion in a private capital fund, and holds over $15 billion available for hyperscale development with more than 5 gigawatts of future capacity planned.