Digital Realty stock climbs on a Buy call and record backlog
Published on 08/18/2026 at 11:02 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Digital Realty Trust, Inc. (ISIN US2538681030) stock is trading around $198.36 after opening at that level on August 18, 2026, with a market cap of $73.40 billion and a 52-week range of $146.23 to $208.14. The latest company update also showed second-quarter 2026 revenue of $1.92 billion and EPS of $1.21, while the consensus estimate for EPS was $1.98.
Analysts lift the bar
HSBC upgraded Digital Realty to Buy from Hold and said the company is now guided for double-digit core funds from operations per share growth over multiple years, up from at least mid-single digit growth last year. The same update said 2026 capital expenditure guidance has risen by 29% at the midpoint since the start of the year, while the backlog stands at 30% of current revenues.
That backdrop gives the stock a clear comparison point: the shares are close to the top of the 52-week band, yet the current P/E ratio is 96.29 and the consensus target price cited in the market data is $219.13. The tension between fast growth expectations and a high multiple is now the central valuation question.
What the quarter showed
The second-quarter 2026 report on July 23, 2026 delivered $1.92 billion in revenue, up 28.9% year over year, but EPS of $1.21 came in $0.77 below the $1.98 consensus. Digital Realty also reported a net margin of 11.80% and return on equity of 3.34% for the quarter.
HSBC added that the company has 1.4 gigawatts of capacity under construction and a 9-gigawatt development pipeline, up from 6 gigawatts in the first quarter. HSBC also estimated that marking total large power block capacity to market rates would add $870 million in annual revenue, equal to 20% of second-quarter 2026 annualized recurring revenue.
Data centers and scale
Digital Realty Trust operates carrier-neutral data centers and interconnection services across wholesale and retail colocation, with large power blocks and build-to-suit capacity at the center of the model. The business now pairs that operating scale with a $1.9 billion backlog and a 2026 guidance reset that points to stronger earnings leverage.
Shares near range highs
As of August 18, 2026, the shares were at $198.36, versus a 1-year high of $208.14 and a 1-year low of $146.23. The move leaves the stock inside the upper part of its yearly range as investors weigh the upgraded outlook against the elevated earnings multiple.
Fact box
Company: Digital Realty Trust, Inc.
ISIN: US2538681030
Ticker: DLR
Exchange: NYSE
Price (as of August 18, 2026): $198.36 USD
Market cap: $73.40 billion
Sector / Industry: Real Estate / Data Center REIT
Index membership: S&P 500
