Digital Realty Trust, Inc. (NYSE: DLR) Q2 2025 Earnings | 07/25/2025

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Digital Realty Trust, Inc. delivered a standout Q2 2025, reporting results that surpassed market expectations and set multiple company records. Revenue reached $1.49 billion, marking an 11% year-over-year increase, driven by surging demand in AI and cloud computing, and a major boost in both lease commencements and new bookings. Earnings per share (EPS) came in at $2.94, a dramatic beat over the expected $0.41, while core funds from operations (FFO) per share rose 13% to a record $1.87—ahead of guidance and consensus estimates. Adjusted EBITDA also climbed 13% compared to last year, underscoring robust underlying operating leverage and efficient execution. Same capital cash NOI advanced 4.4% year-over-year. The company recorded $177 million in new bookings this quarter, with $135 million attributable to Digital Realty’s share. A particular highlight was the $90 million in bookings within the “zero to one megawatt plus interconnection” product set, reflecting a broad-based increase in demand from customers across the Americas, EMEA, and APAC. Total lease commencements for the quarter amounted to a record $220 million, and the leasing backlog ended at $826 million. Management noted that 139 new customer logos were added, supporting the company’s strategy of global client diversification. At the same time, renewal leasing rose 7.3% on a cash basis. Operationally, Digital Realty invested over $900 million in development capital expenditures and delivered 96 MW of new capacity—98% of which was already pre-leased. Its development pipeline now stands at $9 billion, expected to yield a stabilized return of 12.2%. Liquidity remained strong, with more than $7 billion available and leverage at 5.1x, below targeted thresholds. The company’s land bank now provides a platform for up to 5 gigawatts of additional capacity, supporting its long-term growth ambitions. Looking forward, management raised full-year 2025 core FFO guidance to $7.15–$7.25 per share, reflecting rising confidence in its growth trajectory and the sustained momentum from AI and cloud infrastructure expansion. The executive team highlighted continued focus on major market opportunities, disciplined capital allocation, and the ongoing rollout of a $10 billion hyperscale data center fund. Risks cited include potential supply chain delays, macroeconomic pressures, market competition, and evolving data privacy regulation, but management expressed strong optimism about the company’s long-term outlook. About Inside Ticker: For more expert analysis and real-time updates on Digital Realty Trust, Inc. (NYSE: DLR) and other market movers, follow Inside Ticker and visit http://www.insideticker.com/ for in-depth reports, financial insights, and the latest news on leading companies. #DigitalRealty #DLR #Q22025 #Earnings #FinancialResults #DataCenters #AI #CloudComputing #RevenueGrowth #NetIncome #EPS #CoreFFO #AdjustedEBITDA #LeaseBookings #DevelopmentPipeline #CAPEX #ShareholderReturns #StockMarket #InsideTicker #OperationalExcellence #Guidance #2025Outlook #Hyperscale #Interconnection #GlobalExpansion #CustomerGrowth #PlatformLeadership