<div id="readability-page-1"><div><p>Digital Realty Trust (DLR) just delivered better than expected earnings and raised its full year guidance, a timely update as it pours capital into AI ready data centers and deepens partnerships such as its new Oracle Cloud connectivity in Singapore.</p> <p>See our latest analysis for Digital Realty Trust.</p> <p>Those stronger earnings and fresh Oracle initiatives come after a choppy stretch, with the share price down 8.05% year to date. Yet a 62.91% three year total shareholder return shows long term momentum is still very much intact.</p> <p>If AI ready infrastructure is on your radar, now is a good moment to see how Digital Realty compares with other high growth tech and AI stocks that could benefit from the same demand wave.</p> <p>With shares still below analyst targets despite upgraded guidance and accelerating AI investments, investors face a key question: is this a rare chance to buy Digital Realty at a discount, or is the market already pricing in its future growth?</p> <h2>Most Popular Narrative: 18.3% Undervalued</h2> <p>Digital Realty Trust's most followed narrative pegs fair value at about $199.22 per share versus a last close of $162.76. This frames a sizable upside gap.</p> <blockquote> <p><em>The successful formation of Digital Realty's first U.S. hyperscale fund is expected to fuel future growth with up to $10 billion in investments, leading to enhanced revenue and returns through fees, highlighting its significant potential impact on long term earnings sustainability.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>Curious how one aggressive growth pipeline, shrinking margins, and a lofty future earnings multiple can still add up to a higher fair value? The narrative walks through the exact revenue path, profitability reset, and valuation bridge that justify this target.</p> <p><strong>Result: Fair Value of $199.22 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, supply potentially outpacing demand in key U.S. markets and higher financing costs could undermine leasing momentum and pressure Digital Realty's long-term margin profile.</p> <p>Find out about the key risks to this Digital Realty Trust narrative.</p> <h2>Another Lens on Valuation</h2> <p>Analysts and narratives see upside, but our valuation checks flag a riskier picture. Digital Realty trades on a 41.1x price to earnings ratio versus a 27.9x industry average and a fair ratio of 28.9x, suggesting investors are already paying up for future AI growth.</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/4dd44010-f20c-4335-b9f8-39a840f24645/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/4dd44010-f20c-4335-b9f8-39a840f24645/chart/pe-multiple-vs-industry"/><figcaption>NYSE:DLR PE Ratio as at Dec 2025</figcaption></figure><h2> Build Your Own Digital Realty Trust Narrative</h2> <p>If you see the numbers differently or want to stress test your own assumptions, build a personalized view of Digital Realty in just minutes, Do it your way.</p> <p>A great starting point for your Digital Realty Trust research is our analysis highlighting 5 key rewards and 3 important warning signs that could impact your investment decision.</p> <h2>Ready for more investment ideas?</h2> <p>Use the Simply Wall St Screener to pinpoint fresh opportunities that match your strategy, so you are not relying on just one AI infrastructure story.</p> <ul> <li>Capture potential turnaround stories by targeting these 3589 penny stocks with strong financials that pair low share prices with improving fundamentals and room for re-rating.</li> <li>Position ahead of the next technology wave by focusing on these 27 AI penny stocks that could benefit as AI infrastructure and applications scale globally.</li> <li>Lock in attractive entry points with these 894 undervalued stocks based on cash flows that our models flag as trading below their estimated intrinsic value.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p></div></div>

<p>Digital Realty Trust (DLR) reported better-than-expected earnings, raised full-year guidance, and is expanding AI-ready data centers. Despite a share price drop, long-term returns remain strong. Analysts see DLR as undervalued with a fair value of $199.22 per share, suggesting upside potential. However, high PE ratio and market risks could impact future growth. Investors are encouraged to evaluate DLR's valuation and growth prospects amid AI infrastructure expansion.</p>

Digital Realty (DLR): Valuation Check After Earnings Beat, Raised Guidance and AI Data Center Expansion