• In early February 2026, Digital Realty Trust reported past fourth-quarter 2025 sales of US$1,074.7 million and revenue of US$1,634.67 million, alongside full-year revenue of US$6.11 billion and net income of US$1.31 billion.
• An interesting contrast in the report is that quarterly net income fell to US$98.65 million while full-year net income more than doubled to US$1.31 billion, highlighting the impact of non-uniform earnings over the year.
• With the company also issuing 2026 guidance for revenue of about US$6.60–US$6.70 billion, we'll assess how this shapes Digital Realty Trust's investment narrative.

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What Is Digital Realty Trust's Investment Narrative?

For anyone considering Digital Realty Trust, the core belief is that hyperscale, cloud and AI tenants will keep needing its global data center platform, even if earnings arrive in uneven bursts. The latest results reinforce that tension: full-year 2025 net income reached about US$1.31 billion, helped by a very large one-off gain, while Q4 profit dropped to under US$100 million. Management’s 2026 guidance of US$6.60–US$6.70 billion in revenue and lower net income per share than 2025’s reported level suggests that one-off boost will not repeat, which matters for a stock already trading on a relatively rich earnings multiple. In the short term, key catalysts still sit around AI-related partnerships and occupancy trends, while the main risks now look more centered on earnings quality, balance sheet flexibility and justified valuation.

However, one issue around the quality and repeatability of earnings is easy to overlook but important. Digital Realty Trust's shares have been on the rise but are still potentially undervalued by 30%. Find out what it's worth.

Exploring Other Perspectives

Three Simply Wall St Community fair values span roughly US$110 to US$246, underlining how far apart individual views can be. Set those against the recent one-off earnings boost and valuation concerns, and you can see why it helps to weigh several perspectives before forming an opinion on Digital Realty Trust’s potential.

Explore 3 other fair value estimates on Digital Realty Trust - why the stock might be worth as much as 43% more than the current price!

Build Your Own Digital Realty Trust Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Digital Realty Trust research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Digital Realty Trust research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Digital Realty Trust's overall financial health at a glance.

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This article by Simply Wall St is general in nature. 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. 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.