Austin, Texas-based Digital Realty Trust, Inc. (DLR) brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. With a market cap of $58.1 billion, Digital Realty engages in the ownership, acquisition, repositioning, and management of technology-related real estate.

The REIT is set to announce its second-quarter results after the market closes on Thursday, Jul. 24. Ahead of the event, analysts expect DLR to report core funds from operations (FFO) of $1.73 per share, up 4.9% from $1.65 per share reported in the year-ago quarter. Moreover, the company has matched or surpassed Wall Street’s FFO projections in each of the past four quarters.

For the full fiscal 2025, Digital Realty is expected to deliver a core FFO of $7.03 per share, up 4.8% from $6.71 per share in fiscal 2024. While in fiscal 2026, its FFO is expected to surge 7.4% year-over-year to $7.55 per share.

DLR stock has gained 13.8% over the past 52 weeks, outpacing the S&P 500 Index’s ($SPX) 13.4% returns and the Real Estate Select Sector SPDR Fund’s (XLRE) 9.5% gains during the same time frame.

Digital Realty Trust’s stock prices gained 4% after the release of its impressive Q1 results on Apr. 24. Driven by strong demand across its key product segments, the company observed strong leasing and growth in cash flows. Its rental revenues for the quarter surged 7.4% year-over-year to $960.5 million, while its overall topline increased 5.7% year-over-year to $1.4 billion. Furthermore, its core funds from operations (CFFO) soared 14.3% year-over-year to $608.4 million, and its CFFO per share of $1.77 surpassed the Street’s expectations by 2.3%, boosting investor confidence.

The stock holds a consensus “Moderate Buy” rating overall. Of the 28 analysts covering the stock, opinions include 19 “Strong Buys,” two “Moderate Buys,” six “Holds,” and one “Strong Sell.” Its mean price target of $187.52 indicates an 8.6% upside potential from current price levels.