Digital Realty's Revenue Outlook Falls Short of Expectations
Digital Realty Trust projects its annual revenue below Wall Street estimates, citing economic uncertainty leading to reduced spending by clients on data center services.
Amid concerns about a global economic slowdown, businesses are cutting back on cloud-related expenses, including data center services. This has impacted companies like Digital Realty, which provide managed data centers to cloud, IT, and other industries.
For the full year 2025, Digital Realty anticipates revenue between $5.8 billion and $5.9 billion, below analysts' consensus estimate of $6.1 billion. For the quarter ending December 31, the company reported revenue of $1.44 billion versus estimates of $1.46 billion.
Adjusted core earnings declined to $1.73 per share from $1.63 a year earlier. Adjusted funds from operations, a crucial cash flow measure for REITs, increased to $1.36 per share from $1.30 in the previous year.