Digital Realty Trust: Structural AI Demand Meets Excellent Execution - Potential Momentum Reversal

DLR's beneficiary status has been observed in the growing backlog by +95.8% YoY and the higher rental rates, with it underscoring their likely to be robust, multi-year, profitable growth trends. Thanks to the ongoing capacity expansions and accretive M&A activities, it is unsurprising that the management has raised their FY2026 guidance and the stock well buoyed since December 2025 bottom. The rally has consequently triggered DLR's somewhat premium Price/FFO of 25.27x and a moderating forward dividend yield, along with the notably overbought technical indicators.