Digital Realty TrustDLR -1.02%86 Gross Margin % is 57.30% as of Mar. 2026, which is 5% below its 10-year median of 60.53. GuruFocus rates DLR with a GF Score™ of 86/100 and a GF Value™ of $166.67 (Modestly Overvalued). The stock has 11 warning signs investors should review. Among 680 REITs companies, Digital Realty Trust ranks worse than 78.97% on this metric.
Digital Realty Trust Inc gross margin has been in long-term decline. The average rate of decline per year is -2.4%.
The historical rank and industry rank for Digital Realty Trust's Gross Margin % or its related term are showing as below:
DLR'
s Gross Margin % Range Over the Past 10 Years
Min: 52.56 Med: 60.53 Max: 64.4
Current: 55.53
During the past 13 years, the highestGross Margin % of Digital Realty Trust was 64.40%. The lowest was 52.56%. And the median was 60.53%.
DLR's Gross Margin % is ranked worse than 78.97% of 680
companies
in the REITs industry
Industry Median: 69.61
vs DLR: 55.53
Digital Realty Trust had a gross margin of 57.30% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Digital Realty Trust was -2.40% per year.
Digital Realty Trust (NYSE:DLR) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Digital Realty Trust had a gross margin of 57.30% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Digital Realty Trust Gross Margin % Related Terms
Digital Realty Trust Gross Margin % Historical Data
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The historical data trend for Digital Realty Trust's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the REIT - Specialty subindustry, Digital Realty Trust's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Digital Realty Trust Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Digital Realty Trust's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Digital Realty Trust's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Digital Realty Trust (DLR) has a Gross Margin % of 57.30% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Digital Realty Trust and its competitors. This is near median its historical median of 60.53. Over the past decade, Digital Realty Trust's Gross Margin % has ranged from 52.56 to 64.40. According to the industry distribution chart, Digital Realty Trust ranks #537 out of 680 companies in the REITs industry, placing it in the top 79%.
Is Digital Realty Trust's Gross Margin % too high?
Digital Realty Trust's current Gross Margin % of 57.30% is near median its 10-year median of 60.53. Over the past 10 years, this metric has ranged from a low of 52.56 to a high of 64.40. The REITs industry median Gross Margin % is 69.61. Digital Realty Trust's value of 57.30% is 17.7% below this industry median. Based on the distribution chart, Digital Realty Trust ranks #537 out of 680 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Digital Realty Trust has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Digital Realty Trust's Gross Margin % compare to AMT and CCI?
According to the REITs industry distribution chart, Digital Realty Trust ranks #537 out of 680 companies for Gross Margin %. This places Digital Realty Trust in the lower half of its industry. The industry median Gross Margin % is 69.61. Digital Realty Trust's value of 57.30% is 17.7% below this benchmark. Historically, Digital Realty Trust's own Gross Margin % has ranged from 52.56 to 64.40 over the past decade. While the company's 10-year median is 60.53 vs. the industry median of 69.61, Digital Realty Trust has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a REITs company?
The median Gross Margin % among REITs companies is 69.61, based on 680 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Digital Realty Trust's current Gross Margin % of 57.30% is 17.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Digital Realty Trust and its competitors. For the REITs industry, the median Gross Margin % is 69.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Realty Trust's current Gross Margin % is 57.30%, which is near median its own 10-year median of 60.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Realty Trust stock overvalued right now?
Based on GuruFocus' analysis, Digital Realty Trust (DLR) is currently considered Modestly Overvalued. The stock's GF Value™ is $166.67, compared to a current price of $193.02 — trading 15.8% above its estimated fair value. The current Gross Margin % is 57.30%, which is near median its 10-year median of 60.53 and 17.7% below the REITs industry median of 69.61. Digital Realty Trust's overall GF Score™ is 86/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Digital Realty Trust (DLR), the current Gross Margin % is 57.30% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Digital Realty Trust (DLR) Overvalued in 2026?
Based on GuruFocus' analysis, Digital Realty Trust stock appears to be overvalued.
The current stock price of $193.02 is trading 15.8% above its estimated GF Value™ of $166.67.
GuruFocus considers Digital Realty Trust to be Modestly Overvalued.
Key valuation signals for DLR:
Gross Margin %: 57.30% (near median its 10-year median of 60.53)
GF Value™: $166.67 vs. price of $193.02 (15.8% above fair value)
Industry Position: 17.7% below the REITs median (#537 of 680)
No single metric tells the full story. See the DLR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digital Realty is one of the leading providers of cloud- and carrier-neutral data centers, offering colocation and interconnection services to hyperscalers and large businesses. Digital Realty operates 300 properties in 57 metropolitan areas across 31 countries, serving 5,000 customers. Renting physical space accounts for about 90% of Digital Realty's revenue. The firm enables hyperscalers and other clients to store servers, data, and networking equipment. The other 10% of revenue is generated primarily through interconnection services (8%) and other fee income (2%).
86GF Score
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