DigitalOcean (NYSE:DOCN) Releases Q2 2026 Earnings Guidance

DigitalOcean (NYSE:DOCN) issued an update on its second quarter 2026 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 0.200-0.230 for the period, compared to the consensus estimate of 0.200. The company issued revenue guidance of $272.0 million-$274.0 million, compared to the consensus revenue estimate of $261.0 million. DigitalOcean also updated its FY 2026 guidance to 1.100-1.200 EPS.

DigitalOcean Stock Down 6.1%

Shares of DOCN traded down $9.82 during mid-day trading on Thursday, hitting $151.17. The company’s stock had a trading volume of 6,109,842 shares, compared to its average volume of 4,127,683. The company’s 50-day moving average is $81.78 and its 200-day moving average is $61.47. DigitalOcean has a 52-week low of $25.56 and a 52-week high of $162.00. The firm has a market capitalization of $15.77 billion, a price-to-earnings ratio of 66.01 and a beta of 1.42. The company has a current ratio of 1.46, a quick ratio of 0.69 and a debt-to-equity ratio of 0.92.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.27 by $0.17. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The firm had revenue of $257.91 million during the quarter, compared to analysts’ expectations of $249.76 million. During the same quarter in the prior year, the company earned $0.56 EPS. The company’s revenue was up 22.4% compared to the same quarter last year. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. On average, equities research analysts forecast that DigitalOcean will post 0.4 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on DOCN shares. Stifel Nicolaus set a $57.00 price target on shares of DigitalOcean in a research report on Tuesday, February 24th. Oppenheimer set a $190.00 price target on shares of DigitalOcean in a report on Wednesday. Cantor Fitzgerald raised their price target on shares of DigitalOcean from $68.00 to $83.00 and gave the company an “overweight” rating in a report on Wednesday, February 25th. Weiss Ratings restated a “hold (c+)” rating on shares of DigitalOcean in a report on Friday, March 27th. Finally, Citigroup raised their price target on shares of DigitalOcean from $115.00 to $180.00 and gave the company a “buy” rating in a report on Thursday. Nine equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, DigitalOcean has a consensus rating of “Moderate Buy” and a consensus price target of $141.08.

Insider Activity at DigitalOcean

In other DigitalOcean news, CFO Matt Steinfort sold 20,000 shares of the business’s stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $55.40, for a total transaction of $1,108,000.00. Following the sale, the chief financial officer owned 545,916 shares of the company’s stock, valued at approximately $30,243,746.40. The trade was a 3.53% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CAO Cherie Barrett sold 22,000 shares of the business’s stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $54.77, for a total transaction of $1,204,940.00. Following the sale, the chief accounting officer directly owned 62,469 shares in the company, valued at approximately $3,421,427.13. This represents a 26.05% decrease in their position. The SEC filing for this sale provides additional information. 0.96% of the stock is currently owned by insiders.

More DigitalOcean News

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Q1 beat and AI momentum — DOCN reported Q1 results that topped estimates, with revenue up ~22% and AI ARR surging ~221%; management raised FY‑2026 guidance, underpinning the bullish case. DOCN Q1 Earnings Beat Estimates, Revenues Up AI-Native Customer Demand
• Positive Sentiment: Major analyst upgrade — Citigroup raised its price target to $180 and put a “buy” rating on DOCN, signaling significant upside from current levels. Benzinga
• Positive Sentiment: Analysts lifting forecasts — Multiple analysts raised earnings and revenue forecasts following the strong quarter, reinforcing expectations for sustained AI-driven growth. DigitalOcean Analysts Increase Their Forecasts Following Strong Q1 Results
• Positive Sentiment: Earnings call highlighted AI opportunity — Management’s call emphasized an AI-fueled surge and large addressable opportunity, supporting the long-term growth story. DigitalOcean (DOCN) Earnings Call Signals AI-Fueled Surge
• Positive Sentiment: Coverage highlighting sustained upside — Market commentary argues DigitalOcean is well positioned for continued cash-flow and growth acceleration in coming years due to its AI-native customer traction. DigitalOcean’s AI Surge: How Far Can This Rally Go?
• Neutral Sentiment: UBS raised its target to $160 but kept a “neutral” rating, a mixed signal that may limit upside despite the higher target. DigitalOcean (NYSE:DOCN) Price Target Raised to $160.00 at UBS Group
• Neutral Sentiment: AI infrastructure push and capital raise — DigitalOcean announced a new AI infrastructure platform alongside a capital raise to support the buildout; this funds growth but may concern investors about dilution or timing. DigitalOcean Expands Into AI Infrastructure With New Platform And Capital Raise
• Negative Sentiment: Profit-taking / valuation concerns — Despite headlines, the stock is lower today, likely driven by profit-taking after a rapid run to new highs and lingering valuation concerns (high P/E), which can outweigh good news in the short term.

Institutional Trading of DigitalOcean

Institutional investors and hedge funds have recently bought and sold shares of the business. Maryland State Retirement & Pension System lifted its stake in shares of DigitalOcean by 1.9% in the 4th quarter. Maryland State Retirement & Pension System now owns 10,001 shares of the company’s stock valued at $481,000 after purchasing an additional 185 shares during the period. Allworth Financial LP lifted its stake in shares of DigitalOcean by 54.4% in the 3rd quarter. Allworth Financial LP now owns 724 shares of the company’s stock valued at $25,000 after purchasing an additional 255 shares during the period. Man Group plc lifted its stake in shares of DigitalOcean by 0.5% in the 2nd quarter. Man Group plc now owns 82,485 shares of the company’s stock valued at $2,356,000 after purchasing an additional 420 shares during the period. HighTower Advisors LLC lifted its stake in shares of DigitalOcean by 7.8% in the 4th quarter. HighTower Advisors LLC now owns 7,519 shares of the company’s stock valued at $362,000 after purchasing an additional 547 shares during the period. Finally, UMB Bank n.a. lifted its stake in shares of DigitalOcean by 242.1% in the 4th quarter. UMB Bank n.a. now owns 821 shares of the company’s stock valued at $40,000 after purchasing an additional 581 shares during the period. 49.77% of the stock is currently owned by institutional investors and hedge funds.

About DigitalOcean

DigitalOcean Holdings, Inc is a cloud infrastructure provider that focuses on simplicity, performance and developer experience. The company offers a range of cloud services designed to help software developers, startups and small- to medium-sized businesses deploy, manage and scale applications. Its flagship offering, Droplets, provides virtual private servers that can be configured with various CPU, memory and storage options. In addition to compute instances, DigitalOcean’s platform includes managed Kubernetes, scalable object and block storage, managed databases, load balancers and networking capabilities such as Virtual Private Cloud (VPC) and Floating IPs.

Founded in 2011 and headquartered in New York City, DigitalOcean was created with the goal of making cloud computing more accessible to individual developers and smaller teams.