DigitalOcean (NYSE:DOCN) Updates Q1 2026 Earnings Guidance

DigitalOcean (NYSE:DOCN) issued an update on its first quarter 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 0.220-0.270 for the period, compared to the consensus earnings per share estimate of 0.390. The company issued revenue guidance of $249.0 million-$250.0 million, compared to the consensus revenue estimate of $248.5 million. DigitalOcean also updated its FY 2026 guidance to 0.750-1.000 EPS.

DigitalOcean Price Performance

DOCN opened at $58.86 on Tuesday. The business has a fifty day moving average price of $55.41 and a 200 day moving average price of $44.92. DigitalOcean has a 12 month low of $25.45 and a 12 month high of $70.43. The stock has a market capitalization of $5.38 billion, a price-to-earnings ratio of 23.73, a PEG ratio of 8.94 and a beta of 1.76.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on DOCN. Barclays upped their target price on shares of DigitalOcean from $49.00 to $63.00 and gave the stock an “overweight” rating in a research note on Monday, January 12th. Piper Sandler increased their price objective on shares of DigitalOcean from $47.00 to $50.00 and gave the company a “neutral” rating in a research report on Monday, January 5th. Bank of America lifted their price objective on shares of DigitalOcean from $60.00 to $72.00 and gave the stock a “buy” rating in a research report on Tuesday, January 27th. Wall Street Zen downgraded shares of DigitalOcean from a “buy” rating to a “hold” rating in a research note on Sunday, January 4th. Finally, Canaccord Genuity Group raised their price target on DigitalOcean from $65.00 to $80.00 and gave the company a “buy” rating in a research note on Friday. Eight analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, DigitalOcean presently has an average rating of “Moderate Buy” and a consensus target price of $53.92.

Institutional Trading of DigitalOcean

Several institutional investors and hedge funds have recently made changes to their positions in DOCN. Invesco Ltd. grew its stake in DigitalOcean by 12.3% during the 4th quarter. Invesco Ltd. now owns 288,571 shares of the company’s stock worth $13,886,000 after buying an additional 31,618 shares during the last quarter. Mercer Global Advisors Inc. ADV acquired a new stake in shares of DigitalOcean in the fourth quarter valued at approximately $400,000. Vident Advisory LLC purchased a new position in shares of DigitalOcean during the fourth quarter worth approximately $438,000. Mackenzie Financial Corp acquired a new position in shares of DigitalOcean in the 4th quarter valued at $209,000. Finally, Fuller & Thaler Asset Management Inc. raised its position in DigitalOcean by 11.6% in the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 2,420,341 shares of the company’s stock valued at $116,467,000 after purchasing an additional 252,303 shares during the last quarter. 49.77% of the stock is owned by hedge funds and other institutional investors.

DigitalOcean Company Profile

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.