DigitalOcean (NYSE:DOCN) Posts Earnings Results, Beats Estimates By $0.06 EPS

DigitalOcean (NYSE:DOCN) announced its earnings results on Tuesday. The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.38 by $0.06, Briefing.com reports. DigitalOcean had a negative return on equity of 92.51% and a net margin of 29.15%.During the same period in the previous year, the firm earned $0.49 EPS. DigitalOcean’s revenue for the quarter was up 18.3% on a year-over-year basis. DigitalOcean updated its FY 2026 guidance to 0.750-1.000 EPS and its Q1 2026 guidance to 0.220-0.270 EPS.

DigitalOcean Stock Down 7.5%

Shares of NYSE:DOCN opened at $58.86 on Tuesday. The stock’s 50 day moving average is $55.41 and its 200-day moving average is $44.92. DigitalOcean has a twelve month low of $25.45 and a twelve month high of $70.43. The firm 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.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on DOCN shares. Citigroup reaffirmed a “buy” rating on shares of DigitalOcean in a research note on Friday, February 13th. UBS Group upped their price target on shares of DigitalOcean from $40.00 to $48.00 and gave the company a “neutral” rating in a research report on Thursday, November 6th. Wall Street Zen downgraded DigitalOcean from a “buy” rating to a “hold” rating in a report on Sunday, January 4th. Cantor Fitzgerald raised DigitalOcean from a “neutral” rating to an “overweight” rating and boosted their price objective for the company from $47.00 to $68.00 in a research note on Thursday, February 5th. Finally, Canaccord Genuity Group upped their target price on DigitalOcean from $65.00 to $80.00 and gave the company a “buy” rating in a research report on Friday. Eight analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $53.92.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in DOCN. Invesco Ltd. increased its position in shares of DigitalOcean by 12.3% during the fourth quarter. Invesco Ltd. now owns 288,571 shares of the company’s stock worth $13,886,000 after acquiring an additional 31,618 shares in the last quarter. Mercer Global Advisors Inc. ADV acquired a new position in DigitalOcean during the 4th quarter valued at about $400,000. Vident Advisory LLC bought a new stake in DigitalOcean during the 4th quarter worth approximately $438,000. Mackenzie Financial Corp purchased a new stake in shares of DigitalOcean in the fourth quarter worth approximately $209,000. Finally, Fuller & Thaler Asset Management Inc. lifted its holdings in shares of DigitalOcean by 11.6% in the fourth 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 in the last quarter. 49.77% of the stock is owned by 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.