DigitalOcean (NYSE:DOCN) Releases FY 2026 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 1.100-1.200 for the period, compared to the consensus estimate of 0.870. The company issued revenue guidance of $1.1 billion-$1.1 billion, compared to the consensus revenue estimate of $1.1 billion. DigitalOcean also updated its Q2 2026 guidance to 0.200-0.230 EPS.

DigitalOcean Price Performance

Shares of NYSE DOCN traded up $37.63 during midday trading on Tuesday, hitting $146.44. 9,350,024 shares of the company’s stock were exchanged, compared to its average volume of 4,012,146. DigitalOcean has a twelve month low of $25.56 and a twelve month high of $151.78. The company has a market cap of $15.28 billion, a PE ratio of 57.88 and a beta of 1.42. The firm’s fifty day simple moving average is $77.95 and its 200-day simple moving average is $59.86.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings results on Tuesday, May 5th. The company reported $0.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.27 by $0.17. The firm had revenue of $257.91 million for the quarter, compared to the consensus estimate of $249.76 million. DigitalOcean had a negative return on equity of 127.00% and a net margin of 28.76%.The firm’s quarterly revenue was up 22.4% compared to the same quarter last year. During the same quarter last year, the business posted $0.56 EPS. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. Equities analysts anticipate that DigitalOcean will post 0.4 EPS for the current fiscal year.

Analysts Set New Price Targets

Several research analysts have weighed in on DOCN shares. Citigroup raised their price target on DigitalOcean from $75.00 to $115.00 and gave the company a “buy” rating in a report on Tuesday, April 28th. Citizens Jmp raised their price target on DigitalOcean from $83.00 to $105.00 and gave the company a “market outperform” rating in a report on Thursday, March 26th. Canaccord Genuity Group raised their price target on DigitalOcean from $80.00 to $120.00 and gave the company a “buy” rating in a report on Friday. Stifel Nicolaus set a $57.00 price target on DigitalOcean in a report on Tuesday, February 24th. Finally, Oppenheimer raised their price target on DigitalOcean from $100.00 to $115.00 and gave the company an “outperform” rating in a report on Tuesday, April 28th. Nine analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, DigitalOcean currently has an average rating of “Moderate Buy” and a consensus target price of $91.08.

Insiders Place Their Bets

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

Key Stories Impacting DigitalOcean

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Q1 “double beat” — EPS $0.44 vs. consensus $0.27 and revenue $257.9M vs. $249.8M; revenue up 22.4% y/y. Management raised FY26 EPS guidance to $1.10–$1.20 (vs. consensus ~$0.87) and Q2 revenue guide to $272–$274M (above street). This is the main catalyst lifting the stock. DigitalOcean Stock Soars 18% After Q1 Double Beat, Raises FY26 Guidance
• Positive Sentiment: Independent coverage confirms the beat: multiple outlets (Zacks, MarketBeat) flagged the EPS/revenue beat and linked commentary from the company and conference call materials. DigitalOcean Holdings, Inc. (DOCN) Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: AI product momentum ahead of the print — recent Inference Engine announcements and positioning in AI infrastructure likely boosted demand into the earnings release, supporting the reaction. DigitalOcean shares rise as investors position ahead of Q1 earnings and recent AI product announcements
• Positive Sentiment: Street momentum: at least one outlet raised DOCN price targets following the beat (example: $120 target published). That can attract analyst-driven flows. DigitalOcean (NYSE:DOCN) Price Target Raised to $120.00
• Neutral Sentiment: Analyst views remain mixed — multiple price targets in recent weeks (median around $105) show divergence; some upgrades/positive notes but a wide range of valuations remains. DigitalOcean shares rise as investors position ahead of Q1 earnings and recent AI product announcements
• Negative Sentiment: Insider selling noted (CFO and SVP sold shares recently) — may concern some investors about near-term insider conviction. DigitalOcean shares rise as investors position ahead of Q1 earnings and recent AI product announcements
• Negative Sentiment: EPS is still below last year’s Q1 ($0.44 vs. $0.56), and the company shows a negative return on equity metric despite positive net margin — metrics some investors will watch for sustainability. No article link

Institutional Investors Weigh In On DigitalOcean

A number of institutional investors have recently added to or reduced their stakes in DOCN. Vanguard Personalized Indexing Management LLC boosted its holdings in DigitalOcean by 23.8% in the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 9,877 shares of the company’s stock valued at $475,000 after purchasing an additional 1,899 shares during the last quarter. HighTower Advisors LLC boosted its holdings in DigitalOcean by 7.8% in the fourth 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 last quarter. Graham Capital Management L.P. purchased a new position in DigitalOcean in the fourth quarter valued at about $356,000. Cerity Partners LLC purchased a new position in DigitalOcean in the fourth quarter valued at about $313,000. Finally, Cresset Asset Management LLC purchased a new position in DigitalOcean in the third quarter valued at about $306,000. Hedge funds and other institutional investors own 49.77% of the company’s stock.

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.