DigitalOcean (NYSE:DOCN) Releases FY 2026 Earnings Guidance

DigitalOcean (NYSE:DOCN) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 1.350-1.400 for the period, compared to the consensus EPS estimate of 1.060. The company issued revenue guidance of $1.2 billion-$1.2 billion, compared to the consensus revenue estimate of $1.1 billion. DigitalOcean also updated its Q3 2026 guidance to 0.280-0.300 EPS.

DigitalOcean Stock Performance

DOCN opened at $130.75 on Tuesday. The stock has a market cap of $13.65 billion, a price-to-earnings ratio of 58.40 and a beta of 1.61. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.92. DigitalOcean has a 12-month low of $28.79 and a 12-month high of $187.50. The business has a 50 day moving average of $146.62 and a 200-day moving average of $106.94.

DigitalOcean (NYSE:DOCN) last announced its earnings results on Tuesday, May 5th. The company reported $0.44 earnings per share for the quarter, topping analysts’ consensus estimates of $0.27 by $0.17. The company had revenue of $257.90 million for the quarter, compared to analyst estimates of $249.76 million. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.The firm’s quarterly revenue was up 22.4% compared to the same quarter last year. During the same quarter last year, the company earned $0.56 earnings per share. On average, equities research analysts expect that DigitalOcean will post 0.57 earnings per share for the current year.

Analyst Ratings Changes

A number of equities analysts recently commented on the stock. Piper Sandler raised their price target on shares of DigitalOcean from $98.00 to $155.00 and gave the stock a “neutral” rating in a research report on Tuesday, May 5th. Citigroup increased their target price on shares of DigitalOcean from $180.00 to $185.00 and gave the stock a “buy” rating in a research report on Wednesday, July 8th. The Goldman Sachs Group raised their target price on shares of DigitalOcean from $78.00 to $179.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th. William Blair reiterated an “outperform” rating on shares of DigitalOcean in a research report on Wednesday, July 15th. Finally, Canaccord Genuity Group reiterated a “buy” rating and issued a $200.00 price target on shares of DigitalOcean in a research note on Friday, July 10th. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $151.93.

Insider Buying and Selling

In related news, CFO Matt Steinfort sold 10,000 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $170.07, for a total transaction of $1,700,700.00. Following the sale, the chief financial officer owned 538,414 shares in the company, valued at approximately $91,568,068.98. This trade represents a 1.82% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Hilary Schneider sold 4,338 shares of the business’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $156.38, for a total value of $678,376.44. Following the transaction, the director directly owned 24,323 shares of the company’s stock, valued at $3,803,630.74. This trade represents a 15.14% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 39,338 shares of company stock valued at $6,191,576. 0.96% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Pacer Advisors Inc. raised its holdings in DigitalOcean by 225.7% during the 4th quarter. Pacer Advisors Inc. now owns 16,426 shares of the company’s stock worth $790,000 after purchasing an additional 11,382 shares during the last quarter. Invesco Ltd. boosted its stake in shares of DigitalOcean by 12.3% in the 4th quarter. Invesco Ltd. now owns 288,571 shares of the company’s stock valued at $13,886,000 after purchasing an additional 31,618 shares during the last quarter. Mercer Global Advisors Inc. ADV acquired a new stake in shares of DigitalOcean during the fourth quarter worth $400,000. Vident Advisory LLC acquired a new position in DigitalOcean in the fourth quarter valued at $438,000. Finally, Mackenzie Financial Corp bought a new stake in DigitalOcean during the fourth quarter valued at $209,000. Institutional investors own 49.77% of the company’s stock.

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.