DigitalOcean (NYSE:DOCN) Releases Q2 2026 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its second quarter 2026 earnings guidance on Tuesday. 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.

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. Barclays upped their target price on shares of DigitalOcean from $69.00 to $105.00 and gave the company an “overweight” rating in a research report on Monday, April 20th. Cantor Fitzgerald upped their target price on shares of DigitalOcean from $68.00 to $83.00 and gave the company an “overweight” rating in a research report on Wednesday, February 25th. Citigroup upped their target price on shares of DigitalOcean from $75.00 to $115.00 and gave the company a “buy” rating in a research report on Tuesday, April 28th. Bank of America upped their target price on shares of DigitalOcean from $103.00 to $107.00 and gave the company a “buy” rating in a research report on Thursday, April 9th. Finally, Citizens Jmp upped their target price on shares of DigitalOcean from $83.00 to $105.00 and gave the company a “market outperform” rating in a research report on Thursday, March 26th. Nine analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $91.08.

DigitalOcean Stock Up 33.6%

Shares of DOCN traded up $36.61 during trading hours on Tuesday, reaching $145.42. The stock had a trading volume of 9,164,848 shares, compared to its average volume of 4,007,475. DigitalOcean has a 52 week low of $25.56 and a 52 week high of $151.78. The firm has a 50-day moving average of $77.95 and a 200 day moving average of $59.86. The company has a market cap of $15.17 billion, a P/E ratio of 57.49 and a beta of 1.42.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, beating analysts’ consensus estimates of $0.27 by $0.17. DigitalOcean had a net margin of 28.76% and a negative return on equity of 127.00%. The business 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 firm’s quarterly revenue was up 22.4% on a year-over-year basis. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. As a group, equities analysts expect that DigitalOcean will post 0.4 earnings per share for the current year.

Insiders Place Their Bets

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

DigitalOcean News Roundup

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

Hedge Funds Weigh In On DigitalOcean

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Maryland State Retirement & Pension System boosted its stake in shares of DigitalOcean by 1.9% during the 4th quarter. Maryland State Retirement & Pension System now owns 10,001 shares of the company’s stock worth $481,000 after buying an additional 185 shares during the last quarter. Allworth Financial LP boosted its stake in shares of DigitalOcean by 54.4% during the 3rd quarter. Allworth Financial LP now owns 724 shares of the company’s stock worth $25,000 after buying an additional 255 shares during the last quarter. Man Group plc boosted its stake in shares of DigitalOcean by 0.5% during the 2nd quarter. Man Group plc now owns 82,485 shares of the company’s stock worth $2,356,000 after buying an additional 420 shares during the last quarter. HighTower Advisors LLC boosted its stake in shares of DigitalOcean by 7.8% during the 4th quarter. HighTower Advisors LLC now owns 7,519 shares of the company’s stock worth $362,000 after buying an additional 547 shares during the last quarter. Finally, UMB Bank n.a. boosted its stake in shares of DigitalOcean by 242.1% during the 4th quarter. UMB Bank n.a. now owns 821 shares of the company’s stock worth $40,000 after buying an additional 581 shares during the last quarter. 49.77% of the stock is 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.