DigitalOcean (DOCN) to Release Earnings on Tuesday

Key Points

• DigitalOcean is set to release its Q2 2025 earnings on August 5th, with expectations of $0.47 earnings per share and revenue of $216.62 million.
• In its last report, DigitalOcean exceeded earnings expectations, posting $0.56 EPS and revenue of $210.70 million, reflecting a year-over-year revenue growth of 14.1%.
• Analysts have mixed ratings on DigitalOcean, with a consensus rating of "Hold" and a target price of $40.36, with multiple analysts recently adjusting their price targets.

DigitalOcean (NYSE:DOCN - Get Free Report) is anticipated to issue its Q2 2025 quarterly earnings data before the market opens on Tuesday, August 5th. Analysts expect the company to announce earnings of $0.47 per share and revenue of $216.62 million for the quarter. DigitalOcean has set its Q2 2025 guidance at 0.420-0.470 EPS.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its quarterly earnings results on Tuesday, May 6th. The company reported $0.56 earnings per share for the quarter, topping analysts' consensus estimates of $0.45 by $0.11. DigitalOcean had a net margin of 13.46% and a negative return on equity of 60.69%. The business had revenue of $210.70 million for the quarter, compared to analysts' expectations of $208.63 million. During the same period in the prior year, the company posted $0.43 EPS. The business's revenue for the quarter was up 14.1% on a year-over-year basis. On average, analysts expect DigitalOcean to post $1 EPS for the current fiscal year and $1 EPS for the next fiscal year.

DigitalOcean Trading Down 5.7%

Shares of NYSE:DOCN traded down $1.60 on Friday, reaching $26.26. 676,343 shares of the company were exchanged, compared to its average volume of 1,441,988. DigitalOcean has a 1-year low of $25.45 and a 1-year high of $47.02. The firm has a market cap of $2.39 billion, a price-to-earnings ratio of 23.50, a price-to-earnings-growth ratio of 2.04 and a beta of 1.76. The company has a 50-day moving average of $28.53 and a 200-day moving average of $33.07.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the stock. Barclays lowered their price objective on shares of DigitalOcean from $48.00 to $38.00 and set an "overweight" rating on the stock in a research note on Monday, April 21st. Needham & Company LLC reissued a "hold" rating on shares of DigitalOcean in a research note on Tuesday, May 6th. Stifel Nicolaus lowered their price objective on shares of DigitalOcean from $40.00 to $33.00 and set a "hold" rating on the stock in a research note on Monday, April 7th. UBS Group lowered their price objective on shares of DigitalOcean from $44.00 to $32.00 and set a "neutral" rating on the stock in a research note on Thursday, May 8th. Finally, Morgan Stanley lowered their price objective on shares of DigitalOcean from $52.00 to $41.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 16th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and seven have given a buy rating to the company. According to MarketBeat, DigitalOcean has an average rating of "Hold" and an average price target of $40.36.

Insider Activity

In other DigitalOcean news, insider Bratin Saha sold 3,461 shares of the firm's stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $27.77, for a total transaction of $96,111.97. Following the sale, the insider directly owned 294,546 shares of the company's stock, valued at $8,179,542.42. This trade represents a 1.16% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 0.96% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On DigitalOcean

An institutional investor recently raised its position in DigitalOcean stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 5.0% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 339,670 shares of the company's stock after acquiring an additional 16,162 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC owned 0.37% of DigitalOcean worth $11,342,000 as of its most recent SEC filing. Institutional investors own 49.77% of the company's stock.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc, through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company's platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC).