DigitalOcean (NYSE:DOCN) Issues FY 2026 Earnings Guidance

Key Points

• FY2026 guidance: DigitalOcean issued EPS guidance of $1.10–$1.20, well above the consensus of $0.87, with revenue guidance of $1.1 billion in line with estimates and Q2 2026 EPS guidance of $0.20–$0.23.
• In the latest quarter the company beat expectations, reporting $0.44 EPS versus a $0.27 consensus and revenue of $257.9 million versus $249.8 million, and reported a net margin of 28.8% despite a negative return on equity of 127%.
• Shares opened near $108 (close to a 52‑week high of $109.13) with a market cap of $11.27 billion, and analysts have raised targets recently, leaving a consensus rating of "Moderate Buy" with an average price target of $91.08.

DigitalOcean (NYSE:DOCN - Get Free Report) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided EPS guidance of 1.100-1.200 for the period, compared to the consensus EPS 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 Stock Performance

Shares of NYSE DOCN opened at $108.02 on Tuesday. DigitalOcean has a 52 week low of $25.56 and a 52 week high of $109.13. The stock has a market capitalization of $11.27 billion, a P/E ratio of 42.70 and a beta of 1.42. The stock's fifty day moving average is $77.95 and its 200 day moving average is $59.86.

DigitalOcean (NYSE:DOCN - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, topping analysts' consensus estimates of $0.27 by $0.17. DigitalOcean had a negative return on equity of 127.00% and a net margin of 28.76%.The company had revenue of $257.91 million for the quarter, compared to analysts' expectations of $249.76 million. 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 research analysts forecast that DigitalOcean will post 0.4 earnings per share for the current year.

Wall Street Analyst Weigh In

DOCN has been the topic of a number of recent analyst reports. Bank of America raised their price target on DigitalOcean from $103.00 to $107.00 and gave the stock a "buy" rating in a research report on Thursday, April 9th. Cantor Fitzgerald raised their price objective on DigitalOcean from $68.00 to $83.00 and gave the company an "overweight" rating in a research note on Wednesday, February 25th. Royal Bank Of Canada set a $60.00 price objective on DigitalOcean in a research note on Tuesday, February 24th. Canaccord Genuity Group raised their price objective on DigitalOcean from $80.00 to $120.00 and gave the company a "buy" rating in a research note on Friday. Finally, Barclays raised their price objective on DigitalOcean from $69.00 to $105.00 and gave the company an "overweight" rating in a research note on Monday, April 20th. Nine equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $91.08.

Insider Activity

In related news, CAO Cherie Barrett sold 22,000 shares of the firm's stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $54.77, for a total value of $1,204,940.00. Following the sale, the chief accounting officer directly owned 62,469 shares of the company's stock, valued at $3,421,427.13. This trade represents a 26.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CFO Matt Steinfort sold 20,000 shares of the firm's stock in a transaction dated 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 sale, the chief financial officer directly owned 545,916 shares in the company, valued at $30,243,746.40. This trade represents a 3.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.96% of the company's stock.

Institutional Trading of DigitalOcean

A number of hedge funds have recently made changes to their positions in the company. Fuller & Thaler Asset Management Inc. boosted its stake in shares of DigitalOcean by 11.6% during 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. Lazard Asset Management LLC boosted its stake in shares of DigitalOcean by 34.5% during the second quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company's stock valued at $47,430,000 after purchasing an additional 426,264 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of DigitalOcean by 2.4% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,359,695 shares of the company's stock valued at $65,432,000 after purchasing an additional 31,682 shares in the last quarter. First Trust Advisors LP boosted its stake in shares of DigitalOcean by 19.8% during the fourth quarter. First Trust Advisors LP now owns 1,318,476 shares of the company's stock valued at $63,445,000 after purchasing an additional 217,457 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its stake in shares of DigitalOcean by 90.9% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,194,845 shares of the company's stock valued at $57,496,000 after purchasing an additional 568,823 shares in 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.

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