DigitalOcean (NYSE:DOCN) Releases Q3 2025 Earnings Guidance

Key Points

• DigitalOcean has updated its Q3 2025 earnings guidance, forecasting an EPS of 0.450-0.500 and revenue between $226.0 million-$227.0 million, exceeding analyst expectations.
• Following the earnings announcement, DigitalOcean's stock price increased by $7.46, closing at $34.47 with a trading volume significantly higher than its average.
• Equity analysts have mixed views on the stock, with target price revisions reflecting a general trend of decreasing ratings, while maintaining a consensus rating of "Hold" with an average target price of $40.36.

DigitalOcean (NYSE:DOCN - Get Free Report) issued an update on its third quarter 2025 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 0.450-0.500 for the period, compared to the consensus estimate of 0.471. The company issued revenue guidance of $226.0 million-$227.0 million, compared to the consensus revenue estimate of $223.5 million. DigitalOcean also updated its FY 2025 guidance to 2.050-2.100 EPS.

DigitalOcean Trading Down 4.7%

DOCN stock traded down $1.63 during trading on Friday, reaching $32.70. The stock had a trading volume of 1,228,187 shares, compared to its average volume of 1,569,272. The stock's 50 day moving average is $28.87 and its two-hundred day moving average is $32.95. DigitalOcean has a 52 week low of $25.45 and a 52 week high of $47.02. The firm has a market cap of $2.98 billion, a PE ratio of 25.18, a PEG ratio of 2.67 and a beta of 1.75.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported $0.59 EPS for the quarter, topping the consensus estimate of $0.47 by $0.12. DigitalOcean had a negative return on equity of 73.19% and a net margin of 15.18%. The firm had revenue of $218.70 million for the quarter, compared to the consensus estimate of $216.62 million. During the same quarter last year, the company earned $0.48 earnings per share. The business's revenue for the quarter was up 13.6% compared to the same quarter last year. On average, research analysts anticipate that DigitalOcean will post 1.01 EPS for the current year.

Analyst Ratings Changes

DOCN has been the topic of several recent research reports. Stifel Nicolaus set a $36.00 price objective on DigitalOcean in a research note on Tuesday. Canaccord Genuity Group raised their price objective on DigitalOcean from $45.00 to $49.00 and gave the stock a "buy" rating in a research note on Wednesday. Wall Street Zen upgraded DigitalOcean from a "hold" rating to a "buy" rating in a research report on Sunday, June 29th. Barclays increased their target price on DigitalOcean from $38.00 to $40.00 and gave the stock an "overweight" rating in a research report on Wednesday. Finally, Citigroup cut their target price on DigitalOcean from $50.00 to $40.00 and set a "buy" rating for the company in a research report on Wednesday, May 7th. One research analyst has rated the stock with a sell rating, five have given a hold rating and seven have issued a buy rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $41.45.

Insiders Place Their Bets

In other DigitalOcean news, insider Bratin Saha sold 3,461 shares of the firm's stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $27.77, for a total transaction of $96,111.97. Following the completion of the transaction, the insider owned 294,546 shares in the company, valued at $8,179,542.42. This trade represents a 1.16% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 0.96% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On DigitalOcean

An institutional investor recently raised its position in DigitalOcean stock. Intech Investment Management LLC grew its stake in DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 59.2% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 39,429 shares of the company's stock after purchasing an additional 14,655 shares during the period. Intech Investment Management LLC's holdings in DigitalOcean were worth $1,317,000 at the end of the most recent reporting period. Institutional investors and hedge funds 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).