DigitalOcean (NYSE:DOCN) Releases Q3 2026 Earnings Guidance

Key Points

• DigitalOcean raised its outlook above Wall Street expectations: Q3 2026 EPS guidance is $0.280–$0.300 versus the $0.240 consensus, while revenue guidance of $304–$307 million exceeds the $294 million estimate. Full-year 2026 EPS guidance was updated to $1.350–$1.400.
• Analyst sentiment remains broadly positive. The stock has a “Moderate Buy” consensus rating, with two Strong Buy, eleven Buy and three Hold ratings; the average price target is $151.93.
• DigitalOcean’s latest reported quarter showed 22.4% year-over-year revenue growth to $257.9 million and EPS of $0.44, beating estimates of $249.76 million and $0.27, respectively.

DigitalOcean (NYSE:DOCN - Get Free Report) issued an update on its third quarter 2026 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 0.280-0.300 for the period, compared to the consensus EPS estimate of 0.240. The company issued revenue guidance of $304.0 million-$307.0 million, compared to the consensus revenue estimate of $294.0 million. DigitalOcean also updated its FY 2026 guidance to 1.350-1.400 EPS.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on DOCN shares. Oppenheimer set a $190.00 price objective on DigitalOcean in a report on Wednesday, May 6th. Stifel Nicolaus raised shares of DigitalOcean from a "hold" rating to a "buy" rating and upped their price objective for the company from $135.00 to $160.00 in a research note on Tuesday, July 21st. UBS Group reduced their price target on DigitalOcean from $175.00 to $155.00 and set a "neutral" rating on the stock in a research report on Wednesday, July 8th. Citigroup increased their price target on DigitalOcean from $180.00 to $185.00 and gave the company a "buy" rating in a report on Wednesday, July 8th. Finally, Robert W. Baird initiated coverage on shares of DigitalOcean in a research note on Tuesday, July 21st. They issued an "outperform" rating and a $165.00 price target for the company. Two 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.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $151.93.

DigitalOcean Stock Performance

DigitalOcean stock traded up $5.40 during mid-day trading on Tuesday, reaching $132.57. The company had a trading volume of 1,634,190 shares, compared to its average volume of 3,857,166. The company has a 50 day moving average of $146.62 and a 200-day moving average of $106.94. 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 52 week low of $28.79 and a 52 week high of $187.50. The firm has a market cap of $13.84 billion, a price-to-earnings ratio of 57.80 and a beta of 1.61.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its earnings results on Tuesday, May 5th. The company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.27 by $0.17. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The company had revenue of $257.90 million for the quarter, compared to analyst estimates of $249.76 million. During the same period last year, the business posted $0.56 earnings per share. The business's revenue for the quarter was up 22.4% compared to the same quarter last year. On average, sell-side analysts expect that DigitalOcean will post 0.57 EPS for the current fiscal year.

Insiders Place Their Bets

In other DigitalOcean news, Director Hilary Schneider sold 4,338 shares of DigitalOcean stock in a transaction dated 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 owned 24,323 shares in the company, valued at $3,803,630.74. The trade was a 15.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, 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 directly owned 538,414 shares of the company's stock, valued at $91,568,068.98. This represents a 1.82% decrease in their position. The SEC filing for this sale provides additional information. 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. Over the last quarter, insiders have sold 39,338 shares of company stock valued at $6,191,576. Corporate insiders own 0.96% of the company's stock.

Hedge Funds Weigh In On DigitalOcean

Several large investors have recently made changes to their positions in DOCN. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of DigitalOcean by 5.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 339,670 shares of the company's stock valued at $11,342,000 after purchasing an additional 16,162 shares during the last quarter. Intech Investment Management LLC grew its stake in shares of DigitalOcean by 59.2% during the 1st quarter. Intech Investment Management LLC now owns 39,429 shares of the company's stock valued at $1,317,000 after acquiring an additional 14,655 shares during the period. Amundi lifted its holdings in DigitalOcean by 126,552.2% during the second quarter. Amundi now owns 29,130 shares of the company's stock valued at $827,000 after purchasing an additional 29,107 shares in the last quarter. Jump Financial LLC purchased a new stake in shares of DigitalOcean in the second quarter worth $3,212,000. Finally, Qube Research & Technologies Ltd boosted its stake in shares of DigitalOcean by 69.7% in the second quarter. Qube Research & Technologies Ltd now owns 414,643 shares of the company's stock worth $11,842,000 after acquiring an additional 170,339 shares during the period. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

DigitalOcean Company Profile

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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