DigitalOcean (NYSE:DOCN) Updates Q2 2025 Earnings Guidance

DigitalOcean (NYSE:DOCN - Get Free Report) issued an update on its second quarter 2025 earnings guidance on Tuesday morning. The company provided EPS guidance of 0.420-0.470 for the period, compared to the consensus EPS estimate of 0.470. The company issued revenue guidance of $215.5 million-$217.5 million, compared to the consensus revenue estimate of $217.1 million.

DigitalOcean Stock Performance

NYSE:DOCN opened at $32.77 on Tuesday. DigitalOcean has a one year low of $25.45 and a one year high of $47.02. The company has a market capitalization of $2.99 billion, a price-to-earnings ratio of 38.55, a price-to-earnings-growth ratio of 3.12 and a beta of 1.88. The stock has a 50-day simple moving average of $33.25 and a 200 day simple moving average of $36.93.

DigitalOcean (NYSE:DOCN - Get Free Report) last announced its quarterly earnings data on Tuesday, May 6th. The company reported $0.43 earnings per share for the quarter, missing analysts' consensus estimates of $0.45 by ($0.02). DigitalOcean had a net margin of 10.86% and a negative return on equity of 43.11%. On average, equities research analysts forecast that DigitalOcean will post 1.01 EPS for the current fiscal year.

Analyst Ratings Changes

A number of research firms have recently weighed in on DOCN. JPMorgan Chase & Co. lifted their price target on DigitalOcean from $40.00 to $45.00 and gave the company a "neutral" rating in a report on Wednesday, February 26th. Canaccord Genuity Group dropped their target price on shares of DigitalOcean from $50.00 to $45.00 and set a "buy" rating on the stock in a report on Monday, April 7th. Cantor Fitzgerald increased their price target on DigitalOcean from $39.00 to $43.00 and gave the company a "neutral" rating in a research report on Wednesday, February 26th. Citigroup assumed coverage on shares of DigitalOcean in a research note on Friday, January 24th. They set a "buy" rating and a $45.00 target price on the stock. Finally, UBS Group raised their price target on shares of DigitalOcean from $39.00 to $44.00 and gave the stock a "neutral" rating in a report on Wednesday, February 26th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and six have given a buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $41.27.

Insider Activity

In other news, insider Bratin Saha sold 3,461 shares of the stock in a transaction that occurred on Monday, April 21st. The stock was sold at an average price of $26.86, for a total value of $92,962.46. Following the completion of the sale, the insider now directly owns 394,367 shares of the company's stock, valued at approximately $10,592,697.62. This represents a 0.87 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.74% of the company's stock.

About DigitalOcean

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).

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