DigitalOcean (NYSE:DOCN) Updates Q2 2026 Earnings Guidance

Key Points

• Q2 2026 guidance: DigitalOcean set EPS guidance of $0.200–$0.230 (consensus $0.200) and revenue guidance of $272–$274M (consensus $261M), and updated FY 2026 EPS to $1.100–$1.200.
• In the most recent quarter the company reported $0.44 EPS (vs. $0.27 est.) and revenue of $257.91M, delivering a strong net margin of 28.76%.
• Shares jumped about 5.1% on the news to open at $108.02, and several analysts have raised price targets amid a consensus rating of "Moderate Buy" with an average target of $91.08.

DigitalOcean (NYSE:DOCN - Get Free Report) issued an update on its second quarter 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 0.200-0.230 for the period, compared to the consensus earnings per share estimate of 0.200. The company issued revenue guidance of $272.0 million-$274.0 million, compared to the consensus revenue estimate of $261.0 million. DigitalOcean also updated its FY 2026 guidance to 1.100-1.200 EPS.

DigitalOcean Trading Up 5.1%

NYSE:DOCN opened at $108.02 on Tuesday. DigitalOcean has a 1 year low of $25.56 and a 1 year high of $109.13. The stock has a market cap of $11.27 billion, a price-to-earnings ratio of 42.70 and a beta of 1.42. The stock has a 50-day moving average price of $77.95 and a two-hundred day moving average price of $59.86.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its earnings results on Tuesday, May 5th. The company reported $0.44 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $257.91 million during 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. Sell-side analysts forecast that DigitalOcean will post 0.4 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the company. The Goldman Sachs Group boosted their price target on DigitalOcean from $50.00 to $78.00 and gave the company a "buy" rating in a report on Wednesday, February 25th. Barclays boosted their price target on DigitalOcean from $69.00 to $105.00 and gave the company an "overweight" rating in a report on Monday, April 20th. UBS Group boosted their price target on DigitalOcean from $62.00 to $97.00 and gave the company a "neutral" rating in a report on Tuesday, April 21st. Royal Bank Of Canada set a $60.00 price target on DigitalOcean in a report on Tuesday, February 24th. Finally, Stifel Nicolaus set a $57.00 price target on DigitalOcean in a report on Tuesday, February 24th. Nine equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently 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 company's stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $54.77, for a total transaction of $1,204,940.00. Following the sale, the chief accounting officer owned 62,469 shares in the company, valued at approximately $3,421,427.13. This represents a 26.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Matt Steinfort sold 20,000 shares of the company's stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $55.40, for a total value of $1,108,000.00. Following the sale, the chief financial officer owned 545,916 shares in the company, valued at $30,243,746.40. The trade was a 3.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.96% of the company's stock.

Institutional Trading of DigitalOcean

Institutional investors and hedge funds have recently bought and sold shares of the stock. Cresset Asset Management LLC bought a new stake in DigitalOcean during the third quarter worth about $306,000. Prelude Capital Management LLC bought a new stake in DigitalOcean during the third quarter worth about $281,000. Focus Partners Wealth bought a new stake in DigitalOcean during the third quarter worth about $274,000. Tower Research Capital LLC TRC raised its holdings in DigitalOcean by 170.3% during the second quarter. Tower Research Capital LLC TRC now owns 8,878 shares of the company's stock worth $254,000 after acquiring an additional 5,594 shares in the last quarter. Finally, CIBC Bancorp USA Inc. bought a new stake in DigitalOcean in the third quarter valued at approximately $249,000. Institutional investors own 49.77% of the company's stock.

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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