KeyCorp Estimates DigitalOcean's Q2 Earnings (NYSE:DOCN)

Key Points

• KeyCorp initiated Q2 2026 EPS coverage for DigitalOcean at $0.07 per share and kept a Strong-Buy rating on the stock. It also projected full-year 2026 EPS of $0.47 and FY2029 EPS of $3.06.
• DigitalOcean recently reported better-than-expected Q1 results, earning $0.44 EPS versus the $0.27 consensus and posting $257.91 million in revenue, up 22.4% year over year. The company also raised guidance for Q2 2026 and fiscal 2026.
• The stock has drawn broadly bullish analyst sentiment, with multiple firms raising price targets and the consensus rating sitting at Moderate Buy with an average target price of $146.36. Shares were also highlighted as trading near their 52-week high after a recent 4.1% move higher.

DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) - Analysts at KeyCorp issued their Q2 2026 earnings per share (EPS) estimates for shares of DigitalOcean in a research note issued on Tuesday, June 2nd. KeyCorp analyst J. Ader expects that the company will post earnings of $0.07 per share for the quarter. KeyCorp has a "Strong-Buy" rating on the stock. The consensus estimate for DigitalOcean's current full-year earnings is $0.55 per share. KeyCorp also issued estimates for DigitalOcean's Q3 2026 earnings at $0.07 EPS, Q4 2026 earnings at $0.11 EPS, FY2026 earnings at $0.47 EPS and FY2029 earnings at $3.06 EPS.

Several other analysts also recently weighed in on DOCN. Stifel Nicolaus set a $57.00 target price on DigitalOcean in a report on Tuesday, February 24th. Cantor Fitzgerald boosted their target price on DigitalOcean from $68.00 to $83.00 and gave the company an "overweight" rating in a report on Wednesday, February 25th. Weiss Ratings reissued a "hold (c+)" rating on shares of DigitalOcean in a report on Friday, March 27th. Canaccord Genuity Group boosted their target price on DigitalOcean from $120.00 to $200.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. Finally, The Goldman Sachs Group boosted their target price on DigitalOcean from $78.00 to $179.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $146.36.

DigitalOcean Stock Up 4.1%

DigitalOcean stock opened at $180.88 on Friday. DigitalOcean has a fifty-two week low of $25.56 and a fifty-two week high of $184.46. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.46 and a current ratio of 1.46. The company has a market capitalization of $18.88 billion, a P/E ratio of 78.99 and a beta of 1.60. The stock has a 50-day simple moving average of $120.95 and a 200-day simple moving average of $78.77.

DigitalOcean (NYSE:DOCN - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $0.44 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.27 by $0.17. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.The company had revenue of $257.91 million during the quarter, compared to the consensus estimate of $249.76 million. During the same period in the previous year, the business earned $0.56 EPS. DigitalOcean's revenue for the quarter was up 22.4% on a year-over-year basis. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS.

Insider Activity

In related news, CFO Matt Steinfort sold 25,000 shares of the business's stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $152.50, for a total value of $3,812,500.00. Following the transaction, the chief financial officer owned 573,272 shares in the company, valued at $87,423,980. The trade was a 4.18% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Hilary Schneider sold 4,338 shares of the business's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $156.38, for a total value of $678,376.44. Following the completion of the transaction, the director owned 24,323 shares in the company, valued at $3,803,630.74. This trade represents a 15.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 39,338 shares of company stock worth $6,191,576 in the last 90 days. 0.96% of the stock is currently owned by insiders.

Hedge Funds Weigh In On DigitalOcean

Several institutional investors have recently added to or reduced their stakes in DOCN. Principal Financial Group Inc. increased its position in DigitalOcean by 155.3% in the 1st quarter. Principal Financial Group Inc. now owns 1,108,420 shares of the company's stock valued at $95,080,000 after acquiring an additional 674,231 shares during the period. Alyeska Investment Group L.P. acquired a new position in DigitalOcean in the 3rd quarter valued at about $21,808,000. Arrowstreet Capital Limited Partnership increased its position in DigitalOcean by 90.9% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,194,845 shares of the company's stock valued at $57,496,000 after acquiring an additional 568,823 shares during the period. Vanguard Group Inc. increased its position in DigitalOcean by 5.0% in the 3rd quarter. Vanguard Group Inc. now owns 9,362,889 shares of the company's stock valued at $319,836,000 after acquiring an additional 442,617 shares during the period. Finally, Franklin Resources Inc. increased its position in DigitalOcean by 784.2% in the 4th quarter. Franklin Resources Inc. now owns 494,314 shares of the company's stock valued at $23,786,000 after acquiring an additional 438,411 shares during the period. Institutional investors and hedge funds own 49.77% of the company's stock.

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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