DigitalOcean (NYSE:DOCN) Issues FY 2026 Earnings Guidance

DigitalOcean (NYSE:DOCN) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 1.350-1.400 for the period, compared to the consensus EPS estimate of 1.060. The company issued revenue guidance of $1.2 billion-$1.2 billion, compared to the consensus revenue estimate of $1.1 billion. DigitalOcean also updated its Q3 2026 guidance to 0.280-0.300 EPS.

Analysts Set New Price Targets

DOCN has been the subject of several analyst reports. Bank of America raised their price objective on DigitalOcean from $103.00 to $107.00 and gave the company a “buy” rating in a research note on Thursday, April 9th. The Goldman Sachs Group lifted their price target on shares of DigitalOcean from $78.00 to $179.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. KeyCorp initiated coverage on shares of DigitalOcean in a research report on Tuesday, June 2nd. They issued an “overweight” rating and a $200.00 price objective for the company. Stifel Nicolaus raised shares of DigitalOcean from a “hold” rating to a “buy” rating and upped their price target for the stock from $135.00 to $160.00 in a research report on Tuesday, July 21st. Finally, Citigroup lifted their target price on DigitalOcean from $185.00 to $190.00 and gave the company a “buy” rating in a research note on Wednesday. Two investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, DigitalOcean presently has a consensus rating of “Moderate Buy” and an average target price of $151.33.

DigitalOcean Stock Performance

DOCN traded up $0.94 during trading on Thursday, reaching $125.40. 154,044 shares of the company’s stock were exchanged, compared to its average volume of 3,872,579. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.31 and a quick ratio of 1.46. DigitalOcean has a 1 year low of $28.79 and a 1 year high of $187.50. The company’s fifty day simple moving average is $145.46 and its 200-day simple moving average is $107.98. The stock has a market capitalization of $13.09 billion, a P/E ratio of 56.98 and a beta of 1.61.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $0.45 EPS for the quarter, beating the consensus estimate of $0.26 by $0.19. The company had revenue of $281.18 million for the quarter, compared to analyst estimates of $279.03 million. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The firm’s revenue was up 28.6% on a year-over-year basis. During the same period in the prior year, the company earned $0.39 earnings per share. DigitalOcean has set its FY 2026 guidance at 1.350-1.400 EPS and its Q3 2026 guidance at 0.280-0.300 EPS. As a group, research analysts predict that DigitalOcean will post 0.57 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Hilary Schneider sold 4,338 shares of the 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 sale, the director directly owned 24,323 shares in the company, valued at $3,803,630.74. This represents a 15.14% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Matt Steinfort sold 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $170.07, for a total value of $1,700,700.00. Following the transaction, the chief financial officer owned 538,414 shares in the company, valued at approximately $91,568,068.98. This represents a 1.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders sold a total of 39,338 shares of company stock worth $6,191,576 in the last three months. 0.96% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On DigitalOcean

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Allworth Financial LP lifted its stake in DigitalOcean by 54.4% in the third quarter. Allworth Financial LP now owns 724 shares of the company’s stock worth $25,000 after acquiring an additional 255 shares during the last quarter. Transamerica Financial Advisors LLC grew its stake in shares of DigitalOcean by 417.9% during the fourth quarter. Transamerica Financial Advisors LLC now owns 782 shares of the company’s stock worth $38,000 after purchasing an additional 631 shares in the last quarter. UMB Bank n.a. raised its stake in DigitalOcean by 242.1% in the fourth quarter. UMB Bank n.a. now owns 821 shares of the company’s stock valued at $40,000 after buying an additional 581 shares in the last quarter. Wilmington Savings Fund Society FSB acquired a new position in shares of DigitalOcean during the 3rd quarter worth about $37,000. Finally, Advisory Services Network LLC purchased a new position in shares of DigitalOcean in the 3rd quarter valued at about $54,000. Hedge funds and other 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.