DigitalOcean (NYSE:DOCN) Updates FY 2025 Earnings Guidance

DigitalOcean (NYSE:DOCN) issued an update on its FY 2025 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 2.000-2.050 for the period, compared to the consensus earnings per share estimate of 1.800. The company issued revenue guidance of $896.0 million-$897.0 million, compared to the consensus revenue estimate of $890.4 million. DigitalOcean also updated its Q4 2025 guidance to 0.350-0.400 EPS.

DigitalOcean Stock Down 5.6%

DOCN stock opened at $39.11 on Wednesday. DigitalOcean has a twelve month low of $25.45 and a twelve month high of $47.02. The firm has a market cap of $3.56 billion, a PE ratio of 30.08, a price-to-earnings-growth ratio of 2.35 and a beta of 1.78. The business has a 50 day moving average of $37.15 and a 200 day moving average of $32.16.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings data on Tuesday, August 5th. The company reported $0.59 earnings per share for the quarter, beating analysts’ consensus estimates of $0.47 by $0.12. DigitalOcean had a negative return on equity of 73.19% and a net margin of 15.18%.The company had revenue of $218.70 million during the quarter, compared to analyst estimates of $216.62 million. During the same quarter last year, the company earned $0.48 EPS. The firm’s revenue for the quarter was up 13.6% on a year-over-year basis. On average, research analysts expect that DigitalOcean will post 1.01 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on DOCN shares. Morgan Stanley raised their price objective on DigitalOcean from $41.00 to $44.00 and gave the company an “overweight” rating in a research report on Wednesday, August 6th. UBS Group assumed coverage on DigitalOcean in a report on Tuesday, October 7th. They issued a “neutral” rating and a $40.00 target price for the company. Weiss Ratings reissued a “hold (c)” rating on shares of DigitalOcean in a report on Wednesday, October 8th. Barclays lifted their target price on DigitalOcean from $38.00 to $40.00 and gave the stock an “overweight” rating in a report on Wednesday, August 6th. Finally, Stifel Nicolaus set a $36.00 target price on DigitalOcean in a report on Tuesday, August 5th. Six equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, DigitalOcean presently has a consensus rating of “Hold” and a consensus target price of $42.73.

Insider Activity

In other news, insider Bratin Saha sold 13,010 shares of the firm’s stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $31.87, for a total value of $414,628.70. Following the transaction, the insider directly owned 269,465 shares in the company, valued at $8,587,849.55. This trade represents a 4.61% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. 0.74% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On DigitalOcean

A number of institutional investors and hedge funds have recently modified their holdings of the company. Lazard Asset Management LLC boosted its stake in shares of DigitalOcean by 34.5% in the 2nd quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company’s stock worth $47,430,000 after buying an additional 426,264 shares during the last quarter. Qube Research & Technologies Ltd boosted its stake in shares of DigitalOcean by 69.7% in the 2nd quarter. Qube Research & Technologies Ltd now owns 414,643 shares of the company’s stock worth $11,842,000 after buying an additional 170,339 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of DigitalOcean by 5.0% in 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 worth $11,342,000 after buying an additional 16,162 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of DigitalOcean by 3.4% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 308,072 shares of the company’s stock worth $8,799,000 after buying an additional 10,234 shares during the last quarter. Finally, Ameriprise Financial Inc. boosted its stake in shares of DigitalOcean by 16.4% in the 2nd quarter. Ameriprise Financial Inc. now owns 299,566 shares of the company’s stock worth $8,556,000 after buying an additional 42,201 shares during the last quarter. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

DigitalOcean Company Profile

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).