DigitalOcean (NYSE:DOCN) Updates 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 1.100-1.200 for the period, compared to the consensus earnings per share estimate of 0.870. The company issued revenue guidance of $1.1 billion-$1.1 billion, compared to the consensus revenue estimate of $1.1 billion. DigitalOcean also updated its Q2 2026 guidance to 0.200-0.230 EPS.

DigitalOcean Trading Up 5.1%

Shares of DOCN stock opened at $108.02 on Tuesday. The business’s 50-day moving average price is $77.95 and its 200-day moving average price is $59.86. DigitalOcean has a 12 month low of $25.56 and a 12 month high of $109.13. The firm has a market capitalization of $11.27 billion, a price-to-earnings ratio of 42.70 and a beta of 1.42.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, topping analysts’ consensus estimates of $0.27 by $0.17. The company had revenue of $257.91 million for the quarter, compared to analyst estimates of $249.76 million. DigitalOcean had a negative return on equity of 127.00% and a net margin of 28.76%.DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. On average, sell-side analysts predict that DigitalOcean will post 0.4 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of equities analysts recently commented on DOCN shares. Royal Bank Of Canada set a $60.00 price objective on DigitalOcean in a research note on Tuesday, February 24th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of DigitalOcean in a research note on Friday, March 27th. UBS Group lifted their price objective on DigitalOcean from $62.00 to $97.00 and gave the stock a “neutral” rating in a research note on Tuesday, April 21st. Citigroup lifted their price objective on DigitalOcean from $75.00 to $115.00 and gave the stock a “buy” rating in a research note on Tuesday, April 28th. Finally, Bank of America lifted their price objective on DigitalOcean from $103.00 to $107.00 and gave the stock a “buy” rating in a research note on Thursday, April 9th. Nine investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, DigitalOcean presently has an average rating of “Moderate Buy” and a consensus target price of $91.08.

Insider Buying and Selling

In other DigitalOcean news, CFO Matt Steinfort sold 20,000 shares of DigitalOcean stock in a transaction that occurred on 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 completion of the sale, the chief financial officer directly owned 545,916 shares in the company, valued at approximately $30,243,746.40. The trade was a 3.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Cherie Barrett sold 22,000 shares of DigitalOcean stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $54.77, for a total value of $1,204,940.00. Following the completion of the sale, the chief accounting officer owned 62,469 shares of the company’s stock, valued at approximately $3,421,427.13. The trade was a 26.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.96% of the company’s stock.

Institutional Investors Weigh In On DigitalOcean

Hedge funds have recently added to or reduced their stakes in the business. Allworth Financial LP increased its holdings 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 purchasing an additional 255 shares in the last quarter. Transamerica Financial Advisors LLC increased its holdings in DigitalOcean by 417.9% in 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. increased its holdings in shares of DigitalOcean by 242.1% during the fourth quarter. UMB Bank n.a. now owns 821 shares of the company’s stock valued at $40,000 after acquiring an additional 581 shares in the last quarter. Wilmington Savings Fund Society FSB bought a new stake in shares of DigitalOcean during the third quarter valued at approximately $37,000. Finally, Advisory Services Network LLC bought a new stake in shares of DigitalOcean during the third quarter valued at approximately $54,000. 49.77% of the stock is currently owned by institutional investors.

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.