DigitalOcean (NYSE:DOCN – Get Free Report) 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 earnings per share 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.
DigitalOcean Price Performance
DOCN stock opened at $130.75 on Tuesday. 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 business has a 50-day simple moving average of $146.62 and a two-hundred day simple moving average of $106.94. The company has a market capitalization of $13.65 billion, a P/E ratio of 58.40 and a beta of 1.61. DigitalOcean has a 52-week low of $28.79 and a 52-week high of $187.50.
DigitalOcean (NYSE:DOCN – Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.27 by $0.17. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The company had revenue of $257.90 million during the quarter, compared to the consensus estimate of $249.76 million. During the same quarter in the prior year, the company posted $0.56 earnings per share. The firm’s revenue for the quarter was up 22.4% on a year-over-year basis. Research analysts expect that DigitalOcean will post 0.57 EPS for the current fiscal year.
Analyst Upgrades and Downgrades
Insider Activity
In other news, Director Hilary Schneider sold 4,338 shares of DigitalOcean 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Matt Steinfort sold 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $170.07, for a total transaction of $1,700,700.00. Following the completion of the sale, the chief financial officer directly owned 538,414 shares in the company, valued at approximately $91,568,068.98. This trade represents a 1.82% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. In the last three months, insiders sold 39,338 shares of company stock valued at $6,191,576. 0.96% of the stock is currently owned by insiders.
Institutional Inflows and Outflows
Hedge funds have recently bought and sold shares of the business. Allworth Financial LP grew its position in shares of DigitalOcean by 54.4% in the third quarter. Allworth Financial LP now owns 724 shares of the company’s stock valued at $25,000 after purchasing an additional 255 shares in the last quarter. Transamerica Financial Advisors LLC lifted its holdings in DigitalOcean by 417.9% during the 4th 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. lifted its holdings in DigitalOcean by 242.1% during the 4th quarter. UMB Bank n.a. now owns 821 shares of the company’s stock worth $40,000 after purchasing an additional 581 shares in the last quarter. Wilmington Savings Fund Society FSB bought a new position in DigitalOcean in the 3rd quarter worth about $37,000. Finally, Advisory Services Network LLC bought a new position in DigitalOcean in the 3rd quarter worth about $54,000. 49.77% of the stock is currently owned by hedge funds and other institutional investors.
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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