DigitalOcean (NYSE:DOCN) Issues Q3 2026 Earnings Guidance

Posted by Francis Steltz on Aug 5th, 2026

DigitalOcean (NYSE:DOCN – Get Free Report) issued an update on its third quarter 2026 earnings guidance on Tuesday. The company provided earnings per share guidance of 0.280-0.300 for the period, compared to the consensus estimate of 0.240. The company issued revenue guidance of $304.0 million-$307.0 million, compared to the consensus revenue estimate of $294.0 million. DigitalOcean also updated its FY 2026 guidance to 1.350-1.400 EPS.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on DOCN shares. Bank of America lifted their price target on shares of DigitalOcean from $103.00 to $107.00 and gave the company a “buy” rating in a research report on Thursday, April 9th. Canaccord Genuity Group reiterated a “buy” rating and set a $200.00 price objective on shares of DigitalOcean in a report on Friday, July 10th. UBS Group cut their price target on shares of DigitalOcean from $175.00 to $155.00 and set a “neutral” rating on the stock in a research report on Wednesday, July 8th. Oppenheimer set a $190.00 price objective on shares of DigitalOcean in a research report on Wednesday, May 6th. Finally, Weiss Ratings lowered shares of DigitalOcean from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, July 28th. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $152.00.

Read Our Latest Stock Report on DigitalOcean

DigitalOcean Stock Down 5.7%

DOCN traded down $7.39 during trading on Wednesday, hitting $121.50. The company had a trading volume of 763,520 shares, compared to its average volume of 3,877,465. DigitalOcean has a 1-year low of $28.79 and a 1-year high of $187.50. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.46 and a quick ratio of 1.46. The business has a 50-day moving average of $145.98 and a 200-day moving average of $107.48. The company has a market cap of $12.68 billion, a PE ratio of 53.06 and a beta of 1.61.

DigitalOcean (NYSE:DOCN – Get Free Report) last announced its earnings results on Tuesday, August 4th. The company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.26 by $0.19. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.The business had revenue of $281.18 million during the quarter, compared to analysts’ expectations of $279.03 million. During the same quarter last year, the business posted $0.39 earnings per share. The company’s quarterly revenue was up 28.6% on a year-over-year basis. 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, analysts forecast that DigitalOcean will post 0.57 earnings per share for the current year.

Insider Activity at DigitalOcean

In other news, Director Hilary Schneider sold 4,338 shares of the stock in a transaction on Friday, May 15th. The shares were sold at an average price of $156.38, for a total transaction of $678,376.44. Following the transaction, the director owned 24,323 shares in the company, valued at $3,803,630.74. This represents a 15.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Matt Steinfort sold 10,000 shares of the company’s stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $170.07, for a total transaction of $1,700,700.00. Following the sale, the chief financial officer directly owned 538,414 shares of the company’s stock, 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 39,338 shares of company stock valued at $6,191,576 over the last three months. Insiders own 0.96% of the company’s stock.

Key DigitalOcean News

Here are the key news stories impacting DigitalOcean this week:

Positive Sentiment: DigitalOcean reported second-quarter adjusted earnings of $0.45 per share, well above the $0.26 analyst consensus, while revenue of $281.2 million exceeded expectations of $279.0 million and rose 28.6% year over year. DigitalOcean Beats Q2 Earnings and Revenue Estimates
Positive Sentiment: The company raised its full-year 2026 outlook to approximately $1.2 billion in revenue and $1.35-$1.40 in EPS, above consensus expectations of roughly $1.1 billion in revenue and $1.06 in EPS. Third-quarter guidance also topped estimates, with revenue of $304-$307 million and EPS of $0.28-$0.30. DigitalOcean Forecasts 2026 Revenue Growth
Positive Sentiment: Management’s outlook reflects stronger AI-native enterprise demand, including expanding inference services and a projected 35% or higher fourth-quarter exit growth rate. Analysts highlighted DigitalOcean’s approximately $1.1 billion annual recurring revenue and potential for 50% or greater growth acceleration in fiscal 2027. DigitalOcean Affirms Growth Acceleration
Positive Sentiment: A Seeking Alpha analyst upgraded the stock, arguing that DigitalOcean is well positioned to benefit from the AI cloud expansion and offers recurring-revenue exposure rather than relying primarily on one-time hardware sales. DigitalOcean AI Boom Upgrade
Neutral Sentiment: The initial market reaction was volatile despite the beat and raised outlook, suggesting investors were weighing the improved growth profile against elevated expectations and the stock’s premium valuation.

Institutional Trading of DigitalOcean

Several institutional investors and hedge funds have recently bought and sold shares of DOCN. Allworth Financial LP increased its stake in shares of DigitalOcean by 54.4% during the 3rd quarter. Allworth Financial LP now owns 724 shares of the company’s stock worth $25,000 after purchasing an additional 255 shares during the last quarter. Transamerica Financial Advisors LLC grew its holdings in 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 during the period. UMB Bank n.a. grew its holdings in DigitalOcean by 242.1% during the fourth quarter. UMB Bank n.a. now owns 821 shares of the company’s stock worth $40,000 after purchasing an additional 581 shares during the period. Wilmington Savings Fund Society FSB acquired a new position in DigitalOcean during the third quarter worth approximately $37,000. Finally, Advisory Services Network LLC acquired a new position in DigitalOcean during the third quarter worth approximately $54,000. Institutional investors own 49.77% of the company’s stock.

About DigitalOcean

(Get Free Report)

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.