DigitalOcean (NYSE:DOCN) Announces Quarterly Earnings Results, Beats Expectations By $0.23 EPS

DigitalOcean (NYSE:DOCN) issued its earnings results on Wednesday. The company reported $0.54 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.31 by $0.23, Briefing.com reports. DigitalOcean had a net margin of 29.15% and a negative return on equity of 92.51%. The firm had revenue of $229.63 million for the quarter, compared to analysts’ expectations of $226.55 million. During the same quarter last year, the company posted $0.52 earnings per share. DigitalOcean’s revenue was up 15.9% on a year-over-year basis. DigitalOcean updated its Q4 2025 guidance to 0.350-0.400 EPS and its FY 2025 guidance to 2.000-2.050 EPS.

DigitalOcean Stock Up 5.1%

DigitalOcean stock traded up $2.40 during mid-day trading on Friday, hitting $49.48. The company’s stock had a trading volume of 3,660,506 shares, compared to its average volume of 2,038,990. The stock has a market capitalization of $4.50 billion, a P/E ratio of 19.95, a P/E/G ratio of 2.60 and a beta of 1.78. DigitalOcean has a twelve month low of $25.45 and a twelve month high of $49.62. The stock’s fifty day moving average price is $37.69 and its two-hundred day moving average price is $32.35.

Insider Buying and Selling at DigitalOcean

In related news, insider Bratin Saha sold 13,010 shares of the stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $31.87, for a total value of $414,628.70. Following the completion of the sale, the insider directly owned 269,465 shares of the company’s stock, valued at approximately $8,587,849.55. This represents a 4.61% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.96% of the stock is currently owned by company insiders.

Institutional Trading of DigitalOcean

Several large investors have recently made changes to their positions in DOCN. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised 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 valued at $11,342,000 after acquiring an additional 16,162 shares in the last quarter. Intech Investment Management LLC grew its holdings in DigitalOcean by 59.2% during the first quarter. Intech Investment Management LLC now owns 39,429 shares of the company’s stock valued at $1,317,000 after purchasing an additional 14,655 shares during the last quarter. Amundi raised its position in shares of DigitalOcean by 126,552.2% in the second quarter. Amundi now owns 29,130 shares of the company’s stock valued at $827,000 after purchasing an additional 29,107 shares during the period. Jump Financial LLC bought a new position in shares of DigitalOcean in the second quarter valued at approximately $3,212,000. Finally, Qube Research & Technologies Ltd lifted its stake in shares of DigitalOcean by 69.7% in the second 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. Institutional investors own 49.77% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on DOCN shares. Canaccord Genuity Group raised their price target on DigitalOcean from $55.00 to $60.00 and gave the stock a “buy” rating in a report on Thursday. Bank of America raised shares of DigitalOcean from an “underperform” rating to a “buy” rating and boosted their price target for the company from $34.00 to $60.00 in a report on Thursday. Wall Street Zen upgraded shares of DigitalOcean from a “hold” rating to a “buy” rating in a research report on Saturday, November 1st. Weiss Ratings reiterated a “hold (c)” rating on shares of DigitalOcean in a research report on Wednesday, October 8th. Finally, Barclays upped their target price on shares of DigitalOcean from $40.00 to $49.00 and gave the stock an “overweight” rating in a research report on Thursday. Seven investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $47.73.

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).