DigitalOcean (NYSE:DOCN) Issues FY 2026 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share guidance of 0.750-1.000 for the period, compared to the consensus earnings per share estimate of 1.680. 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 Q1 2026 guidance to 0.220-0.270 EPS.

DigitalOcean Stock Performance

Shares of NYSE:DOCN opened at $58.86 on Tuesday. The business’s fifty day moving average price is $55.41 and its two-hundred day moving average price is $44.92. The stock has a market cap of $5.38 billion, a PE ratio of 23.73, a price-to-earnings-growth ratio of 8.94 and a beta of 1.76. DigitalOcean has a one year low of $25.45 and a one year high of $70.43.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings results on Tuesday, February 24th. The company reported $0.44 earnings per share for the quarter, topping analysts’ consensus estimates of $0.38 by $0.06. DigitalOcean had a negative return on equity of 92.51% and a net margin of 29.15%.During the same period in the previous year, the business earned $0.49 earnings per share. The business’s revenue was up 18.3% on a year-over-year basis. DigitalOcean has set its FY 2026 guidance at 0.750-1.000 EPS and its Q1 2026 guidance at 0.220-0.270 EPS. As a group, equities research analysts predict that DigitalOcean will post 1.01 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on DOCN shares. Bank of America raised their price objective on DigitalOcean from $60.00 to $72.00 and gave the stock a “buy” rating in a report on Tuesday, January 27th. Wall Street Zen cut DigitalOcean from a “buy” rating to a “hold” rating in a research note on Sunday, January 4th. Canaccord Genuity Group increased their target price on DigitalOcean from $65.00 to $80.00 and gave the stock a “buy” rating in a report on Friday. UBS Group lifted their price target on shares of DigitalOcean from $40.00 to $48.00 and gave the company a “neutral” rating in a report on Thursday, November 6th. Finally, Oppenheimer assumed coverage on shares of DigitalOcean in a report on Monday, November 10th. They set an “outperform” rating and a $60.00 price target for the company. Eight research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $53.92.

Institutional Investors Weigh In On DigitalOcean

A number of institutional investors and hedge funds have recently bought and sold shares of DOCN. Empowered Funds LLC raised its holdings in shares of DigitalOcean by 10.0% in the 4th quarter. Empowered Funds LLC now owns 22,470 shares of the company’s stock worth $1,081,000 after purchasing an additional 2,038 shares in the last quarter. Tocqueville Asset Management L.P. bought a new stake in DigitalOcean during the third quarter worth approximately $407,000. Vanguard Personalized Indexing Management LLC grew its position in DigitalOcean by 23.8% in the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 9,877 shares of the company’s stock worth $475,000 after buying an additional 1,899 shares during the last quarter. Caption Management LLC increased its holdings in shares of DigitalOcean by 148.4% in the second quarter. Caption Management LLC now owns 18,463 shares of the company’s stock valued at $527,000 after buying an additional 56,604 shares in the last quarter. Finally, Elo Mutual Pension Insurance Co acquired a new stake in shares of DigitalOcean during the 4th quarter valued at $601,000. 49.77% of the stock is owned by institutional investors and hedge funds.

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.