DigitalOcean (NYSE:DOCN) Releases Q3 2026 Earnings Guidance

DigitalOcean (NYSE:DOCN) 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 EPS 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 research firms recently issued reports on DOCN. Robert W. Baird initiated coverage on DigitalOcean in a research report on Tuesday, July 21st. They set an “outperform” rating and a $165.00 price objective for the company. Piper Sandler upped their price target on shares of DigitalOcean from $98.00 to $155.00 and gave the stock a “neutral” rating in a research note on Tuesday, May 5th. Stifel Nicolaus upgraded shares of DigitalOcean from a “hold” rating to a “buy” rating and raised their price objective for the company from $135.00 to $160.00 in a research note on Tuesday, July 21st. Canaccord Genuity Group reaffirmed a “buy” rating and set a $200.00 price target on shares of DigitalOcean in a research note on Friday, July 10th. Finally, Weiss Ratings cut shares of DigitalOcean from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, July 28th. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $151.33.

DigitalOcean Stock Performance

Shares of DOCN traded up $0.94 during mid-day trading on Thursday, hitting $125.40. The company’s stock had a trading volume of 154,044 shares, compared to its average volume of 3,872,579. The firm has a market capitalization of $13.09 billion, a PE ratio of 56.98 and a beta of 1.61. DigitalOcean has a one year low of $28.79 and a one year high of $187.50. The stock’s 50-day moving average is $145.46 and its two-hundred day moving average is $107.98. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.46 and a current ratio of 1.31.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $0.45 earnings per share for the quarter, beating analysts’ consensus estimates of $0.26 by $0.19. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The firm had revenue of $281.18 million during the quarter, compared to the consensus estimate of $279.03 million. During the same period in the prior year, the firm earned $0.39 EPS. The business’s 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, sell-side analysts anticipate that DigitalOcean will post 0.57 EPS for the current year.

Insider Activity

In other news, Director Hilary Schneider sold 4,338 shares of the business’s stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $156.38, for a total transaction of $678,376.44. Following the sale, the director directly owned 24,323 shares in the company, valued at approximately $3,803,630.74. The trade was a 15.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Matt Steinfort sold 25,000 shares of the firm’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $152.50, for a total value of $3,812,500.00. Following the completion of the transaction, the chief financial officer directly owned 573,272 shares of the company’s stock, valued at approximately $87,423,980. This trade represents a 4.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 39,338 shares of company stock worth $6,191,576 over the last 90 days. Corporate insiders own 0.96% of the company’s stock.

Institutional Trading of DigitalOcean

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Alyeska Investment Group L.P. bought a new position in shares of DigitalOcean during the third quarter worth about $21,808,000. Arrowstreet Capital Limited Partnership lifted its stake in shares of DigitalOcean by 90.9% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,194,845 shares of the company’s stock valued at $57,496,000 after buying an additional 568,823 shares in the last quarter. Franklin Resources Inc. grew its position in DigitalOcean by 784.2% during the fourth quarter. Franklin Resources Inc. now owns 494,314 shares of the company’s stock valued at $23,786,000 after buying an additional 438,411 shares during the period. Danske Bank A S purchased a new stake in DigitalOcean during the 3rd quarter worth about $14,582,000. Finally, Lazard Asset Management LLC boosted its stake in DigitalOcean by 34.5% in the second quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company’s stock worth $47,430,000 after buying an additional 426,264 shares in the last quarter. 49.77% of the stock is owned by 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.