DigitalOcean (NYSE:DOCN) Announces Quarterly Earnings Results

DigitalOcean (NYSE:DOCN) posted its quarterly earnings data on Tuesday. The company reported $0.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.38 by $0.06, Briefing.com reports. DigitalOcean had a net margin of 29.15% and a negative return on equity of 92.51%. During the same quarter in the prior year, the business posted $0.49 EPS. The firm’s revenue was up 18.3% compared to the same quarter last year. DigitalOcean updated its FY 2026 guidance to 0.750-1.000 EPS and its Q1 2026 guidance to 0.220-0.270 EPS.

DigitalOcean Trading Down 7.5%

NYSE:DOCN opened at $58.86 on Tuesday. DigitalOcean has a 12 month low of $25.45 and a 12 month high of $70.43. The firm’s 50 day moving average is $55.41 and its 200 day moving average is $44.92. The stock has a market capitalization 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.

Analyst Upgrades and Downgrades

DOCN has been the topic of a number of recent analyst reports. Weiss Ratings reissued a “hold (c+)” rating on shares of DigitalOcean in a research report on Monday, December 29th. UBS Group lifted their target price on shares of DigitalOcean from $40.00 to $48.00 and gave the stock a “neutral” rating in a research report on Thursday, November 6th. Wall Street Zen downgraded DigitalOcean from a “buy” rating to a “hold” rating in a research note on Sunday, January 4th. Piper Sandler increased their price target on DigitalOcean from $47.00 to $50.00 and gave the company a “neutral” rating in a research report on Monday, January 5th. Finally, Bank of America boosted their price objective on DigitalOcean from $60.00 to $72.00 and gave the stock a “buy” rating in a research report on Tuesday, January 27th. Eight investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $53.92.

Institutional Trading of DigitalOcean

Hedge funds have recently made changes to their positions in the company. Fuller & Thaler Asset Management Inc. lifted its position in shares of DigitalOcean by 11.6% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 2,420,341 shares of the company’s stock valued at $116,467,000 after buying an additional 252,303 shares during the last quarter. Lazard Asset Management LLC raised its stake in DigitalOcean by 34.5% in the 2nd quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company’s stock valued at $47,430,000 after acquiring an additional 426,264 shares during the period. Dimensional Fund Advisors LP lifted its holdings in DigitalOcean by 2.4% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,359,695 shares of the company’s stock valued at $65,432,000 after purchasing an additional 31,682 shares during the last quarter. First Trust Advisors LP boosted its position in DigitalOcean by 19.8% during the fourth quarter. First Trust Advisors LP now owns 1,318,476 shares of the company’s stock worth $63,445,000 after purchasing an additional 217,457 shares during the period. Finally, Arrowstreet Capital Limited Partnership boosted its position in DigitalOcean by 90.9% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,194,845 shares of the company’s stock worth $57,496,000 after purchasing an additional 568,823 shares during the period. 49.77% of the stock is currently owned by institutional investors.

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.