DigitalOcean (NYSE:DOCN) Updates FY 2026 Earnings Guidance

DigitalOcean (NYSE:DOCN) issued an update on its FY 2026 earnings guidance on Tuesday morning. 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.

Analyst Ratings Changes

A number of analysts have commented on DOCN shares. Wall Street Zen cut shares of DigitalOcean from a “buy” rating to a “hold” rating in a research note on Sunday, January 4th. Bank of America raised their target price on shares of DigitalOcean from $60.00 to $72.00 and gave the company a “buy” rating in a research note on Tuesday, January 27th. Piper Sandler lifted their price target on DigitalOcean from $47.00 to $50.00 and gave the stock a “neutral” rating in a report on Monday, January 5th. Weiss Ratings restated a “hold (c+)” rating on shares of DigitalOcean in a research note on Monday, December 29th. Finally, Citigroup reaffirmed a “buy” rating on shares of DigitalOcean in a research report on Friday, February 13th. Eight investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $53.92.

DigitalOcean Stock Performance

Shares of DigitalOcean stock opened at $58.86 on Tuesday. The firm has a 50-day moving average of $55.41 and a 200-day moving average of $44.92. DigitalOcean has a 52-week low of $25.45 and a 52-week high of $70.43. The stock has a market cap of $5.38 billion, a PE ratio of 23.73, a PEG ratio of 8.94 and a beta of 1.76.

Institutional Trading of DigitalOcean

Several large investors have recently bought and sold shares of the business. Allworth Financial LP lifted its stake in DigitalOcean by 54.4% in the 3rd quarter. Allworth Financial LP now owns 724 shares of the company’s stock valued at $25,000 after purchasing an additional 255 shares during the last quarter. Transamerica Financial Advisors LLC boosted its holdings in shares of DigitalOcean by 417.9% during the 4th quarter. Transamerica Financial Advisors LLC now owns 782 shares of the company’s stock valued at $38,000 after acquiring an additional 631 shares in the last quarter. UMB Bank n.a. grew its position in DigitalOcean by 242.1% during the 4th quarter. UMB Bank n.a. now owns 821 shares of the company’s stock worth $40,000 after acquiring an additional 581 shares during the last quarter. Wilmington Savings Fund Society FSB acquired a new position in DigitalOcean in the 3rd quarter worth about $37,000. Finally, Advisory Services Network LLC bought a new position in DigitalOcean in the third quarter valued at about $54,000. 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.