KeyCorp Weighs in on DigitalOcean’s Q2 Earnings (NYSE:DOCN)

DigitalOcean Holdings, Inc. (NYSE:DOCN) – Equities researchers at KeyCorp increased their Q2 2026 EPS estimates for DigitalOcean in a note issued to investors on Tuesday, July 7th. KeyCorp analyst J. Ader now expects that the company will post earnings of $0.09 per share for the quarter, up from their prior forecast of $0.07. KeyCorp has a “Strong-Buy” rating on the stock. The consensus estimate for DigitalOcean’s current full-year earnings is $0.55 per share. KeyCorp also issued estimates for DigitalOcean’s Q3 2026 earnings at $0.09 EPS, Q4 2026 earnings at $0.12 EPS, FY2026 earnings at $0.51 EPS, FY2027 earnings at $1.50 EPS, FY2028 earnings at $2.44 EPS and FY2029 earnings at $3.24 EPS.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $0.44 earnings per share for the quarter, topping analysts’ consensus estimates of $0.27 by $0.17. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The firm had revenue of $257.90 million during the quarter, compared to analysts’ expectations of $249.76 million. During the same period in the prior year, the company earned $0.56 EPS. The firm’s revenue was up 22.4% on a year-over-year basis. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS.

DOCN has been the topic of a number of other reports. Morgan Stanley boosted their target price on shares of DigitalOcean from $75.00 to $175.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. Oppenheimer set a $190.00 price target on shares of DigitalOcean in a research note on Wednesday, May 6th. Weiss Ratings upgraded shares of DigitalOcean from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday. Piper Sandler upped their price objective on shares of DigitalOcean from $98.00 to $155.00 and gave the company a “neutral” rating in a research report on Tuesday, May 5th. Finally, Bank of America raised their target price on DigitalOcean from $103.00 to $107.00 and gave the company a “buy” rating in a research note on Thursday, April 9th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $145.36.

DigitalOcean Stock Down 5.5%

Shares of NYSE:DOCN opened at $123.27 on Tuesday. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.92. DigitalOcean has a 52-week low of $25.56 and a 52-week high of $187.50. The company has a 50 day moving average of $156.90 and a two-hundred day moving average of $99.37. The company has a market capitalization of $12.86 billion, a price-to-earnings ratio of 53.83 and a beta of 1.57.

Institutional Investors Weigh In On DigitalOcean

A number of institutional investors have recently made changes to their positions in DOCN. State of New Jersey Common Pension Fund D acquired a new stake in DigitalOcean during the fourth quarter worth about $2,358,000. New York State Teachers Retirement System boosted its stake in DigitalOcean by 33.0% in the fourth quarter. New York State Teachers Retirement System now owns 49,310 shares of the company’s stock valued at $2,373,000 after acquiring an additional 12,229 shares during the period. SG Americas Securities LLC grew its holdings in shares of DigitalOcean by 266.1% during the fourth quarter. SG Americas Securities LLC now owns 167,126 shares of the company’s stock valued at $8,042,000 after purchasing an additional 121,473 shares during the last quarter. Legato Capital Management LLC bought a new position in shares of DigitalOcean during the fourth quarter valued at approximately $1,365,000. Finally, Campbell Newman Asset Management Inc. acquired a new stake in shares of DigitalOcean during the 4th quarter worth approximately $2,101,000. 49.77% of the stock is currently owned by institutional investors.

Insider Buying and Selling at DigitalOcean

In other DigitalOcean news, Director Hilary Schneider sold 4,338 shares of the stock in a transaction on Friday, May 15th. The shares were sold at an average price of $156.38, for a total transaction of $678,376.44. Following the transaction, the director directly owned 24,323 shares in the company, valued at $3,803,630.74. This represents a 15.14% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Matt Steinfort sold 10,000 shares of the company’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $170.07, for a total transaction of $1,700,700.00. Following the completion of the sale, the chief financial officer owned 538,414 shares in the company, valued at approximately $91,568,068.98. This trade represents a 1.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 39,338 shares of company stock worth $6,191,576 over the last ninety days. 0.96% of the stock is currently owned by corporate insiders.

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.