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 1.350-1.400 for the period, compared to the consensus estimate of 1.060. The company issued revenue guidance of $1.2 billion-$1.2 billion, compared to the consensus revenue estimate of $1.1 billion. DigitalOcean also updated its Q3 2026 guidance to 0.280-0.300 EPS.

DigitalOcean Trading Down 0.6%

Shares of DOCN stock traded down $0.77 during mid-day trading on Tuesday, reaching $126.40. 3,243,306 shares of the stock traded hands, compared to its average volume of 3,872,711. The stock’s fifty day simple moving average is $146.62 and its two-hundred day simple moving average is $106.94. DigitalOcean has a 1-year low of $28.79 and a 1-year high of $187.50. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.92. The company has a market cap of $13.19 billion, a price-to-earnings ratio of 55.15 and a beta of 1.61.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.27 by $0.17. The company had revenue of $257.90 million during the quarter, compared to the consensus estimate of $249.76 million. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The company’s quarterly revenue was up 22.4% on a year-over-year basis. During the same quarter last year, the firm posted $0.56 EPS. On average, research analysts anticipate that DigitalOcean will post 0.57 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

DOCN has been the subject of a number of analyst reports. UBS Group dropped their price objective on DigitalOcean from $175.00 to $155.00 and set a “neutral” rating for the company in a research note on Wednesday, July 8th. Canaccord Genuity Group restated a “buy” rating and issued a $200.00 price objective on shares of DigitalOcean in a research report on Friday, July 10th. Oppenheimer set a $190.00 target price on DigitalOcean in a research note on Wednesday, May 6th. Weiss Ratings lowered DigitalOcean from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, July 28th. Finally, Robert W. Baird assumed coverage on DigitalOcean in a research note on Tuesday, July 21st. They set an “outperform” rating and a $165.00 target price on the stock. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $151.93.

Insider Buying and Selling at DigitalOcean

In related news, CFO Matt Steinfort sold 10,000 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $170.07, for a total transaction of $1,700,700.00. Following the completion of the transaction, the chief financial officer directly owned 538,414 shares of the company’s stock, valued at approximately $91,568,068.98. This represents a 1.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 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. Also, Director Hilary Schneider sold 4,338 shares of the firm’s 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 completion of the transaction, the director directly owned 24,323 shares of the company’s stock, valued at approximately $3,803,630.74. This trade represents a 15.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 39,338 shares of company stock worth $6,191,576. Corporate insiders own 0.96% of the company’s stock.

Institutional Trading of DigitalOcean

A number of institutional investors have recently modified their holdings of DOCN. Maryland State Retirement & Pension System increased its holdings in DigitalOcean by 1.9% in the fourth quarter. Maryland State Retirement & Pension System now owns 10,001 shares of the company’s stock valued at $481,000 after purchasing an additional 185 shares during the last quarter. Allworth Financial LP increased its position in DigitalOcean by 54.4% during the 3rd quarter. Allworth Financial LP now owns 724 shares of the company’s stock worth $25,000 after buying an additional 255 shares during the period. Man Group plc increased its position in DigitalOcean by 0.5% during the second quarter. Man Group plc now owns 82,485 shares of the company’s stock worth $2,356,000 after acquiring an additional 420 shares during the period. HighTower Advisors LLC increased its position in DigitalOcean by 7.8% during the fourth quarter. HighTower Advisors LLC now owns 7,519 shares of the company’s stock worth $362,000 after acquiring an additional 547 shares during the period. Finally, UMB Bank n.a. boosted its holdings in DigitalOcean by 242.1% in the 4th quarter. UMB Bank n.a. now owns 821 shares of the company’s stock valued at $40,000 after purchasing an additional 581 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.