DigitalOcean (NYSE:DOCN) Releases Q3 2026 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its third quarter 2026 earnings guidance on Tuesday morning. The company provided EPS 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.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on DOCN. Barclays dropped their price objective on DigitalOcean from $184.00 to $160.00 and set an “overweight” rating on the stock in a research report on Tuesday, July 21st. Citigroup boosted their price objective on shares of DigitalOcean from $180.00 to $185.00 and gave the stock a “buy” rating in a research note on Wednesday, July 8th. The Goldman Sachs Group raised their target price on shares of DigitalOcean from $78.00 to $179.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. Stifel Nicolaus upgraded DigitalOcean from a “hold” rating to a “buy” rating and boosted their target price for the stock from $135.00 to $160.00 in a research note on Tuesday, July 21st. Finally, Bank of America boosted their price target on DigitalOcean from $103.00 to $107.00 and gave the stock a “buy” rating in a research note on Thursday, April 9th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $151.93.

DigitalOcean Stock Up 0.8%

DOCN traded up $1.01 on Tuesday, hitting $128.18. 3,404,720 shares of the company were exchanged, compared to its average volume of 3,873,739. The firm has a 50-day moving average price of $146.62 and a two-hundred day moving average price of $106.94. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.92. DigitalOcean has a twelve month low of $28.79 and a twelve month high of $187.50. The company has a market cap of $13.38 billion, a price-to-earnings ratio of 56.12 and a beta of 1.61.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings results 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 analysts’ expectations of $249.76 million. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The firm’s revenue was up 22.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.56 EPS. On average, equities analysts predict that DigitalOcean will post 0.57 earnings per share for the current year.

Insider Buying and Selling at DigitalOcean

In other DigitalOcean news, Director Hilary Schneider sold 4,338 shares of DigitalOcean stock in a transaction dated 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 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 sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Matt Steinfort sold 10,000 shares of the firm’s 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 transaction, the chief financial officer directly owned 538,414 shares of the company’s stock, valued at approximately $91,568,068.98. This trade represents a 1.82% decrease in their ownership of the stock. 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. In the last quarter, insiders sold 39,338 shares of company stock valued at $6,191,576. 0.96% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Pacer Advisors Inc. raised its holdings in shares of DigitalOcean by 225.7% in the 4th quarter. Pacer Advisors Inc. now owns 16,426 shares of the company’s stock worth $790,000 after purchasing an additional 11,382 shares during the period. Invesco Ltd. raised its stake in shares of DigitalOcean by 12.3% in the 4th quarter. Invesco Ltd. now owns 288,571 shares of the company’s stock valued at $13,886,000 after acquiring an additional 31,618 shares during the period. Mercer Global Advisors Inc. ADV acquired a new position in shares of DigitalOcean during the 4th quarter valued at $400,000. Vident Advisory LLC acquired a new stake in DigitalOcean in the 4th quarter valued at $438,000. Finally, Mackenzie Financial Corp purchased a new position in DigitalOcean in the fourth quarter valued at about $209,000. Hedge funds and other institutional investors own 49.77% of the company’s stock.

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.