DigitalOcean (NYSE:DOCN) Updates Q1 2026 Earnings Guidance

DigitalOcean (NYSE:DOCN) issued an update on its first quarter 2026 earnings guidance on Tuesday morning. The company provided EPS guidance of 0.220-0.270 for the period, compared to the consensus EPS estimate of 0.390. The company issued revenue guidance of $249.0 million-$250.0 million, compared to the consensus revenue estimate of $248.5 million. DigitalOcean also updated its FY 2026 guidance to 0.750-1.000 EPS.

DigitalOcean Trading Down 7.5%

Shares of NYSE:DOCN opened at $58.86 on Tuesday. The company has a market cap of $5.38 billion, a price-to-earnings ratio of 23.73, a price-to-earnings-growth ratio of 8.94 and a beta of 1.76. The company has a 50-day moving average price of $55.41 and a 200-day moving average price of $44.92. DigitalOcean has a 12 month low of $25.45 and a 12 month high of $70.43.

DigitalOcean (NYSE:DOCN) last released its earnings results on Tuesday, February 24th. The company reported $0.44 EPS for the quarter, beating analysts’ consensus estimates of $0.38 by $0.06. DigitalOcean had a negative return on equity of 92.51% and a net margin of 29.15%.The company’s revenue for the quarter was up 18.3% on a year-over-year basis. During the same period in the previous year, the firm posted $0.49 earnings per share. DigitalOcean has set its FY 2026 guidance at 0.750-1.000 EPS and its Q1 2026 guidance at 0.220-0.270 EPS. As a group, research analysts forecast that DigitalOcean will post 1.01 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on DOCN. Oppenheimer initiated coverage on shares of DigitalOcean in a report on Monday, November 10th. They issued an “outperform” rating and a $60.00 price objective for the company. Bank of America upped their target price on shares of DigitalOcean from $60.00 to $72.00 and gave the company a “buy” rating in a report on Tuesday, January 27th. Barclays raised their price objective on DigitalOcean from $49.00 to $63.00 and gave the stock an “overweight” rating in a research note on Monday, January 12th. Weiss Ratings restated a “hold (c+)” rating on shares of DigitalOcean in a research note on Monday, December 29th. Finally, Cantor Fitzgerald raised DigitalOcean from a “neutral” rating to an “overweight” rating and lifted their target price for the stock from $47.00 to $68.00 in a report on Thursday, February 5th. Eight equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat, DigitalOcean presently has an average rating of “Moderate Buy” and a consensus price target of $53.92.

Institutional Trading of DigitalOcean

Several hedge funds and other institutional investors have recently made changes to their positions in the business. CIBC Bancorp USA Inc. purchased a new stake in DigitalOcean during the 3rd quarter valued at about $249,000. O Shaughnessy Asset Management LLC purchased a new position in DigitalOcean in the fourth quarter valued at $221,000. Cibc World Markets Corp acquired a new position in DigitalOcean in the 4th quarter worth about $218,000. Marex Group plc purchased a new position in shares of DigitalOcean during the 4th quarter valued at approximately $209,000. Finally, Mackenzie Financial Corp purchased a new position in DigitalOcean during the fourth quarter valued at $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.