KeyCorp Has Optimistic Outlook of DigitalOcean Q2 Earnings

DigitalOcean Holdings, Inc. (NYSE:DOCN) – Equities researchers at KeyCorp boosted their Q2 2026 earnings estimates for shares of DigitalOcean in a note issued to investors on Tuesday, July 7th. KeyCorp analyst J. Ader now anticipates that the company will post earnings per share of $0.09 for the quarter, up from their previous estimate 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.

Other equities research analysts have also recently issued research reports about the company. Canaccord Genuity Group restated a “buy” rating and set a $200.00 price target on shares of DigitalOcean in a research note on Friday. Citizens Jmp boosted their target price on DigitalOcean from $83.00 to $105.00 and gave the stock a “market outperform” rating in a research report on Thursday, March 26th. Weiss Ratings raised DigitalOcean from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday. UBS Group dropped their price objective on DigitalOcean from $175.00 to $155.00 and set a “neutral” rating on the stock in a report on Wednesday, July 8th. 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 report on Thursday, April 9th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $145.36.

DigitalOcean Stock Down 5.5%

DigitalOcean stock opened at $123.27 on Tuesday. The stock has a 50 day moving average of $156.90 and a two-hundred day moving average of $99.37. DigitalOcean has a twelve month low of $25.56 and a twelve month high of $187.50. The stock has a market capitalization of $12.86 billion, a price-to-earnings ratio of 53.83 and a beta of 1.57. 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 (NYSE:DOCN) last announced its earnings results on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, beating 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 business 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 earnings per share. The business’s revenue was up 22.4% compared to the same quarter last year. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS.

Hedge Funds Weigh In On DigitalOcean

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Allworth Financial LP boosted its holdings in shares of 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. Parallel Advisors LLC increased its holdings in shares of DigitalOcean by 66.2% during the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock worth $28,000 after buying an additional 129 shares during the last quarter. Huntington National Bank raised its position in shares of DigitalOcean by 638.3% in the 4th quarter. Huntington National Bank now owns 598 shares of the company’s stock worth $29,000 after buying an additional 517 shares during the period. NBC Securities Inc. purchased a new position in shares of DigitalOcean in the 4th quarter worth $32,000. Finally, Banque Cantonale Vaudoise purchased a new stake in DigitalOcean during the first quarter valued at about $33,000. Institutional investors and hedge funds own 49.77% of the company’s stock.

Insiders Place Their Bets

In other news, CFO Matt Steinfort sold 10,000 shares of the firm’s stock in a transaction 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 sale, the chief financial officer owned 538,414 shares in the company, valued at $91,568,068.98. This trade represents a 1.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 DigitalOcean stock in a transaction on Friday, May 15th. The shares were sold at an average price of $156.38, for a total value of $678,376.44. Following the completion of the sale, the director directly owned 24,323 shares of the company’s stock, valued at approximately $3,803,630.74. This represents a 15.14% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 39,338 shares of company stock worth $6,191,576. Corporate insiders own 0.96% 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.