DigitalOcean (NYSE:DOCN) Issues Q4 2025 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its fourth quarter 2025 earnings guidance on Wednesday. The company provided EPS guidance of 0.350-0.400 for the period, compared to the consensus EPS estimate of 0.380. The company issued revenue guidance of $237.0 million-$238.0 million, compared to the consensus revenue estimate of $234.4 million. DigitalOcean also updated its FY 2025 guidance to 2.000-2.050 EPS.

DigitalOcean Stock Up 5.1%

DigitalOcean stock traded up $2.40 during trading hours on Friday, reaching $49.48. 3,527,091 shares of the company’s stock were exchanged, compared to its average volume of 2,038,030. The firm has a market capitalization of $4.50 billion, a PE ratio of 19.95, a PEG ratio of 2.60 and a beta of 1.78. The firm’s 50 day simple moving average is $37.69 and its 200 day simple moving average is $32.35. DigitalOcean has a twelve month low of $25.45 and a twelve month high of $49.62.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings results on Wednesday, November 5th. The company reported $0.54 EPS for the quarter, beating analysts’ consensus estimates of $0.31 by $0.23. DigitalOcean had a net margin of 29.15% and a negative return on equity of 92.51%. The business had revenue of $229.63 million during the quarter, compared to analyst estimates of $226.55 million. During the same quarter in the previous year, the business posted $0.52 EPS. DigitalOcean’s quarterly revenue was up 15.9% on a year-over-year basis. DigitalOcean has set its Q4 2025 guidance at 0.350-0.400 EPS. FY 2025 guidance at 2.000-2.050 EPS. Analysts anticipate that DigitalOcean will post 1.01 EPS for the current year.

Analyst Ratings Changes

A number of equities analysts have recently commented on DOCN shares. Weiss Ratings restated a “hold (c)” rating on shares of DigitalOcean in a research report on Wednesday, October 8th. Morgan Stanley raised their price target on DigitalOcean from $41.00 to $44.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 6th. Bank of America raised DigitalOcean from an “underperform” rating to a “buy” rating and raised their price target for the stock from $34.00 to $60.00 in a research note on Thursday. Canaccord Genuity Group lifted their price target on DigitalOcean from $55.00 to $60.00 and gave the company a “buy” rating in a research report on Thursday. Finally, Wall Street Zen upgraded DigitalOcean from a “hold” rating to a “buy” rating in a research note on Saturday, November 1st. Seven analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, DigitalOcean presently has a consensus rating of “Moderate Buy” and a consensus target price of $47.73.

Insider Activity at DigitalOcean

In related news, insider Bratin Saha sold 13,010 shares of DigitalOcean stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $31.87, for a total value of $414,628.70. Following the completion of the sale, the insider directly owned 269,465 shares in the company, valued at $8,587,849.55. This trade represents a 4.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.96% of the stock is owned by company insiders.

Hedge Funds Weigh In On DigitalOcean

Several hedge funds and other institutional investors have recently made changes to their positions in DOCN. State of Wyoming grew its position in DigitalOcean by 49.6% in the second quarter. State of Wyoming now owns 6,750 shares of the company’s stock valued at $193,000 after acquiring an additional 2,239 shares during the last quarter. Tower Research Capital LLC TRC lifted its stake in DigitalOcean by 170.3% in the 2nd quarter. Tower Research Capital LLC TRC now owns 8,878 shares of the company’s stock valued at $254,000 after purchasing an additional 5,594 shares during the last quarter. Caption Management LLC boosted its position in DigitalOcean by 148.4% in the second quarter. Caption Management LLC now owns 18,463 shares of the company’s stock valued at $527,000 after buying an additional 56,604 shares in the last quarter. Amundi grew its stake in shares of DigitalOcean by 126,552.2% during the second quarter. Amundi now owns 29,130 shares of the company’s stock worth $827,000 after buying an additional 29,107 shares during the last quarter. Finally, Brevan Howard Capital Management LP acquired a new position in DigitalOcean in the 2nd quarter worth about $1,188,000. 49.77% of the stock is owned by institutional investors.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc, through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company’s platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC).