DigitalOcean (NYSE:DOCN) Posts Quarterly Earnings Results, Beats Expectations By $0.06 EPS

DigitalOcean (NYSE:DOCN) posted its earnings results on Tuesday. The company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.38 by $0.06, Briefing.com reports. DigitalOcean had a negative return on equity of 92.51% and a net margin of 29.15%.The business’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.49 earnings per share. DigitalOcean updated its FY 2026 guidance to 0.750-1.000 EPS and its Q1 2026 guidance to 0.220-0.270 EPS.

DigitalOcean Stock Down 7.5%

NYSE DOCN opened at $58.86 on Tuesday. The business’s 50-day moving average price is $55.41 and its 200 day moving average price is $44.92. DigitalOcean has a 52-week low of $25.45 and a 52-week high of $70.43. The firm has a market cap of $5.38 billion, a P/E ratio of 23.73, a P/E/G ratio of 8.94 and a beta of 1.76.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on DOCN. Piper Sandler raised their price objective on shares of DigitalOcean from $47.00 to $50.00 and gave the stock a “neutral” rating in a report on Monday, January 5th. Cantor Fitzgerald raised shares of DigitalOcean from a “neutral” rating to an “overweight” rating and increased their target price for the company from $47.00 to $68.00 in a research report on Thursday, February 5th. Weiss Ratings reissued a “hold (c+)” rating on shares of DigitalOcean in a research report on Monday, December 29th. Citigroup reaffirmed a “buy” rating on shares of DigitalOcean in a report on Friday, February 13th. Finally, UBS Group lifted their target price on DigitalOcean from $40.00 to $48.00 and gave the stock a “neutral” rating in a research report on Thursday, November 6th. Eight equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $53.92.

Institutional Trading of DigitalOcean

Hedge funds and other institutional investors have recently made changes to their positions in the company. Alyeska Investment Group L.P. acquired a new stake in DigitalOcean in the third quarter valued at about $21,808,000. Arrowstreet Capital Limited Partnership boosted its stake in shares of DigitalOcean by 90.9% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,194,845 shares of the company’s stock valued at $57,496,000 after buying an additional 568,823 shares in the last quarter. Franklin Resources Inc. boosted its stake in shares of DigitalOcean by 784.2% in the fourth quarter. Franklin Resources Inc. now owns 494,314 shares of the company’s stock valued at $23,786,000 after buying an additional 438,411 shares in the last quarter. Danske Bank A S acquired a new position in DigitalOcean during the third quarter worth $14,582,000. Finally, Lazard Asset Management LLC raised its position in DigitalOcean by 34.5% in the second quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company’s stock worth $47,430,000 after acquiring an additional 426,264 shares in the last quarter. 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.