DigitalOcean (NYSE:DOCN) Updates FY 2026 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its FY 2026 earnings guidance on Tuesday. The company provided EPS guidance of 0.750-1.000 for the period, compared to the consensus EPS estimate of 1.680. The company issued revenue guidance of $1.1 billion-$1.1 billion, compared to the consensus revenue estimate of $1.1 billion. DigitalOcean also updated its Q1 2026 guidance to 0.220-0.270 EPS.

DigitalOcean Trading Down 7.5%

NYSE DOCN opened at $58.86 on Tuesday. The firm has a market capitalization of $5.38 billion, a PE ratio of 23.73, a price-to-earnings-growth ratio of 8.94 and a beta of 1.76. The business’s 50-day moving average price is $55.41 and its two-hundred day moving average price is $44.92. DigitalOcean has a 12 month low of $25.45 and a 12 month high of $70.43.

Analyst Ratings Changes

Several brokerages have recently weighed in on DOCN. Citigroup reiterated a “buy” rating on shares of DigitalOcean in a report on Friday, February 13th. Piper Sandler lifted 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. Oppenheimer started coverage on DigitalOcean in a report on Monday, November 10th. They issued an “outperform” rating and a $60.00 target price for the company. Barclays lifted their price target on DigitalOcean from $49.00 to $63.00 and gave the stock an “overweight” rating in a report on Monday, January 12th. Finally, UBS Group boosted their price objective 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 issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $53.92.

Hedge Funds Weigh In On DigitalOcean

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Allworth Financial LP increased its position in shares of DigitalOcean by 54.4% in the third quarter. Allworth Financial LP now owns 724 shares of the company’s stock valued at $25,000 after acquiring an additional 255 shares during the period. Wilmington Savings Fund Society FSB bought a new position in shares of DigitalOcean in the 3rd quarter worth approximately $37,000. Transamerica Financial Advisors LLC lifted its position in DigitalOcean by 417.9% during the fourth quarter. Transamerica Financial Advisors LLC now owns 782 shares of the company’s stock valued at $38,000 after buying an additional 631 shares during the period. UMB Bank n.a. lifted its position in DigitalOcean by 242.1% during the 4th quarter. UMB Bank n.a. now owns 821 shares of the company’s stock valued at $40,000 after acquiring an additional 581 shares during the period. Finally, Advisory Services Network LLC purchased a new position in shares of DigitalOcean during the third quarter valued at approximately $54,000. 49.77% of the stock is currently owned by institutional investors.

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.