DigitalOcean (NYSE:DOCN) Issues Q3 2026 Earnings Guidance

DigitalOcean (NYSE:DOCN) issued an update on its third quarter 2026 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 0.280-0.300 for the period, compared to the consensus earnings per share estimate of 0.240. The company issued revenue guidance of $304.0 million-$307.0 million, compared to the consensus revenue estimate of $294.0 million. DigitalOcean also updated its FY 2026 guidance to 1.350-1.400 EPS.

DigitalOcean Stock Performance

Shares of DOCN traded up $5.40 during trading hours on Tuesday, hitting $132.57. The stock had a trading volume of 1,634,190 shares, compared to its average volume of 3,857,166. The firm has a market capitalization of $13.84 billion, a price-to-earnings ratio of 57.80 and a beta of 1.61. The firm has a 50-day moving average price of $146.62 and a 200 day moving average price of $106.94. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.46 and a current ratio of 1.46. DigitalOcean has a fifty-two week low of $28.79 and a fifty-two week high of $187.50.

DigitalOcean (NYSE:DOCN) last issued its earnings results on Tuesday, May 5th. The company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.27 by $0.17. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.The company 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 business earned $0.56 EPS. The firm’s quarterly revenue was up 22.4% on a year-over-year basis. As a group, research analysts anticipate that DigitalOcean will post 0.57 EPS for the current year.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the stock. Morgan Stanley upped their target price on shares of DigitalOcean from $75.00 to $175.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. Citigroup boosted their price target on DigitalOcean from $180.00 to $185.00 and gave the stock a “buy” rating in a research report on Wednesday, July 8th. Weiss Ratings lowered shares of DigitalOcean from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, July 28th. Bank of America raised their price target on shares of DigitalOcean from $103.00 to $107.00 and gave the company a “buy” rating in a report on Thursday, April 9th. Finally, KeyCorp began coverage on DigitalOcean in a research report on Tuesday, June 2nd. They set an “overweight” rating and a $200.00 target price on the stock. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $151.93.

Insider Buying and Selling

In other DigitalOcean news, CFO Matt Steinfort sold 10,000 shares of DigitalOcean stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $170.07, for a total value of $1,700,700.00. Following the transaction, the chief financial officer owned 538,414 shares of the company’s stock, valued at approximately $91,568,068.98. The trade was a 1.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 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 that occurred on Friday, May 15th. The shares were sold at an average price of $156.38, for a total transaction of $678,376.44. Following the completion of the sale, the director owned 24,323 shares in the company, valued at $3,803,630.74. This trade represents a 15.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 39,338 shares of company stock worth $6,191,576 over the last ninety days. Company insiders own 0.96% of the company’s stock.

Institutional Trading of DigitalOcean

Several large investors have recently modified their holdings of the stock. Abel Hall LLC bought a new stake in shares of DigitalOcean during the fourth quarter worth about $206,000. Cibc World Markets Corp acquired a new stake in DigitalOcean during the 4th quarter valued at approximately $218,000. Marex Group plc acquired a new position in shares of DigitalOcean in the 4th quarter worth approximately $209,000. O Shaughnessy Asset Management LLC bought a new stake in shares of DigitalOcean during the 4th quarter valued at about $221,000. Finally, CIBC Bancorp USA Inc. acquired a new position in DigitalOcean in the third quarter valued at approximately $249,000. 49.77% of the stock is owned by institutional investors and hedge funds.

About DigitalOcean

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.