DigitalOcean Holdings, Inc. · DOCN · FY2026 Q1 · Calendar Q2 2026

DigitalOcean raises 2026 growth outlook as AI demand accelerates

The call supports a demand-led growth thesis for DigitalOcean: AI-native customer adoption and new AI cloud products accompanied stronger revenue and a higher outlook. Whether that growth translates into durable returns depends on capacity utilization, pricing, and margins as investment rises.

Reported Before market openNYSETechnology $10.64B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $0.44 Consensus $0.27
EPS surprise +65.5% Reported versus consensus
Reported revenue $257.9M Consensus $249.8M
Revenue surprise +3.3% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move +40.4% Event window
SPY move +0.8% Same window
Abnormal move +39.6% Stock minus SPY
Volume 3.1× Versus trailing sessions
Subsequent drift +13.7% Up to 20 sessions
DOCNSPY benchmark

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Transcript intelligence

What changed

Management raised its 2026 revenue-growth outlook to approximately 26%, from 21% in the prior-quarter analysis, and projected growth above 50% for 2027. The company also reported Q1 revenue of $258 million, up 22% year over year, and described its AI-native cloud launch and additional capacity commitments.

Guidance delta

Raised 2026 revenue-growth guidance to approximately 26%; the prior-quarter analysis cited 21%. Management projected 2027 revenue growth above 50%.

Key takeaways

  • Q1 revenue was $258 million, up 22% year over year, and beat company guidance, according to the supplied analysis.
  • Management linked demand to AI-native customers, inference workloads, and the AI-native cloud launch with more than 15 integrated product launches.
  • The company raised its 2026 revenue-growth outlook to approximately 26% and projected growth above 50% in 2027.
  • An $888 million equity raise supports capacity expansion; the analysis reports 135 MW of total committed capacity.

Management priorities

  • Roll out the AI-native cloud across data centers and continue launching AI-focused products.
  • Build out the additional 60 MW of capacity committed for 2027.
  • Use the Cataneo acquisition to develop AI middleware while maintaining disciplined capital allocation.

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Earnings History

Estimate Beat Miss Match
DOCN EPS earnings history estimate and actual scatter chart 10 reported fiscal quarters and 4 future estimate-only quarters. Q2 '24 estimate $0.39 Q2 '24 actual $0.48, beat Q3 '24 estimate $0.40 Q3 '24 actual $0.52, beat Q2 '25 estimate $0.47 Q2 '25 actual $0.59, beat Q3 '25 estimate $0.31 Q3 '25 actual $0.33, beat Q4 '25 estimate $0.38 Q4 '25 actual $0.44, beat Q1 '26 estimate $0.27 Q1 '26 actual $0.44, beat Q2 '26 estimate $0.26 Q2 '26 actual $0.45, beat Q3 '26 estimate $0.32 Q3 '26 actual $0.45, beat Q4 '26 estimate $0.27 Q1 '27 estimate $0.34 Q2 '27 estimate $0.42 Q3 '27 estimate $0.49
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Analyst Consensus ?

ConsensusBuy18 ratings
Bullish1477.8%
Neutral422.2%
Bearish00.0%

1 unmapped firm rating excluded from the percentages.

Analyst 52W Price Targets

$90.5Previous close
$36Low
$122.04Average
$220High

Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Nov 4, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
UBS Neutral NeutralMaintainOct 26, 2026
Piper Sandler Overweight NeutralUpgradeOct 21, 2026
Oppenheimer Outperform OutperformMaintainOct 14, 2026
Citigroup Buy BuyMaintainAug 5, 2026
Barclays Overweight OverweightMaintainAug 5, 2026
Stifel Buy HoldUpgradeJul 22, 2026
Canaccord Genuity Buy BuyMaintainJul 10, 2026
Goldman Sachs Buy BuyMaintainMay 7, 2026
Morgan Stanley Overweight OverweightMaintainMay 6, 2026
B of A Securities Buy BuyMaintainApr 9, 2026
Citizens Market Outperform Market OutperformMaintainMar 26, 2026
Cantor Fitzgerald Overweight OverweightMaintainFeb 25, 2026
Needham Hold HoldMaintainMay 6, 2025
JP Morgan Neutral NeutralMaintainFeb 26, 2025
Citizens Capital Markets Market Outperform Market OutperformMaintainFeb 26, 2025
JMP Securities Market Outperform Market OutperformMaintainJan 27, 2025
Credit Suisse Neutral NeutralMaintainAug 4, 2023
Keybanc Sector Weight OverweightDowngradeOct 28, 2022
William Blair Outperform OutperformMaintainNov 12, 2021
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Named analyst price targets

Upside is calculated against the persisted previous close $90.5. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Stifel NicolausAnalyst unavailable$130$90.5 +43.6%Nov 3, 2026
UBSRadi Sultan$105$93.22 +16.0%Oct 26, 2026
Piper SandlerJames Fish$126$99.48 +39.2%Oct 21, 2026
OppenheimerAnalyst unavailable$220$128.21 +143.1%Oct 14, 2026
Truist FinancialMiller Jump$175$114.99 +93.4%Aug 27, 2026
UBSAnalyst unavailable$140$122.3 +54.7%Aug 5, 2026
BarclaysAnalyst unavailable$161$128.89 +77.9%Aug 5, 2026
Stifel NicolausBrad Reback$160$136.45 +76.8%Jul 21, 2026
Robert W. BairdRob Oliver$165$136.45 +82.3%Jul 21, 2026
BarclaysAnalyst unavailable$160$119.09 +76.8%Jul 21, 2026
UBSRadi Sultan$155$135.6 +71.3%Jul 8, 2026
BarclaysAnalyst unavailable$184$137.12 +103.3%Jul 7, 2026
KeyBancAnalyst unavailable$200$173.2 +121.0%Jun 2, 2026
UBSAnalyst unavailable$175$157.71 +93.4%May 12, 2026
Goldman SachsAnalyst unavailable$179$161.01 +97.8%May 6, 2026
Morgan StanleyJosh Baer$175$151.49 +93.4%May 6, 2026
OppenheimerAnalyst unavailable$190$152.25 +109.9%May 6, 2026
Canaccord GenuityAnalyst unavailable$200$152.25 +121.0%May 6, 2026
BarclaysRaimo Lenschow$183$152.25 +102.2%May 6, 2026
Piper SandlerJames Fish$155$152.69 +71.3%May 5, 2026
OppenheimerAnalyst unavailable$115$98.99 +27.1%Apr 28, 2026
UBSAnalyst unavailable$97$93.98 +7.2%Apr 21, 2026
BarclaysAnalyst unavailable$105$88.35 +16.0%Apr 20, 2026
Stifel NicolausAnalyst unavailable$57$62.71 -37.0%Feb 24, 2026
RBC CapitalAnalyst unavailable$60$62.74 -33.7%Feb 24, 2026
Piper SandlerAnalyst unavailable$67$62.22 -26.0%Feb 24, 2026
Canaccord GenuityAnalyst unavailable$80$68.18 -11.6%Feb 20, 2026
Cantor FitzgeraldThomas Blakey$68$57.27 -24.9%Feb 5, 2026
BarclaysAnalyst unavailable$63$53.2 -30.4%Jan 12, 2026
Piper SandlerJames Fish$50$48.97 -44.8%Jan 5, 2026
Cantor FitzgeraldThomas Blakey$47$47.92 -48.1%Nov 6, 2025
Canaccord GenuityAnalyst unavailable$60$47.92 -33.7%Nov 6, 2025
Canaccord GenuityAnalyst unavailable$55$37.84 -39.2%Oct 9, 2025
Stifel NicolausAnalyst unavailable$36$34.81 -60.2%Aug 5, 2025
Goldman SachsGabriela Borges$41$28.25 -54.7%May 6, 2025
Piper SandlerJames Fish$34$33.2 -62.4%Jul 15, 2024
UBSJeff Hickey$40$38.76 -55.8%May 22, 2024
Canaccord GenuityDavid Hynes$42$35.91 -53.6%May 13, 2024
Goldman SachsGabriela Borges$33$23.85 -63.5%Nov 7, 2023
NeedhamMike Cikos$36$29.74 -60.2%Dec 8, 2022
Morgan StanleyJosh Baer$45$40.39 -50.3%Jul 11, 2022
OppenheimerTimothy Horan$80$41.48 -11.6%May 19, 2022
Goldman SachsGabriela Borges$49$37.8 -45.9%May 15, 2022
KeyBancMichael Turits$54$44.05 -40.3%Apr 28, 2022
Piper SandlerJames Fish$72$56.85 -20.4%Apr 5, 2022
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Company context

Snapshot as of publication

DigitalOcean Holdings, Inc., through its various operating entities, provides a global cloud computing environment with reach across North America, Europe, Asia, and beyond. This adaptable platform delivers on-demand infrastructure and essential developer tools, specifically designed for individual developers, new start-ups, and small to mid-sized businesses. The company offers fundamental infrastructure components such as computing power, storage, and networking capabilities, while also enabling developers to expand their cloud solutions using a range of fully managed offerings for…

Historical context

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-11-04T09:00:42.452000+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-11-04T09:00:42.448335+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-11-04. For educational purposes only; not investment advice.