DigitalOcean Holdings, Inc. · DOCN · FY2026 Q2 · Calendar Q3 2026

DigitalOcean raises FY2026 outlook as AI inference adoption accelerates

The quarter supports the view that AI demand and customer adoption can sustain DigitalOcean’s growth trajectory: management described rapid inference uptake, stronger contribution from larger customer cohorts and a raised full-year outlook. The case remains execution-dependent, particularly around capacity delivery, pricing and the economics of serving AI workloads.

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

Earnings scorecard

Reported versus consensus
Reported EPS $0.45 Consensus $0.26
EPS surprise +72.9% Reported versus consensus
Reported revenue $281.2M Consensus $279.0M
Revenue surprise +0.8% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move +1.4% Event window
SPY move +1.8% Same window
Abnormal move -0.5% Stock minus SPY
Volume 1.9× Versus trailing sessions
Subsequent drift -15.5% Up to 20 sessions
DOCNSPY benchmark

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What changed

Management raised its full-year 2026 revenue-growth outlook to about 30%, from the prior quarter’s roughly 26% outlook, while maintaining its bullish 2027 growth view. The update also emphasized rapid inference adoption and continued capacity expansion; those plans increase the importance of delivering new infrastructure and converting demand into durable, profitable revenue.

Guidance delta

Raised the 2026 revenue-growth outlook to about 30%; management continued to express a 50%+ growth outlook for 2027. The supplied prior-quarter analysis had described approximately 26% growth for 2026 and a 50%+ 2027 target.

Key takeaways

  • Management reported 29% year-over-year revenue growth and record incremental ARR, alongside a 40% adjusted EBITDA margin.
  • Inference services and open-weight model workloads were prominent demand drivers in management’s account; the company described rapid customer adoption after launch.
  • The stronger 2026 outlook and continued 2027 growth ambition are paired with a substantial infrastructure rollout, leaving execution and unit economics central to the thesis.

Management priorities

  • Expand data-center capacity and continue the infrastructure rollout through 2027.
  • Develop the AI Native Cloud, inference engine, model catalog and related platform features.
  • Broaden go-to-market execution while focusing on larger, higher-spending customer cohorts.

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Earnings History

Estimate Beat Miss Match
DOCN REVENUE earnings history estimate and actual scatter chart 10 reported fiscal quarters and 4 future estimate-only quarters. Q2 '24 estimate $189M Q2 '24 actual $192M, beat Q3 '24 estimate $200M Q3 '24 actual $198M, miss Q2 '25 estimate $226M Q2 '25 actual $219M, miss Q3 '25 estimate $238M Q3 '25 actual $230M, miss Q4 '25 estimate $238M Q4 '25 actual $242M, beat Q1 '26 estimate $250M Q1 '26 actual $258M, beat Q2 '26 estimate $279M Q2 '26 actual $281M, beat Q3 '26 estimate $307M Q3 '26 actual $321M, beat Q4 '26 estimate $333M Q1 '27 estimate $369M Q2 '27 estimate $423M Q3 '27 estimate $479M
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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

$90.5Current
$36Low
$122.04Average
$220High

Latest persisted target per named analyst; persisted current price 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
Show 14 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $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
See 40 more

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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 · 2026-08-04T18:08:14.785455+00:00
  2. FN2 earnings calendar · 2026-09-09T01:23:14.388487+00:00
  3. Polygon adjusted daily market bars · 2026-11-04T03:00:48.975968+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-11-04T03:00:48.973055+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.