DigitalOcean Reports Strong Q4 Earnings and Upbeat Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy DOCN?
Source: NASDAQ.COM
- Significant Earnings Growth: DigitalOcean's fourth-quarter net income reached $25.66 million, translating to $0.24 per share, a notable increase from $18.27 million and $0.19 per share a year earlier, reflecting the company's strong performance in the cloud computing market.
- Revenue Increase: The company reported an 18% year-over-year revenue growth to $242.39 million in the fourth quarter, indicating sustained business expansion and customer demand, further solidifying its market position.
- Optimistic Guidance: Following the earnings report, DigitalOcean issued upbeat guidance for the current quarter and full year, which is expected to drive further stock price appreciation and bolster investor confidence.
- Stock Price Movement: On Tuesday, DigitalOcean shares rose 7.17% to close at $63.47, with a trading volume of 2.34 million shares, close to its average volume of 2.38 million shares, demonstrating a positive market reaction to its earnings.
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Analyst Views on DOCN
Wall Street analysts forecast DOCN stock price to rise
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 59.240
Low
50.00
Averages
63.60
High
72.00
Current: 59.240
Low
50.00
Averages
63.60
High
72.00
About DOCN
DigitalOcean Holdings, Inc. provides the simplest scalable cloud platform that democratizes cloud and AI for growing tech companies around the world. It provides a cloud computing platform, offering simple, scalable and approachable on-demand infrastructure and platform services for developers at growing technology companies. Its platform simplifies cloud computing, enabling its customers to rapidly accelerate innovation and productivity. The simplicity of its platform allows users to focus on building and scaling their business instead of on managing their infrastructure. It offers mission-critical solutions across Infrastructure-as-a-Service (IaaS), including its Droplet virtual machines, storage and networking offerings; Platform-as-a-Service and Software-as-a-Service, including its Managed Hosting, Managed Database, Managed Kubernetes and Marketplace offerings; and artificial intelligence and machine learning, including its GPU Droplets, Notebooks and GenAI Platform offerings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
DigitalOcean Reports Strong Q4 Earnings and Upbeat Guidance
- Significant Earnings Growth: DigitalOcean's fourth-quarter net income reached $25.66 million, translating to $0.24 per share, a notable increase from $18.27 million and $0.19 per share a year earlier, reflecting the company's strong performance in the cloud computing market.
- Revenue Increase: The company reported an 18% year-over-year revenue growth to $242.39 million in the fourth quarter, indicating sustained business expansion and customer demand, further solidifying its market position.
- Optimistic Guidance: Following the earnings report, DigitalOcean issued upbeat guidance for the current quarter and full year, which is expected to drive further stock price appreciation and bolster investor confidence.
- Stock Price Movement: On Tuesday, DigitalOcean shares rose 7.17% to close at $63.47, with a trading volume of 2.34 million shares, close to its average volume of 2.38 million shares, demonstrating a positive market reaction to its earnings.
See More
DigitalOcean Q4 Earnings Exceed Expectations, Shares Surge
- Strong Earnings Report: DigitalOcean reported Q4 earnings per share of 44 cents, exceeding analyst expectations of 38 cents, with quarterly revenue reaching $242.39 million, an 18% increase from $204.93 million in the same quarter last year, indicating robust market demand and growth potential.
- AI-Driven Growth: CEO Paddy Srinivasan highlighted that the increasing traction of DigitalOcean's Agentic Inference Cloud among AI and cloud-native customers is evident in the strong Q4 performance, suggesting a promising trajectory for future growth.
- Forward Guidance: The company anticipates adjusted earnings per share between 22 and 27 cents for Q1, below the analyst estimate of 45 cents, yet expects sales between $249 million and $250 million, slightly above the $248.08 million forecast, demonstrating some market resilience.
- Stock Price Surge: Following the earnings report, DigitalOcean's stock rose by 7.98% to $63.97, reflecting investor optimism about the company's growth potential and further solidifying its position in the cloud infrastructure market.
See More
DigitalOcean Q4 Results Beat Estimates but EPS Guidance Falls Short
- Performance Exceeds Expectations: DigitalOcean reported a non-GAAP EPS of $0.44 for Q4, a 10% year-over-year decline, yet it surpassed analyst expectations of $0.38, demonstrating resilience in the cloud computing sector.
- Strong Revenue Growth: The company achieved revenue of $242.4 million in Q4, an 18% year-over-year increase that exceeded market expectations of $237.73 million, indicating sustained growth potential in the AI and cloud computing markets.
- Optimistic Future Outlook: DigitalOcean forecasts total revenue between $1.075 billion and $1.105 billion for 2026, surpassing the market estimate of $1.07 billion, reflecting strong confidence in future growth.
- Customer Growth Driving Momentum: The CEO noted that with an expanding customer base and the application of AI technologies, the company expects to achieve 21% growth in 2026 and 30% in 2027, highlighting its strategic advantage in the industry's transformation.
See More
DigitalOcean Reports Strong Q4 Earnings and Guidance
- Net Income Growth: DigitalOcean reported a net income of $25.66 million for Q4, translating to $0.24 per share, up from $18.27 million or $0.19 per share last year, indicating improved profitability.
- Strong Revenue Performance: The company achieved an 18% year-over-year revenue growth, reaching $242.39 million in Q4, demonstrating sustained momentum in the cloud computing market and reinforcing its competitive position.
- Optimistic Future Outlook: DigitalOcean expects Q1 revenue between $249 million and $250 million, with adjusted EPS projected at $0.22 to $0.27, reflecting confidence in its upcoming performance.
- Positive Annual Forecast: The company anticipates full-year revenue in the range of $1.075 billion to $1.105 billion, with adjusted EPS between $0.75 and $1.00, showcasing strategic planning for long-term growth.
See More
DigitalOcean Q4 Earnings Beat Expectations, 2026 Outlook Raised
- Strong Earnings Report: DigitalOcean reported a Q4 non-GAAP EPS of $0.44, beating expectations by $0.06, with revenue of $242.39 million reflecting an 18.3% year-over-year increase, surpassing estimates by $4.66 million, indicating robust market performance.
- Significant Customer Growth: The number of million-dollar customers drove annual recurring revenue (ARR) to $133 million, up 123% year-over-year, while the $100K+ customer segment grew by 26%, representing 28% of total revenue, showcasing a solid expansion of the customer base.
- Strong EBITDA Performance: Adjusted EBITDA reached $99 million, a 16% increase year-over-year, with an EBITDA margin of 41%, demonstrating significant progress in cost control and profitability enhancement.
- Optimistic Future Outlook: The company projects total revenue for 2026 to be between $1.075 billion and $1.105 billion, with an adjusted EBITDA margin of 36% to 38%, reflecting confidence in future growth despite a consensus estimate of $1.07 billion.
See More
Movers of the Day: Hims & Hers, IBM, BWX, Kratos, Vir Biotechnology, Home Depot, and Others
- Stock Market Movement: Stock futures were showing slight increases on Tuesday as investors reacted to market conditions.
- AI Sector Impact: The market was influenced by a significant selloff in the artificial intelligence sector, raising concerns among investors.
See More
DigitalOcean Reports Strong Q4 Earnings and Upbeat Guidance
- Significant Earnings Growth: DigitalOcean's fourth-quarter net income reached $25.66 million, translating to $0.24 per share, a notable increase from $18.27 million and $0.19 per share a year earlier, reflecting the company's strong performance in the cloud computing market.
- Revenue Increase: The company reported an 18% year-over-year revenue growth to $242.39 million in the fourth quarter, indicating sustained business expansion and customer demand, further solidifying its market position.
- Optimistic Guidance: Following the earnings report, DigitalOcean issued upbeat guidance for the current quarter and full year, which is expected to drive further stock price appreciation and bolster investor confidence.
- Stock Price Movement: On Tuesday, DigitalOcean shares rose 7.17% to close at $63.47, with a trading volume of 2.34 million shares, close to its average volume of 2.38 million shares, demonstrating a positive market reaction to its earnings.
See More
DigitalOcean Q4 Earnings Exceed Expectations, Shares Surge
- Strong Earnings Report: DigitalOcean reported Q4 earnings per share of 44 cents, exceeding analyst expectations of 38 cents, with quarterly revenue reaching $242.39 million, an 18% increase from $204.93 million in the same quarter last year, indicating robust market demand and growth potential.
- AI-Driven Growth: CEO Paddy Srinivasan highlighted that the increasing traction of DigitalOcean's Agentic Inference Cloud among AI and cloud-native customers is evident in the strong Q4 performance, suggesting a promising trajectory for future growth.
- Forward Guidance: The company anticipates adjusted earnings per share between 22 and 27 cents for Q1, below the analyst estimate of 45 cents, yet expects sales between $249 million and $250 million, slightly above the $248.08 million forecast, demonstrating some market resilience.
- Stock Price Surge: Following the earnings report, DigitalOcean's stock rose by 7.98% to $63.97, reflecting investor optimism about the company's growth potential and further solidifying its position in the cloud infrastructure market.
See More
DigitalOcean Q4 Results Beat Estimates but EPS Guidance Falls Short
- Performance Exceeds Expectations: DigitalOcean reported a non-GAAP EPS of $0.44 for Q4, a 10% year-over-year decline, yet it surpassed analyst expectations of $0.38, demonstrating resilience in the cloud computing sector.
- Strong Revenue Growth: The company achieved revenue of $242.4 million in Q4, an 18% year-over-year increase that exceeded market expectations of $237.73 million, indicating sustained growth potential in the AI and cloud computing markets.
- Optimistic Future Outlook: DigitalOcean forecasts total revenue between $1.075 billion and $1.105 billion for 2026, surpassing the market estimate of $1.07 billion, reflecting strong confidence in future growth.
- Customer Growth Driving Momentum: The CEO noted that with an expanding customer base and the application of AI technologies, the company expects to achieve 21% growth in 2026 and 30% in 2027, highlighting its strategic advantage in the industry's transformation.
See More
DigitalOcean Reports Strong Q4 Earnings and Guidance
- Net Income Growth: DigitalOcean reported a net income of $25.66 million for Q4, translating to $0.24 per share, up from $18.27 million or $0.19 per share last year, indicating improved profitability.
- Strong Revenue Performance: The company achieved an 18% year-over-year revenue growth, reaching $242.39 million in Q4, demonstrating sustained momentum in the cloud computing market and reinforcing its competitive position.
- Optimistic Future Outlook: DigitalOcean expects Q1 revenue between $249 million and $250 million, with adjusted EPS projected at $0.22 to $0.27, reflecting confidence in its upcoming performance.
- Positive Annual Forecast: The company anticipates full-year revenue in the range of $1.075 billion to $1.105 billion, with adjusted EPS between $0.75 and $1.00, showcasing strategic planning for long-term growth.
See More
DigitalOcean Q4 Earnings Beat Expectations, 2026 Outlook Raised
- Strong Earnings Report: DigitalOcean reported a Q4 non-GAAP EPS of $0.44, beating expectations by $0.06, with revenue of $242.39 million reflecting an 18.3% year-over-year increase, surpassing estimates by $4.66 million, indicating robust market performance.
- Significant Customer Growth: The number of million-dollar customers drove annual recurring revenue (ARR) to $133 million, up 123% year-over-year, while the $100K+ customer segment grew by 26%, representing 28% of total revenue, showcasing a solid expansion of the customer base.
- Strong EBITDA Performance: Adjusted EBITDA reached $99 million, a 16% increase year-over-year, with an EBITDA margin of 41%, demonstrating significant progress in cost control and profitability enhancement.
- Optimistic Future Outlook: The company projects total revenue for 2026 to be between $1.075 billion and $1.105 billion, with an adjusted EBITDA margin of 36% to 38%, reflecting confidence in future growth despite a consensus estimate of $1.07 billion.
See More
Movers of the Day: Hims & Hers, IBM, BWX, Kratos, Vir Biotechnology, Home Depot, and Others
- Stock Market Movement: Stock futures were showing slight increases on Tuesday as investors reacted to market conditions.
- AI Sector Impact: The market was influenced by a significant selloff in the artificial intelligence sector, raising concerns among investors.
See More
