DigitalOcean's AI Revenue Doubles, Net Income Reaches $233.6 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2026
0mins
Source: NASDAQ.COM
- Accelerating Revenue Growth: DigitalOcean reported total revenue of $659 million for the first three quarters of 2025, reflecting a 14.5% year-over-year increase, driven by strong AI business growth, with expectations for AI revenue to double again in Q4, solidifying its market position.
- Significant Net Income Increase: The company's net income reached $233.6 million in the first three quarters of 2025, a remarkable 252% increase year-over-year, attributed to effective cost management and accelerating revenue growth, showcasing a substantial improvement in profitability.
- Outstanding AI Business Performance: DigitalOcean's AI revenue has doubled over the past five consecutive quarters, driving overall performance and indicating success in providing affordable AI solutions for small and midsized businesses, further enhancing its competitive edge in the market.
- Attractive Valuation: Despite a rapid stock price increase over the past 12 months, the current price-to-sales ratio stands at 6.4, below the average of 8.1 since going public, indicating that DigitalOcean's stock still holds investment value, attracting positive ratings from Wall Street.
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Analyst Views on DOCN
Wall Street analysts forecast DOCN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DOCN is 55.90 USD with a low forecast of 47.00 USD and a high forecast of 65.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
8 Buy
4 Hold
0 Sell
Moderate Buy
Current: 60.240
Low
47.00
Averages
55.90
High
65.00
Current: 60.240
Low
47.00
Averages
55.90
High
65.00
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.
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