DigitalOcean Projects Record Q2 with 29% Revenue Growth, 10X RPO Increase to $800M+, and Raised Profit Guidance
DOCN has more than doubled off its 52-week low of $25.56.
Summary
DigitalOcean reported preliminary Q2 2026 results, projecting record RPO exceeding $800M (up 10X YoY), accelerating revenue growth to 29%, and beating profit guidance, driven by strong AI customer demand and capacity expansion.
Key Events · Earnings and Guidance · DOCN
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Record RPO Growth
Remaining Performance Obligations (RPO) are expected to exceed $800 million, representing more than a 10X increase year-over-year from Q2 2025, with the weighted average life of contracts extending to over 3 years.
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Accelerating Revenue Growth
Q2 2026 revenue growth is projected to accelerate to approximately 29% year-over-year, a significant increase from 14% in Q2 2025 and 22% in Q1 2026.
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Exceeding Profit Guidance
The company expects its Q2 aEBITDA margin and non-GAAP Net Income per Share to be at or above the high end of its previously provided guidance.
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Increased Data Center Capacity
DigitalOcean secured an additional 20 MW of data center capacity for late 2027 and early 2028, bringing total committed capacity to approximately 155 MW to support accelerating customer demand.
Analysis · DOCN · Technology
DigitalOcean announced exceptionally strong preliminary Q2 2026 results, significantly exceeding prior expectations. The projected 10X year-over-year growth in Remaining Performance Obligations (RPO) to over $800 million, coupled with accelerating revenue growth to 29%, indicates robust customer demand, particularly for its AI-Native Cloud offerings. Beating the high end of guidance for aEBITDA margin and non-GAAP Net Income per Share, alongside securing additional data center capacity, signals strong operational performance and future growth potential, potentially offsetting recent negative sentiment from significant insider selling.
At the time of this filing, DOCN was trading at $156.00 on NYSE in the Technology sector, with a market capitalization of approximately $13.7B. The 52-week trading range was $25.56 to $187.50. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.