DigitalOcean Q2 EPS Smashes Estimates, Raises 2026 Revenue Outlook
DOCN has more than doubled off its 52-week low of $25.56.
Summary
DigitalOcean delivered a massive Q2 beat with adjusted EPS of $0.45, nearly double the $0.26 consensus, on revenue of $281M (up 29% YoY). The company raised its full-year 2026 revenue guidance to $1.17-$1.18B, implying 30-31% growth, and guided Q3 revenue to $304-$307M, well above expectations. AI customer ARR surged 212% to $234M, now 85% inference-driven, and the company signed its first nine-figure annual commitments, extending contract life to over three years. This follows the July 7 preliminary Q2 beat announcement and the recent $1.47B equity offering used to repurchase convertible notes. The results confirm accelerating momentum from large and AI customers, with management now targeting over 50% revenue growth in 2027. The stock, already up sharply this year, is likely to see further re-rating as the AI narrative solidifies.
At the time of this announcement, DOCN was trading at $120.00 on NYSE in the Technology sector, with a market capitalization of approximately $14.9B. The 52-week trading range was $25.56 to $187.50. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.