DigitalOcean tops estimates with $281M in quarterly revenue, up 29%
What's the deal? DigitalOcean reported $281.18 million in second-quarter revenue, up 28.6% year-on-year and ahead of the $279.03 million analysts expected. Earnings came in at $0.45 per share, well above the $0.26 consensus.
What does the company do? The New York-listed cloud infrastructure provider (NYSE: DOCN) targets developers and small businesses. It posted a return on equity of 31.01% and a net margin of 23.26% for the quarter.
Why now? The results, announced August 4, prompted fresh institutional interest. Sanctuary Advisors LLCDealroom has a profile for this one. Try Dealroom → bought a new stake of 8,143 shares worth roughly $1,279,000, according to its latest Form 13F filing with the Securities and Exchange Commission.
Other funds also moved in. Allworth FinancialDealroom has a profile for this one. Try Dealroom →, Parallel AdvisorsDealroom has a profile for this one. Try Dealroom →, Huntington National BankDealroom has a profile for this one. Try Dealroom →, and NBC SecuritiesDealroom has a profile for this one. Try Dealroom → all added or opened positions, though most stakes remain small. Institutional investors now hold 49.77% of the stock.
What's the outlook? DigitalOcean guided FY 2026 earnings to between $1.350 and $1.400 per share and third-quarter earnings to $0.280–$0.300. Analysts expect $0.63 per share for the current fiscal year.
Wall Street sentiment has turned positive. Two analysts rate the stock a strong buy, 13 a buy, and two a hold, for an average "buy" rating and a consensus price target of $152.81. DOCN opened at $121.76 on Friday, giving it a market capitalisation of $12.71 billion, against a 12-month range of $30.89 to $187.50.
The signal: DigitalOcean's beat and raised institutional interest point to steady demand for developer-focused cloud services, even as its P/E of 55.60 leaves little room for disappointment.
Read more: tickerreport.com
Image credit: Douglas Tofoli
