DigitalOcean Holdings, Inc. (NYSE:DOCN) reported better-than-expected first-quarter financial results and raised its fiscal-year 2026 guidance above estimates.
DigitalOcean reported adjusted earnings per share of 44 cents, beating the consensus estimate of 27 cents. In addition, it reported revenue of $257.90 million, beating the consensus estimate of $249.74 million.
DigitalOcean raised its fiscal-year 2026 adjusted earnings per share guidance from between 75 cents and $1.00 to between $1.10 and $1.20, versus the consensus estimate of $1.02. Furthermore, it raised its fiscal-year 2026 revenue guidance from between $1.07 billion and $1.10 billion to between $1.13 billion and $1.14 billion, versus the consensus estimate of $1.09 billion.
The company anticipates second-quarter adjusted earnings per share between 20 cents and 23 cents, versus the consensus estimate of 24 cents. It sees revenue of between $272 million and $274 million, versus the consensus estimate of $260.75 million.
DigitalOcean shares rose 3.3% to trade at $157.73 on Wednesday.
These analysts made changes to their price targets on DigitalOcean following earnings announcement.
- Barclays analyst Raimo Lenschow maintained the stock with an Overweight rating and raised the price target from $105 to $183.
- Piper Sandler analyst James Fish maintained DigitalOcean with a Neutral and raised the price target from $98 to $155.
- Morgan Stanley analyst Josh Baer maintained the stock with an Overweight rating and raised the price target from $75 to $175.
Considering buying DOCN stock? Here’s what analysts think:
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