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DigitalOcean Holdings ( (DOCN) ) has issued an update.
DigitalOcean reported first-quarter 2026 results on May 5, posting revenue of $258 million, up 22% year over year, and annual run-rate revenue of $1.03 billion, while AI customer ARR surged 221% to $170 million and million-dollar customer ARR jumped 179% to $183 million. Despite lower GAAP net income, profitability on an adjusted basis remained strong, and the company completed a major equity offering used in part to repay $500 million of term debt, bolstering its balance sheet.
Operationally, the company launched its AI-Native Cloud in April at its Deploy 2026 event, calling it its most significant product rollout and adding more than 15 products across infrastructure, core cloud, inference, data and managed agents. DigitalOcean also acquired Katanemo Labs to deepen its agentic AI capabilities, expanded committed data center capacity by about 60 MW for 2027, and raised its 2026 and 2027 revenue growth outlooks, underscoring its bid to secure a stronger position in the fast-growing AI cloud market.
The most recent analyst rating on (DOCN) stock is a Buy with a $120.00 price target. To see the full list of analyst forecasts on DigitalOcean Holdings stock, see the DOCN Stock Forecast page.
Spark’s Take on DOCN Stock
According to Spark, TipRanks’ AI Analyst, DOCN is a Neutral.
The score is driven primarily by improved profitability but constrained by balance-sheet risk (negative equity) and weaker recent free-cash-flow conversion. Technicals are strong but stretched, valuation is high (P/E ~42.9), while the latest earnings call provides a meaningful offset with upgraded growth and cash-flow guidance backed by accelerating ARR and capacity expansion.
To see Spark’s full report on DOCN stock, click here.
More about DigitalOcean Holdings
DigitalOcean Holdings, Inc. operates an AI-native cloud platform purpose-built for inference and agentic workloads, integrating infrastructure, core cloud services, inference, data and managed agents in a single stack. The New York Stock Exchange-listed company serves more than 650,000 users across 20 data centers in five global regions, targeting developers and businesses building and scaling AI and agentic applications.
Average Trading Volume: 4,338,423
Technical Sentiment Signal: Buy
Current Market Cap: $11.14B
For an in-depth examination of DOCN stock, go to TipRanks’ Overview page.