DigitalOcean reports Q4 EPS 44c, consensus 38c

Reports Q4 revenue $242.39M, consensus $237.73M. “AI is reshaping entire industries, and we are built for this shift. DigitalOcean’s (DOCN) Agentic Inference Cloud is gaining further traction with large Cloud and AI Native customers that are driving the shift, which is evident in our strong Q4 performance and our increased outlook for 2026 and 2027,” said Paddy Srinivasan, CEO of DigitalOcean. “There is a lot of momentum across the business. We delivered 18% top-line growth in Q4 and reached $1 billion in annualized monthly run-rate revenue in December. We added a record $51 million in organic incremental ARR. Our million+ dollar customer ARR was $133 million, growing 123% year-over-year. We reached $120 million in AI customer ARR, growing 150% year-over-year. We continued to distinguish ourselves from the growing number of bare metal GPU providers, as more than 70% of our AI customer ARR comes from inference services and core cloud products, rather than from bare metal. With this growing momentum, we are raising our growth outlook again after raising it just last quarter. We now expect to deliver 21% growth in 2026, to exit 2026 at 25%+ growth and to reach 30% growth in 2027 – and we expect to do so profitably, as we are on track to being a weighted Rule of 50 company in 2027.”