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DigitalOcean Holdings (DOCN)
NYSE:DOCN
Earnings Data
Report Date
May 12, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.26Last Year’s EPS
0.56Same Quarter Last Year
Moderate Buy
Based on 14 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presents a strongly positive outlook driven by accelerating revenue growth, record organic ARR additions, strong customer expansion (notably AI-native and large accounts), robust profitability (42% adjusted EBITDA margin) and healthy cash generation. Management provided upgraded guidance (21% growth target for 2026 midpoint, exit 25%+, and a path to 30% in 2027) and committed incremental capacity (31 MW) to support that growth. Key near-term risks include margin compression and higher reported leverage as new data center and GPU capacity is brought online (timing and supply-chain risks), a $13M ARR legacy product wind-down, and remaining 2026 convertible note actions. On balance, the highlights materially outweigh the lowlights given growth acceleration, strong margins, product traction, and a plan to finance capacity responsibly.Company Guidance
Revenue Growth and Run Rate Milestone
Full-year 2025 revenue reached $901,000,000 with Q4 revenue of $242,000,000, up 18% year-over-year. Company crossed a $1 billion revenue run rate in December 2025.
Record Organic ARR Addition and Trailing ARR Momentum
Delivered a record $51,000,000 incremental organic ARR in Q4 and $150,000,000 on a trailing twelve-month basis, the highest in company history.
Top Customer Acceleration (DNE Cohort)
DNE (digital-native enterprise) ARR reached $640,000,000 (62% of total ARR), growing 30% YoY. Million-dollar customers reached $133,000,000 in ARR, growing 123% YoY. NDR for large cohorts: $100k customers 102% NDR (58% growth), $500k customers 106% NDR (97% growth), $1M customers 115% NDR with churn averaging 0% over the last 12 months.
AI Customer Traction
AI customer ARR was $120,000,000 in Q4, growing 150% YoY and representing 12% of total ARR. 70% of AI customer ARR came from inference services or general-purpose cloud (non-bare metal) rather than bare metal GPU rentals.
Strong Profitability and Cash Generation
Full-year adjusted EBITDA of $375,000,000 with a 42% adjusted EBITDA margin; Q4 adjusted EBITDA margin was 41%. Trailing twelve-month adjusted free cash flow was $168,000,000 (19% of revenue). Gross margin: 59% in Q4 and 60% for full year.
Raised Near-Term and Long-Term Guidance
2026 revenue growth guidance raised to 19%–23% (21% midpoint) with an exit growth target of 25%+ in Q4 2026 and a path to 30% growth in 2027 using existing committed capacity. 2026 guidance projects 36%–38% adjusted EBITDA margins and 18%–20% unlevered adjusted free cash flow margins ($207,000,000 at midpoint).
Committed Capacity to Enable Growth
Committed incremental 31 megawatts of data center capacity coming online in 2026 (smallest 6 MW ramping in Q2, remaining ~25 MW ramping in H2 2026); company guides that existing committed capacity supports the 30% 2027 growth target.
Product and Customer Technical Wins
Notable production wins and performance: Character AI saw 100% throughput increase and ~50% lower cost per token on DigitalOcean's inference cloud (AMD Instinct GPUs) on live traffic; Hippocratic AI selected platform for HIPAA-compliant clinical AI workloads (NVIDIA optimization). OpenClaw adoption: ~30,000 one‑click OpenClaw GPU droplets launched soon after release.
Operational & Talent Investments
Expanded product and engineering capabilities (agent development kit, agent evaluation tools, GPU observability, managed NFS, multi-node GPU support, remote MCP support) and hired Vinay Kumar as Chief Product & Technology Officer (founding OCI member) to accelerate platform buildout.
Balance Sheet Actions and Capital Allocation
Strengthened liquidity with an $800,000,000 bank facility, issued $625,000,000 of 2030 convertible notes, repurchased most 2026 convertibles; repurchased 2.4M shares for $82,000,000 in 2025 (SBC down to 9% of revenue from 12% prior year). Entered 2025 with ~3.2x net leverage.
DOCN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
DOCN Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 24, 2026 | $59.24 | $62.74 | +5.91% |
Nov 05, 2025 | $38.82 | $45.81 | +18.01% |
Aug 05, 2025 | $27.01 | $34.81 | +28.88% |
May 06, 2025 | $32.76 | $28.25 | -13.77% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does DigitalOcean Holdings (DOCN) report earnings?
DigitalOcean Holdings (DOCN) is schdueled to report earning on May 12, 2026, Before Open (Confirmed).
What is DigitalOcean Holdings (DOCN) earnings time?
DigitalOcean Holdings (DOCN) earnings time is at May 12, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is DOCN EPS forecast?
DOCN EPS forecast for the fiscal quarter 2026 (Q1) is 0.26.
