Digitalocean Holdings, Inc. (DOCN)
NYSE:DOCN
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Earnings Data
Report Date
Aug 12, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.25Last Year’s EPS
0.59Same Quarter Last Year
Moderate Buy
Based on 14 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call communicated strong operational and financial momentum: meaningful top-line acceleration (Q1 revenue +22% YoY), explosive AI customer ARR growth (+221% YoY), record organic ARR additions, high profitability (41% adjusted EBITDA margin), a substantial $888M equity raise, and launch of a comprehensive AI native cloud with marquee customer wins and independent benchmarking wins. Management also flagged near-term trade-offs — higher CapEx per MW, ~$100M in 2026 start-up costs for new capacity, and the timing/ramp uncertainty of the incremental 60 MW (no 2026 revenue benefit). Competitive and early-market risks remain, but the positive growth, profitability, balance sheet strengthening, product differentiation and customer validation dominate the discussion.Company Guidance
Strong Top-Line Growth and Raised Guidance
Q1 revenue of $258 million, up 22% year-over-year and above guidance; Q2 guidance of $272–$274 million (24%–25% YoY). Full-year 2026 revenue guidance raised to $1.13–$1.145 billion (25%–27% YoY) with Q4 exit growth approaching ~30%. 2027 revenue now expected to exceed $1.7 billion (50%+ YoY), up from prior 30% guidance.
Rapid AI Customer Expansion
AI customer ARR reached $170 million, growing 221% year-over-year. Inference and core cloud pull-through now represent >80% of AI customer ARR (up from 70% in Q4), indicating deeper platform adoption beyond GPU rental.
Large Customer Cohort Acceleration
$1 million-plus customer ARR reached $183 million, up 179% year-over-year. $500k cohort ARR grew 132% and $100k cohort ARR grew 73%, demonstrating strong expansion from larger customers.
Profitability and Cash Flow Strength
Q1 adjusted EBITDA of $105 million (41% margin), up 21% YoY; GAAP operating income $37 million (14% margin); adjusted operating income $64 million (25% margin). Trailing 12-month adjusted free cash flow of $171 million (18% of revenue). Full-year 2026 guidance: adjusted EBITDA margins 37%–39% and adjusted FCF margins 9%–12% (including start-up costs); 2027 outlook: ~40% adjusted EBITDA margin and high-teens adjusted FCF margin.
Major Capital Raise and Balance Sheet Improvements
Raised $888 million in equity proceeds in Q1. Used proceeds to repay $500 million Term Loan A (saving ~ $50 million/year in cash interest) and plan to retire $312 million 2026 convertible notes. No material maturities until 2030 and expected net leverage of ~3x exiting 2026.
Significant Capacity Expansion Commitment
Secured ~60 megawatts of incremental data center capacity across four locations, bringing total committed capacity to ~135 MW. New capacity projected to ramp revenue throughout 2027. Richmond facility began ramping in March (contributed < $0.5M in Q1).
Launch of DigitalOcean AI Native Cloud and Product Momentum
Launched AI native cloud with 15 product launches across five integrated layers (infrastructure to agents), including a new inference engine, managed agents platform, enterprise managed MySQL, vector DB support and BYOM capabilities. Completed Cataneo acquisition to accelerate AI middleware and inference routing.
Customer Wins and Independent Validation
Onboarded marquee AI-native customers (Cursor, Ideogram, Higgsfield AI) running production inference and multi-model workflows. Independent benchmark (Artificial Analysis) showed #1 output speed for DeepSeek v3.2 and Qwen v3.5 (230 output tokens/sec on DeepSeek v3.2, 3.9x faster than a leading hyperscaler).
Record ARR Additions and Backlog
Delivered a record $62 million incremental organic ARR in the quarter. Remaining performance obligation (RPO) reached $243 million, up ~1,700% year-over-year, indicating strong deferred/contracted demand.
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 |
|---|---|---|---|
May 05, 2026 | $108.81 | $152.77 | +40.40% |
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% |
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, Inc. (DOCN) report earnings?
Digitalocean Holdings, Inc. (DOCN) is schdueled to report earning on Aug 12, 2026, Before Open (Confirmed).
What is Digitalocean Holdings, Inc. (DOCN) earnings time?
Digitalocean Holdings, Inc. (DOCN) earnings time is at Aug 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 (Q2) is 0.25.
