DigitalOcean Holdings, Inc. (DOCN) AI Stock Analysis

DigitalOcean Holdings, Inc. operates a cloud computing platform catering to developers, start-ups, and small to medium-sized businesses across North America, Europe, Asia, and beyond. The platform offers scalable, on-demand infrastructure spanning compute, storage, and networking capabilities, as well as managed offerings for applications, containers, and databases. Its diverse user base includes software engineers, researchers, data scientists, system administrators, students, and hobbyists who use the platform for hosting web and mobile applications, e-commerce, media, gaming, and personal web projects.

DigitalOcean grew revenue from $428.6M in FY2021 to $901.4M in FY2025, delivering a 5-year revenue CAGR of 23.1%. Operating margins improved from -2.6% in FY2021 to 17.4% in FY2025. Over the same timeframe, net income shifted from -$19.5M to $259.3M, resulting in a FY2025 net margin of 28.8% and EPS of $1.97. For the trailing twelve months ended June 30, 2026, revenue stood at $1.01B with an operating margin of 10.4% and net profit margin of 23.3%. In the latest quarter, quarterly revenue grew 28.6% year-over-year, while quarterly earnings declined 24.5%.

As of June 30, 2026, DigitalOcean held $767.0M in cash and short-term investments against total debt of $1.50B, resulting in net debt of $731.7M. The company reported shareholders' equity of $930.7M, a current ratio of 1.31, and a debt-to-equity ratio of 1.61. In FY2025, operating cash flow reached $309.6M while free cash flow was $41.1M. Capital allocation in FY2025 included capital expenditures of $268.5M and share buybacks of $82.1M. Diluted share count expanded by 17.2% over 5 years.

DigitalOcean trades at a trailing P/E of 45.5x and a forward P/E of 76.3x, both above the median of its US-listed Technology peers at 28.1x and 18.8x, respectively. Its price-to-sales of 11.5x and EV to EBITDA of 45.9x also sit at a premium to peer medians of 2.8x and 16.6x. The stock closed at $98.69 on October 16, 2026, reflecting a 1-year return of 129.1%, outperforming the S&P 500 (SPY) 1-year return of 16.8%. Over a 5-year period, DOCN gained 10.8% compared to 83.0% for the S&P 500.

Wall Street coverage includes 11 Strong Buy, 3 Buy, and 3 Hold ratings, with zero Sell or Strong Sell recommendations. The mean price target is $176.20, representing an upside of 78.5% over the last close of $98.69. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $1.18B and EPS of $1.46, representing an EPS drop of 31.2%. Analysts anticipate revenue to reach $1.82B and EPS to rise 26.9% to $1.85 in the next fiscal year. DigitalOcean beat EPS estimates in each of the last 4 quarters, with next earnings scheduled for November 4, 2026.

This page is an AI-written research summary of DigitalOcean Holdings, Inc. (DOCN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: DOCN income statement, DOCN balance sheet, DOCN key metrics, DOCN analyst forecast, DOCN chart. See the DOCN stock overview for the latest quote and news.