DigitalOcean Holdings (NASDAQ:DOCN) stock surged on Tuesday after the company reported financial results for the fourth quarter.
Key Metrics Surpass Market Expectations
The cloud infrastructure provider reported quarterly earnings per share (EPS) of 44 cents, surpassing analyst expectations of 38 cents. Additionally, the company’s quarterly revenue reached $242.39 million, exceeding forecasts by 1.97% and reflecting strong growth from the comparable quarter’s $204.93 million.
"AI is reshaping entire industries, and we are built for this shift. DigitalOcean's 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.”
DigitalOcean Holdings Issues Forward Guidance
For the first quarter, the company anticipates adjusted earnings per share between 22 cents and 27 cents versus estimates of 45 cents. The company sees sales between $249 million and $250 million versus the $248.08 million analyst estimate.
For the next full fiscal year, DigitalOcean guided for adjusted earnings per share between 75 cents and $1.00 versus estimates of $1.96. The company sees sales between $1.075 billion and $1.105 billion versus estimates of $1.068 billion.
DOCN Shares Rise Tuesday
DOCN Price Action: DigitalOcean Holdings shares were up 7.98% at $63.97 at the time of publication on Tuesday, according to Benzinga Pro data.
Image: Shutterstock
