DigitalOcean (NYSE:DOCN) Updates Q4 2025 Earnings Guidance

DigitalOcean (NYSE:DOCN) issued an update on its fourth quarter 2025 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 0.350-0.400 for the period, compared to the consensus earnings per share estimate of 0.380. The company issued revenue guidance of $237.0 million-$238.0 million, compared to the consensus revenue estimate of $234.4 million. DigitalOcean also updated its FY 2025 guidance to 2.000-2.050 EPS.

DigitalOcean Stock Down 5.6%

Shares of DOCN stock opened at $39.11 on Wednesday. The firm has a market cap of $3.56 billion, a price-to-earnings ratio of 30.08, a PEG ratio of 2.35 and a beta of 1.78. DigitalOcean has a 12 month low of $25.45 and a 12 month high of $47.02. The stock has a 50-day moving average price of $37.15 and a 200 day moving average price of $32.16.

DigitalOcean (NYSE:DOCN) last posted its earnings results on Tuesday, August 5th. The company reported $0.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.47 by $0.12. The company had revenue of $218.70 million during the quarter, compared to analyst estimates of $216.62 million. DigitalOcean had a negative return on equity of 73.19% and a net margin of 15.18%.The company’s revenue for the quarter was up 13.6% compared to the same quarter last year. During the same period in the previous year, the company earned $0.48 EPS. Sell-side analysts predict that DigitalOcean will post 1.01 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the company. Canaccord Genuity Group boosted their target price on DigitalOcean from $49.00 to $55.00 and gave the stock a “buy” rating in a research report on Thursday, October 9th. Morgan Stanley lifted their price target on shares of DigitalOcean from $41.00 to $44.00 and gave the company an “overweight” rating in a research note on Wednesday, August 6th. Barclays increased their price objective on shares of DigitalOcean from $38.00 to $40.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 6th. UBS Group initiated coverage on shares of DigitalOcean in a report on Tuesday, October 7th. They set a “neutral” rating and a $40.00 price objective on the stock. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of DigitalOcean in a research note on Wednesday, October 8th. Six analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, DigitalOcean presently has a consensus rating of “Hold” and a consensus target price of $42.73.

Insider Activity

In other news, insider Bratin Saha sold 13,010 shares of the company’s stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $31.87, for a total transaction of $414,628.70. Following the sale, the insider owned 269,465 shares in the company, valued at $8,587,849.55. This represents a 4.61% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. 0.74% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On DigitalOcean

Institutional investors and hedge funds have recently made changes to their positions in the stock. State of Wyoming raised its stake in shares of DigitalOcean by 49.6% during the 2nd quarter. State of Wyoming now owns 6,750 shares of the company’s stock worth $193,000 after purchasing an additional 2,239 shares in the last quarter. Tower Research Capital LLC TRC increased its position in DigitalOcean by 170.3% during the second quarter. Tower Research Capital LLC TRC now owns 8,878 shares of the company’s stock worth $254,000 after buying an additional 5,594 shares during the last quarter. Caption Management LLC increased its position in DigitalOcean by 148.4% during the second quarter. Caption Management LLC now owns 18,463 shares of the company’s stock worth $527,000 after buying an additional 56,604 shares during the last quarter. Amundi increased its position in DigitalOcean by 126,552.2% during the second quarter. Amundi now owns 29,130 shares of the company’s stock worth $827,000 after buying an additional 29,107 shares during the last quarter. Finally, Brevan Howard Capital Management LP bought a new stake in DigitalOcean in the 2nd quarter valued at $1,188,000. Institutional investors own 49.77% of the company’s stock.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc, through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company’s platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC).