DigitalOcean (NYSE:DOCN) Updates FY 2025 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its FY 2025 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 2.000-2.050 for the period, compared to the consensus estimate of 1.800. The company issued revenue guidance of $896.0 million-$897.0 million, compared to the consensus revenue estimate of $890.4 million. DigitalOcean also updated its Q4 2025 guidance to 0.350-0.400 EPS.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on DOCN. Morgan Stanley increased their price target on shares of DigitalOcean from $41.00 to $44.00 and gave the stock an “overweight” rating in a report on Wednesday, August 6th. Canaccord Genuity Group increased their price target on DigitalOcean from $55.00 to $60.00 and gave the company a “buy” rating in a report on Thursday. Barclays lifted their target price on DigitalOcean from $40.00 to $49.00 and gave the company an “overweight” rating in a research report on Thursday. Stifel Nicolaus set a $36.00 target price on DigitalOcean in a research note on Tuesday, August 5th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of DigitalOcean in a research note on Wednesday, October 8th. Seven analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, DigitalOcean currently has an average rating of “Moderate Buy” and an average price target of $47.73.

DigitalOcean Stock Performance

DOCN traded up $2.40 during trading on Friday, hitting $49.48. The stock had a trading volume of 3,527,091 shares, compared to its average volume of 2,038,030. DigitalOcean has a twelve month low of $25.45 and a twelve month high of $49.62. The firm has a market capitalization of $4.50 billion, a P/E ratio of 19.95, a PEG ratio of 2.60 and a beta of 1.78. The company’s 50-day moving average price is $37.69 and its 200 day moving average price is $32.35.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings results on Wednesday, November 5th. The company reported $0.54 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.31 by $0.23. The company had revenue of $229.63 million during the quarter, compared to the consensus estimate of $226.55 million. DigitalOcean had a net margin of 29.15% and a negative return on equity of 92.51%. The company’s revenue for the quarter was up 15.9% on a year-over-year basis. During the same period last year, the firm earned $0.52 EPS. DigitalOcean has set its Q4 2025 guidance at 0.350-0.400 EPS. FY 2025 guidance at 2.000-2.050 EPS. As a group, equities analysts expect that DigitalOcean will post 1.01 earnings per share for the current fiscal year.

Insider Activity at DigitalOcean

In related news, insider Bratin Saha sold 13,010 shares of the company’s stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $31.87, for a total transaction of $414,628.70. Following the completion of the transaction, the insider owned 269,465 shares of the company’s stock, valued at approximately $8,587,849.55. This represents a 4.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 0.96% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of DOCN. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in DigitalOcean by 5.0% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 339,670 shares of the company’s stock valued at $11,342,000 after purchasing an additional 16,162 shares in the last quarter. Hudson Bay Capital Management LP purchased a new stake in shares of DigitalOcean in the second quarter worth about $1,714,000. Man Group plc boosted its position in shares of DigitalOcean by 0.5% in the second quarter. Man Group plc now owns 82,485 shares of the company’s stock worth $2,356,000 after buying an additional 420 shares during the period. Engineers Gate Manager LP grew its stake in shares of DigitalOcean by 263.3% in the second quarter. Engineers Gate Manager LP now owns 127,592 shares of the company’s stock valued at $3,644,000 after buying an additional 92,470 shares in the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S raised its holdings in shares of DigitalOcean by 7,047.4% during the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 198,841 shares of the company’s stock valued at $5,679,000 after buying an additional 196,059 shares during the period. 49.77% of the stock is owned by institutional investors and hedge funds.

About DigitalOcean

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).