DOCN Stock Climbs On Strong Preliminary Q2 Numbers – CEO Touts Winning ‘World’s Most Sophisticated AI Customers’

DigitalOcean said it added “multiple nine-figure annual customer commitments” for its inference and cloud products during the second quarter.

• For the second quarter, the company expects revenue growth of 29%, compared with 14% in the same period last year.
• It expects adjusted EBITDA margins and adjusted EPS to either match the top end of the previously provided range or come in higher.
• According to data from Koyfin, the consensus estimate for Q2 revenue is $274 million, and the adjusted EBITDA margin is about 38%.

Shares of DigitalOcean Holdings Inc. (DOCN) surged on Tuesday after the company reported strong preliminary expectations for its fiscal second quarter, as artificial intelligence-related demand continued to benefit its business.

At the time of writing, DOCN stock was up 6% and among trending tickers on Stocktwits.

DOCN’s Preliminary Q2 Numbers

For the second quarter (Q2), the company expects revenue growth of 29%, compared with 14% in the same period last year. It now sees adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins and adjusted earnings per share (EPS) to either match the top end of the previously provided range or come in higher. 

The firm also expects positive customer momentum to lead to higher revenue growth in 2026.

DigitalOcean had guided Q2 total revenue to be between $272 million and $274 million. It guided an adjusted EBITDA margin of 37% to 38% and adjusted EPS of $0.20 to $0.23. According to Koyfin data, the Q2 consensus estimates are $274 million in revenue, about 38% adjusted EBITDA margin, and $0.25 in adjusted EPS.

DOCN Adds Multiple Nine-Figure Annual Customer Commitments

The company claimed it added “multiple nine-figure annual customer commitments” for its inference and cloud products during the quarter. It roped in new customers for 20 megawatts (MW) of additional data center capacity, expected to come online in late 2027 and early 2028, bringing its total committed data center capacity to about 155 MW.

DigitalOcean anticipates its remaining performance obligations will grow more than tenfold from last year to over $800 million, with the weighted average life rising to over 3 years from 1.6 years.

“We continue to win the world’s most sophisticated AI customers, and demand continues to accelerate,” said Paddy Srinivasan, CEO of DigitalOcean. “Customers recognize the differentiation of our AI-Native Cloud platform, appreciate how easy we make it to scale their businesses, and seek the total cost of ownership advantage that we provide them.”

What Retail Thinks About DOCN

On Stocktwits, retail sentiment toward DOCN stock turned ‘neutral’ from ‘bearish’ over the last 24 hours.

One user on the platform said the bigger takeaway from the company’s announcement is that AI infrastructure demand is showing up in real contracts.

View this Stocktwits post

Another user said that a larger RPO backlog increases confidence that future revenue estimates can rise and that demand for AI infrastructure is converting into contracted customer spend.

View this Stocktwits post

DOCN stock has nearly tripled in value so far this year and has risen nearly fivefold over the past 12 months, outperforming the S&P 500.

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