DigitalOcean forecast beats Wall Street estimates on AI boom strength
DOCN•Debt repurchase and 2027 outlook
DigitalOcean also repurchased $472 million in debt during the quarter. In an interview with Reuters, DigitalOcean CEO Paddy Srinivasan said the company projects 50% year-on-year revenue growth in 2027 while remaining cash-flow positive.
"Many of our competitors are levering the hell up, and maybe there is a touch of madness to it," Srinivasan said. "But we are zagging when everyone else is zigging."
Forecast raised above Wall Street estimates
DigitalOcean Holdings shares closed higher on Tuesday after the company lifted its full-year 2026 sales and profit forecast above Wall Street estimates, as AI software companies increasingly use its cloud computing services.
DigitalOcean said it expects sales between $1.17 billion and $1.18 billion for 2026, above analyst estimates of $1.16 billion, according to LSEG data. The Broomfield, Colorado-based company expects full-year adjusted profits of between $1.35 and $1.40 per share, above LSEG average estimates of $1.25 per share.
Second-quarter results also topped estimates
DigitalOcean, a so-called "neocloud" that sells cloud infrastructure specifically to software companies building AI products, also reported second-quarter sales and adjusted profits of $281 million and per share, both above estimates of and per share, according to LSEG data.
