DigitalOcean Plunges 8.45% After Record High; Forecasts $1.075B–$1.105B 2026 Revenue
DigitalOcean shares fell 8.45% after hitting a four-year high following a 27% February surge and profit-taking by investors. The company reported 2025 net income of $259 million on $901 million revenue, saw Q4 earnings jump 40.4% to $25.66 million, and guided 2026 revenue to $1.075–$1.105 billion.
1. Profit-Taking Triggers Sharp Pullback
Shares of DigitalOcean dropped 8.45% after closing at a four-year high of $70.43 last week, as investors sold positions to lock in gains following a 27% rally in February.
2. Strong 2025 Earnings Performance
For full-year 2025, net income attributable to shareholders tripled to $259 million from $84 million, while revenues climbed 15.5% to $901 million. In Q4 alone, net profit rose 40.4% to $25.66 million and revenues jumped 18% to $242.39 million year-on-year.
3. Bullish 2026 Guidance and Analyst Upgrade
Management projects 2026 revenues of $1.075 billion to $1.105 billion, implying 19–22.6% growth. Following these results, Morgan Stanley raised its price target by 34% to $75 and maintained an overweight rating, citing successful strategic initiatives driving growth.