Company raised 2026 revenue outlook, citing accelerating growth from large and AI customers
Result Drivers
Large customer growth - Revenue acceleration attributed to highest spending customers and AI-focused clients, with $1M+ customer ARR up 214% yr/yr
AI product demand - AI customer ARR grew 212% yr/yr to $234 mln, with 85% now from inference and core cloud, driven by increased token consumption in new Inference Engine
Longer-term contracts - Signed first nine-figure annual customer commitments, extending weighted average contract life from 1.6 years to over 3 years
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for DigitalOcean Holdings Inc is $175.00, about 37.6% above its August 3 closing price of $127.17
The stock recently traded at 82 times the next 12-month earnings vs. a P/E of 77 three months ago
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