DigitalOcean Q3 revenue jumps 40%, beats estimates; raises outlook
DOCN•DigitalOcean’s Q3 revenue rose 40% year over year to $321.19 million, beating the $306.65 million consensus estimate. It forecast Q4 2026 revenue growth of 44% to 45% and raised its 2027 revenue growth outlook to above 60%.
1. Revenue beats estimates
DigitalOcean reported Q3 revenue of $321.19 million, up 40% year over year and above the $306.65 million analyst consensus. Net loss was $42.61 million, including a $57 million induced conversion expense related to a repurchase of convertible notes.
2. Outlook raised
The company expects Q4 2026 revenue of $348 million to $351 million, representing year-over-year growth of 44% to 45%, and non-GAAP diluted earnings per share of $0.30 to $0.32. It raised its 2027 revenue growth outlook to above 60%.
3. AI customer growth
AI customer annual run-rate revenue increased 288% year over year to $376 million. Revenue from customers spending more than $1 million annually grew 273% and accounted for 30% of total revenue. DigitalOcean introduced Managed Agents, Agent Learning Services and Agent Data Services during the quarter.
