DigitalOcean Holdings, Inc. (DOCN) Earnings
DigitalOcean Holdings, Inc. is expected to report next earnings on August 4, 2026 (in NaN days), with a consensus EPS estimate of $0.26. DOCN has beaten EPS estimates in 10 of its last 12 reported quarters (average surprise +14.1% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 5, 2026 | $0.27 | $0.44 | +63.0% | $258M | +3.3% |
| Feb 24, 2026 | $0.38 | $0.24 | -35.9% | $242M | +2.0% |
| Nov 5, 2025 | $0.31 | $0.33 | +6.5% | $230M | -3.4% |
| Aug 8, 2024 | $0.39 | $0.48 | +23.1% | $192M | +2.1% |
| May 10, 2024 | $0.38 | $0.43 | +13.2% | $185M | +1.2% |
| Feb 21, 2024 | $0.37 | $0.44 | +18.9% | $181M | +1.8% |
| Nov 2, 2023 | $0.36 | $0.44 | +22.2% | $177M | +2.2% |
| Aug 11, 2023 | $0.40 | $0.44 | +10.0% | $170M | -0.1% |
| Feb 16, 2023 | $0.19 | $0.28 | +47.4% | $163M | +1.2% |
| May 4, 2022 | $0.12 | $0.07 | -41.7% | $127M | +0.8% |
| Feb 24, 2022 | $0.09 | $0.10 | +11.1% | $120M | +0.5% |
| Nov 4, 2021 | $0.07 | $0.12 | +71.4% | $111M | +3.1% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 5, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
First, momentum is accelerating with Q1 revenue growth, million-dollar-plus customers and AI customer ARR growth. Second, launched the DigitalOcean AI Native Cloud, a significant product launch with five fully integrated layers. Third, invested $888 million in equity to strengthen balance sheet and secure 60 megawatts of incremental capacity. Fourth, raised near and medium-term guidance with 2026 revenue growth projection increased and 2027 revenue growth expected to be 50% or more. Also, discussed the agentic era, new product launches, and the importance of open source and integrated platform for AI native companies.
Guidance
For 2026, expect revenue growth of approximately 25% to 27% year-over-year with an exit growth rate approaching 30%. Adjusted EBITDA margins expected to be high 30s and adjusted free cash flow margins 9% to 12%. For 2027, expect revenue growth of 50% or more, with approximately 40% adjusted EBITDA margins and high teen adjusted free cash flow margins. Second quarter of 2026 expected revenue of $272 million to $274 million, 24% to 25% year-over-year growth. Second quarter adjusted EBITDA margins in the range of 37% to 38%.
Segment performance
Q1 revenue was $258 million, up 22% year over year. Million-dollar-plus customers growing 179% year-over-year to 183 million in ARR. AI customer ARR grew 221% to 170 million. ARR from $100,000 customers grew 73%, while $500,000 customers ARR grew 132%. ARR from $1 million plus customers reached 183 million, growing at 179% year over year. Inference and core cloud pull-through increased to more than 80% of total AI customer ARR. First quarter adjusted EBITDA was $105 million, up 21% year over year, with an adjusted EBITDA margin of 41%. Trailing 12-month adjusted free cash flow was $171 million, or 18% of revenue.
Analyst Q&A
Q: How relevant is the CPU renaissance for business and quantitative benefit?
A: Moving to agentic era requires more compute, new capacity is deploying full stack AI native cloud.
Q: Extent software capabilities can push revenue per megawatt higher?
A: Optimistic about driving arr per megawatt up with stickier services.
Q: How to think about B and raise cadence?
A: Richmond Data Center came online earlier, able to sell into it, pricing not seeing compression.
Q: Demand signals to watch?
A: ARR per megawatt, token efficiency.
Q: Contributions from new land vs existing conversions?
A: Healthy mix of new AI native customers and existing enterprise customers ramping up AI workloads.
Q: Sustainability of differentiation relative to neoclouds?
A: Our stack is well-integrated, open source, different from neoclouds focusing on training.
Q: Penetration of AI-driven workloads in customer cohorts?
A: Yes, expect numbers to keep going up.
Q: Customer selectivity and capex per megawatt?
A: Balancing pipeline, capex per megawatt higher with higher token capacity equipment.
Q: GPU and other pricing trends impact?
A: Have ability to adjust to market, more readily than some others.
Q: Gross margin profile of incremental capacity?
A: Operating margin better view, strong and compelling, will see small decrease with new capacity investment.
Q: Why customers enthusiastic about inference router and DeepSeq model?
A: AI natives run multiple models, open source, router important for finding right model, deep seek support due to open source embrace.
Q: How Cursor fit into guidance?
A: Fantastic customer, not predicating long-term guidance on single customer.
Q: Inning of inference and data center capacity constraint?
A: Inference in top of second inning, data center capacity still in active conversations for additional capacity.