Q3 25 EPS
$0.54
BEAT +9.47%
Est. $0.49
Q3 25 Revenue
$229.6M
BEAT +1.35%
Est. $226.6M
vs S&P Since Q3 25
+232.6%
BEATING MARKET
DOCN +242.1% vs S&P +9.4%
Market Reaction
Did DOCN Beat Earnings? Q3 2025 Results
DigitalOcean delivered a strong third quarter, posting revenue of $229.63 million, up 15.7% year-over-year and ahead of the $226.58 million consensus estimate, while non-GAAP diluted EPS of $0.54 cleared the $0.49 analyst expectation by 9.47%, a resu… Read more DigitalOcean delivered a strong third quarter, posting revenue of $229.63 million, up 15.7% year-over-year and ahead of the $226.58 million consensus estimate, while non-GAAP diluted EPS of $0.54 cleared the $0.49 analyst expectation by 9.47%, a result that stands in sharp contrast to those anticipating a stumble from the cloud provider. The headline beat was underpinned by record incremental organic ARR of $44 million and direct AI revenue more than doubling year-over-year for the fifth consecutive quarter, as the company's push to position itself as a "unified agentic cloud" continued to gain commercial traction. Larger customers proved especially potent, with accounts above $100K in annual run-rate growing revenue 41% year-over-year and now comprising 26% of total revenue. Adjusted EBITDA reached $99.79 million at a 43% margin, supported by sharply lower capital expenditures. Looking ahead, DigitalOcean raised its full-year 2025 revenue guidance to $896-$897 million and said it expects to achieve its 2027 growth targets of 18-20% a full year early, in 2026.
Key Takeaways
- • Direct AI revenue more than doubled year-over-year for the fifth consecutive quarter
- • Customers with >$100K ARR grew revenue 41% YoY, now representing 26% of total revenue
- • Customers with >$1M ARR driving $110M total ARR, up 72% YoY
- • Record incremental organic ARR of $44 million, highest in company history
- • Net Dollar Retention Rate improved to 99% from 97% in Q3 2024
- • Remaining Performance Obligation grew to $47 million from $10 million year-over-year
DOCN YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
“DigitalOcean's unified agentic cloud is driving accelerated momentum in Q3. Revenue increased 16% year over year and we delivered the strongest incremental organic ARR in our history.”
— Paddy Srinivasan, Q3 2025 Earnings Press Release
DOCN Earnings Trends
DOCN vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
DOCN EPS Trend
Earnings per share: estimate vs actual
DOCN Revenue Trend
Quarterly revenue: estimate vs actual
DOCN Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | $0.26 | — | — | — | — |
| Q4 25 BEAT FY | $0.38 | $0.44 | +15.52% | $242.4M | +1.96% |
| FY Full Year | $2.05 | $2.12 | +3.59% | $901.4M | +0.52% |
| Q3 25 BEAT | $0.49 | $0.54 | +9.47% | $229.6M | +1.35% |
| Q2 25 BEAT | $0.47 | $0.59 | +26.18% | $218.7M | +0.96% |
| Q1 25 BEAT | $0.44 | $0.56 | +26.35% | $210.7M | +1.00% |