Q1 26 EPS
$N/A
Est. $0.26
Q1 26 Revenue
N/A
Est. $249.8M
vs S&P Since Q1 26
+8.1%
BEATING MARKET
DOCN +15.0% vs S&P +6.8%
Market Reaction
Did DOCN Beat Earnings? Q1 2026 Results
DigitalOcean Holdings, Inc. Delivered a blowout second quarter for fiscal 2026, posting non-GAAP diluted EPS of $0.45 against a consensus estimate of $0.26, a beat of 72.94% that extended the company's winning streak to four consecutive quarters of t… Read more DigitalOcean Holdings, Inc. Delivered a blowout second quarter for fiscal 2026, posting non-GAAP diluted EPS of $0.45 against a consensus estimate of $0.26, a beat of 72.94% that extended the company's winning streak to four consecutive quarters of topping EPS expectations. Revenue came in at $281.18 million, edging past the $278.82 million consensus and growing 28.6% year-over-year, as the company's accelerating pivot toward AI-native cloud infrastructure proved to be the central driver of outperformance; AI Customer ARR surged 212% year-over-year to $234.00 million, while RPO ballooned to $894.00 million from just $71.00 million a year ago, signaling robust committed future demand. Adjusted EBITDA of $113.56 million held a 40% margin even as R&D spending climbed to $57.52 million to fund capacity expansion, and some observers have flagged execution risk tied to the company's aggressive financing posture. Looking ahead, DigitalOcean raised full-year 2026 revenue guidance to $1.17-$1.18 billion and expressed confidence in exceeding 50% revenue growth in 2027.
Key Takeaways
- • AI Customer ARR grew 212% year-over-year to $234 million
- • Million-dollar-plus customer ARR grew 214% year-over-year to $259 million
- • Record $93 million of incremental ARR added during the quarter, up 191%
- • Revenue from $100K+ customers grew 98% and now represents 35% of total revenue
- • Revenue from $500K+ customers grew 160% and represents 26% of total revenue
- • Revenue from $1M+ customers grew 214% and represents 23% of total revenue
- • 85% of AI customer ARR comes from inference and core cloud rather than bare metal
- • Early Inference Engine customers drove total token consumption up approximately 30x in 60 days
DOCN YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
“Our growth rate is accelerating, as revenue grew 29% year-over-year, more than double our growth rate a year ago. The acceleration is coming from our highest spending customers and sophisticated AI Natives, and we are now beginning to land nine-figure annual commitments. Early Inference Engine customers drove their total token consumption up approximately 30x in the last 60-days, and 85% of our AI customer ARR now comes from inference and core cloud rather than bare metal. Just as important is how we are growing: attractive margins, positive free cash flow, capacity delivered on or ahead of schedule, and a stronger balance sheet. Our customer momentum and early product traction give us confidence to raise our 2026 revenue outlook to approximately 30%, reaching 35% or more by Q4 2026, and strengthen our conviction in our ability to exceed 50% growth in 2027.”
— Paddy Srinivasan, Q1 2026 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
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $0.26 | $0.45 | +72.94% | $281.2M | +0.85% |
| 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% |