Q1 26 EPS
$N/A
Est. $0.26
Q1 26 Revenue
N/A
Est. $249.8M
vs S&P Since Q1 26
+142.2%
BEATING MARKET
DOCN +148.0% vs S&P +5.8%
Market Reaction
Did DOCN Beat Earnings? Q1 2026 Results
DigitalOcean closed out fiscal 2025 on a strong note, posting Q4 revenue of $242.39 million, up 18.3% year over year and ahead of the $237.73 million consensus estimate, while non-GAAP diluted EPS of $0.44 cleared the $0.38 Wall Street forecast by 15… Read more DigitalOcean closed out fiscal 2025 on a strong note, posting Q4 revenue of $242.39 million, up 18.3% year over year and ahead of the $237.73 million consensus estimate, while non-GAAP diluted EPS of $0.44 cleared the $0.38 Wall Street forecast by 15.52%. The primary engine behind the beat was the company's accelerating push upmarket, with customers spending more than $1 million annually now generating $133 million in ARR, a 123% year-over-year gain that reflects deepening enterprise commitment. AI workloads added further fuel, with AI customer ARR reaching $120 million and growing 150% year over year, driven largely by inference services rather than bare metal GPU rentals, as illustrated by a recent customer case study showing 67% lower inference costs after migrating to DigitalOcean's platform. The company also reached $1 billion in annualized monthly run-rate revenue in December. Looking ahead, management raised its full-year 2026 revenue outlook to $1.07 to $1.10 billion, implying roughly 21% growth, with an ambition to exit the year at 25%-plus growth and accelerate toward 30% in 2027.
Key Takeaways
- • 18% year-over-year revenue growth driven by large customer expansion
- • $100K+ customer revenue grew 58% YoY and now represents 28% of total revenue
- • $1M+ customer ARR reached $133 million, growing 123% year-over-year
- • AI customer ARR reached $120 million, growing 150% year-over-year
- • Net Dollar Retention Rate improved to 101% from 99% in Q4 2024
- • Record $51 million incremental organic ARR added in Q4
- • More than 70% of AI customer ARR from inference services and core cloud products
DOCN Forward Guidance & Outlook
DigitalOcean initiated Q1 2026 guidance with revenue of $249–$250 million, adjusted EBITDA margin of 36%–37%, and non-GAAP diluted EPS of $0.22–$0.27. For full year 2026, the company raised its revenue outlook to $1.075–$1.105 billion (approximately 21% growth), with adjusted EBITDA margin of 36%–38%, adjusted free cash flow margin of 15%–17%, unlevered adjusted free cash flow margin of 18%–20%, and non-GAAP diluted EPS of $0.75–$1.00. Management expects to exit 2026 at 25%+ growth and reach 30% growth in 2027, targeting a 'weighted Rule of 50' profile by 2027.
DOCN YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
“AI is reshaping entire industries, and we are built for this shift. DigitalOcean's Agentic Inference Cloud is gaining further traction with large Cloud and AI Native customers that are driving the shift, which is evident in our strong Q4 performance and our increased outlook for 2026 and 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
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% |