DigitalOcean Q4 revenue beats on AI traction

DigitalOcean Holdings

24/02/2026 12:15

Overview

Agentic inference cloud's Q4 revenue rose 18%, beating analyst expectations

Company raises 2026 and 2027 revenue outlook after strong Q4 performance

Net income for 2025 increased 207% yr/yr, reaching $259 mln

Outlook

DigitalOcean raises 2026 revenue growth outlook to 21%

Company expects 2027 revenue growth to reach 30%

DigitalOcean forecasts Q1 2026 revenue between $249 mln and $250 mln

Result Drivers

AI TRACTION - DigitalOcean's Agentic Inference Cloud gained traction with AI and cloud-native customers, contributing to strong Q4 performance

LARGE CUSTOMER GROWTH - Revenue from million+ dollar customers grew 123% yr/yr, driving $133 mln in ARR

AI CUSTOMER REVENUE - AI customer ARR reached $120 mln, increasing 150% yr/yr, with over 70% from inference services and core cloud products

Company press release: ID:nBw1M4SrRa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$242.39 mln
$237.70 mln (13 Analysts)
Q4 Net Income
$25.66 mln
Q4 Gross Profit
$142.27 mln
Q4 Pretax Profit
$32.52 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for DigitalOcean Holdings Inc is $60.00, about 1.3% above its February 23 closing price of $59.24

The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 19 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)