DigitalOcean Holdings, Inc.: Beat — EPS $0.45, Revenue $321.19M
Earnings BeatQ3 2026 · Pre-market
Did DigitalOcean Holdings, Inc. (DOCN) beat earnings today?
Yes, DigitalOcean Holdings, Inc. (DOCN) beat Wall Street analyst expectations for Q3 2026, reporting higher-than-expected EPS and higher-than-expected revenue.
Earnings Per Share+40.63% surprise
$0.45Actual
Expected: $0.32
vs. year ago -16.7%
Total Revenue+4.71% surprise
$321.19MActual
Expected: $306.74M
vs. year ago +40.0%
Released Nov 03 · 7:00 AM ET
Earning Report
| Metric | Q3 2026 | Q3 2025 | YoY Change % |
|---|---|---|---|
| Revenue | $321.19M | $229.63M | +40.0% |
| Net Income (Loss) | ($42.61M) | $158.37M | -127.0% |
| GAAP Basic EPS | -$0.37 | $1.74 | -121.3% |
| GAAP Diluted EPS | -$0.37 | $1.51 | -124.5% |
| Non-GAAP Diluted EPS | $0.45 | $0.54 | -16.7% |
Financial Outlook / Guidance
| Metric | Q4 2026 Outlook | FY2026 Outlook | ||
|---|---|---|---|---|
| Guidance | Expected | Guidance | Expected | |
| Total revenue | $348M-$351M (+44-45% YoY) | $333.44MBeat +4.82% | $1.208B-$1.211B (+~34% YoY) | $1.18BBeat +2.50% |
| Adjusted EBITDA margin | 42%-43% | — | 41%-42% | — |
| Non-GAAP diluted net income per share | $0.30-$0.32 | $0.27Beat +14.81% | $1.60-$1.62 | $1.45Beat +11.03% |
| Fully diluted weighted average shares outstanding | ~128M-129M shares | — | ~122M-123M shares | — |
| Adjusted free cash flow margin | — | — | 20%-22% of revenue | — |
Q4 2026 Outlook
- Total revenue
- Guidance$348M-$351M(+44-45% YoY)Expected$333.44MBeat +4.82%
- Adjusted EBITDA margin
- Guidance42%-43%Expected—
- Non-GAAP diluted net income per share
- Guidance$0.30-$0.32Expected$0.27Beat +14.81%
- Fully diluted weighted average shares outstanding
- Guidance~128M-129M sharesExpected—
- Adjusted free cash flow margin
- Guidance—Expected—
FY2026 Outlook
- Total revenue
- Guidance$1.208B-$1.211B(+~34% YoY)Expected$1.18BBeat +2.50%
- Adjusted EBITDA margin
- Guidance41%-42%Expected—
- Non-GAAP diluted net income per share
- Guidance$1.60-$1.62Expected$1.45Beat +11.03%
- Fully diluted weighted average shares outstanding
- Guidance~122M-123M sharesExpected—
- Adjusted free cash flow margin
- Guidance20%-22% of revenueExpected—
Business Highlights
- ➤Launched Managed Agents to unify agentic tooling on one platform.
- ➤Added Agent Droplets, Agent Learning Services, and Agent Data Services.
- ➤Announced new agentic offerings at the inaugural Open Intelligence Summit.
- ➤Launched the Memphis data center ahead of schedule.
- ➤Delivered all three planned 2026 data centers on time or early.
- ➤Secured 20 MW of committed data-center capacity for 2028.
- ➤Expanded total committed data-center capacity to approximately 180 MW.
- ➤Shipped over 70 releases in 65 business days during Q3.
- ➤Added 21 new models to the product catalog.
- ➤Secured a $785M equipment lease facility to expand capacity.
Management Commentary
Paddy Srinivasan, CEO
“Revenue growth accelerated year-over-year to 40%, our fifth consecutive quarter of acceleration, and we added a record $160 million of ARR. The center of gravity in AI has shifted from people chatting with models to agents doing work, and agents need a different kind of cloud: one where inference, agent runtime, data, and learning operate as a single loop to enable agents to recursively self improve. We built that cloud, and the most sophisticated AI natives are building on it. Customers spending over $100,000 a year now represent 41% of our revenue, and they are not renting capacity; they are adopting the platform. Inference Engine token volume grew roughly 10x quarter-over-quarter and we launched Managed Agents, Agent Learning Services, and Agent Data Services to complete the loop. We are different by design with a unique platform, durable and profitable growth, a diverse customer base, 2026 capacity delivered on or ahead of schedule and 20 incremental megawatts secured for 2028, and a flexible balance sheet. We continue to accelerate and are raising our outlook again: we now expect Q4 2026 revenue growth of 44-45% and to deliver 60%+ revenue growth for full year 2027.”