Overview
- DigitalOcean reported first-quarter revenue of $257.9 million, up 22.4% year over year, with adjusted EPS of $0.44 that topped forecasts.
- Management lifted 2026 guidance to $1.13–$1.145 billion in revenue and set a 2027 growth goal above 50%.
- The shares reached an all-time high as Bank of America lifted its target to $200 and Barclays, Piper Sandler, and Morgan Stanley raised theirs.
- AI-focused metrics accelerated, with AI Customer ARR up 221% to $170 million and the $1 million-plus cohort up 179% to $183 million as the company leans into inference and agentic workloads.
- The company raised $888 million in a follow-on offering, repaid $500 million of term debt, committed roughly 60 MW more capacity to about 135 MW, and flagged about $100 million in 2026 one-time data center costs for liquid cooling.