Overview
- Shares jumped roughly 16% Tuesday pre-market after the cloud provider beat Q1 forecasts with $257.9 million in revenue and $0.44 in adjusted EPS.
- Management raised 2026 revenue guidance to $1.13–$1.145 billion and set a 2027 growth goal of more than 50%.
- AI-focused demand accelerated, with AI Customer annual recurring revenue reaching $170 million for a 221% gain and the $1 million-plus cohort up 179% to $183 million.
- The company strengthened its balance sheet by selling 11.9 million shares for $888 million in net proceeds and retiring $500 million of term debt.
- To meet AI workloads, DigitalOcean committed capacity of about 135 megawatts and flagged roughly $100 million in 2026 one-time data-center costs that will weigh on free cash flow.