DigitalOcean 3Q 2026: Revenue $321.19M, Net income ($42.61M), EPS ($0.37) — 10-Q Summary
DigitalOcean reported 3Q 2026 revenue of $321.19M, up 39.9% YoY, but a net loss of $42.61M and EPS loss of $0.37. This compares to a net income of $158.37M and EPS of $1.51 in the same quarter last year. DNE customers contributed 69% of revenue, and AI customers' annual recurring revenue reached $376M. The company is expanding its cloud and AI platform and data-center capacity.
How this was made
The 30-second read
Why it matters
The earnings miss may trigger short‑term price pressure, but AI revenue growth could support a longer‑term recovery.
Market read
Earnings release is material for traders focused on small‑cap tech and cloud services.
What to watch
Management's continued investment in GPU infrastructure may position the company for future upside.
Background
DigitalOcean's Q3 2026 filing provides the first public disclosure of its latest financial results.
Ticker impact
DigitalOcean reported Q3 2026 revenue of $321.19M (up 39.9% YoY) and a net loss of $42.61M, EPS -$0.37.
likely downside as the market prices in the unexpected loss
The surprise shift from a $158.37M profit a year ago to a $42.61M loss signals weaker performance and may trigger sell pressure.
Market effects
Cloud‑infrastructure sector may see broader scrutiny as AI‑related spend slows.
U.S. small‑cap tech indices could be modestly affected.
Limited; impact confined to DigitalOcean and comparable cloud providers.
Counterpoint
If investors view the AI revenue growth as a long‑term tailwind, the stock could rebound despite the loss.
Key entities
- companyDigitalOcean Holdings, Inc.
U.S.-listed cloud‑infrastructure provider (ticker DOCN).