9/1011 sources · 5 publishersUpdated Nov 3, 19:32 UTC
DigitalOcean reports Q3 revenue surge and raises 2026 and 2027 outlook
DigitalOcean reported third-quarter 2026 revenue of $321.19M, up 39.9% year over year, while adjusted EPS reached $0.45. AI-customer annual recurring revenue rose to $376M, an increase of 288% from a year earlier. Management lifted its outlook, calling for fourth-quarter revenue of $348M-$351M and 2027 revenue growth of 60% or more.
Why it matters
The stronger outlook raises the revenue growth expectations investors will use for DigitalOcean’s near-term and 2027 valuation. The company’s adjusted profitability and AI-related expansion improved, but the reported GAAP loss leaves a measure of earnings quality for investors to assess.
Key facts
- 1Third-quarter revenue was $321.19M, up 39.9% year over year, while GAAP net loss was $42.61M. tradingview.com
- 2Adjusted EPS was $0.45 for the quarter. finance.yahoo.com
- 3AI-customer annual recurring revenue reached $376M, up 288% year over year. investing.com
- 4Fourth-quarter revenue guidance was $348M-$351M. investing.com
- 5Management projected 2027 revenue growth of 60% or more. investing.com
Open questions
- Fourth-quarter revenue guidance is reported as $349.5M in material 4 but as $348M-$351M in material 6; the materials do not explain the difference.
Summary written by AlphAI AI Desk from 11 of 11 sources. Not investment advice. Figures are as stated by the linked sources.