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DOCNDigitalOcean Holdings, Inc.
$146.00$17.1B
Overview & Tools
OverviewChart Terminal ↗Visualize
Valuation & Forecasts
Valuation ModelsEstimatesDCF Model
Price & Analyst Data
Analyst TargetsPrice History
Financial Statements
Income StatementBalance SheetCash FlowRatios & Margins
Performance
P/E HistoryRevenue HistoryEarnings HistoryDividend HistoryTotal Return
Discovery & Screens
Live BreakoutsStock ScreenerOwnership
DOCN logo

DigitalOcean Holdings, Inc.

DOCN
NYSE · Infrastructure Software
$146.00
At close - Sep 22, 4:00 PM EDT - USD
Market Cap$17.07B
P/E57.9x
52W High$187.50
Volume2.65M
OverviewTerminalAnalysisFinancialsValuationEarningsBreakoutsOwnership
VCP Research Verdict2026Q2

AI-Driven Growth Surge Masks Leverage Risk

DigitalOcean is experiencing a significant acceleration in revenue growth, reaching 28.6% YoY in 2026Q2, driven by AI-related demand. However, this growth is accompanied by compressed gross margins (55.0% in 2026Q2) and a substantial increase in leverage (debt...

GrowthAccelerating
ProfitabilityModerate
ValuationExpensive
TechnicalsHealthy
Explore valuation models
MARKET ACTION

DOCN price & volume

Price trend, volume and key moving averages

Launch Terminal
Loading chart...
Decision Checklist4 Core Signals

What matters now

The signals most likely to change the investment case.

01

Earnings momentum

12/12 Beats

EPS beat 12 of last 12 quarters

02

Valuation risk

+56% Peers

P/E is 56% above peer median

03

Market leadership

RS 92 · Leader

High momentum (Outperforming 92% of market)

04

Healthy Uptrend

Uptrend

Price > 50DMA > 200DMA

Next CatalystEstimated earnings · Nov 4
01

Build the investment case

Start with the evidence for owning the stock and the risks that can break the thesis.

EXECUTIVE THESIS

The Investment Case

Full Analysis
Fundamental Trajectory

Revenue growth accelerated to 28.6% YoY in 2026Q2, but gross margin contracted to 55.0% from 59.9% a year earlier, and operating margin fell to 10.4% from 16.3%, indicating negative operating leverage.

Analyst Consensus+18.3% target
Buy(19 analysts)
13 Buy6 Hold0 Sell

The Bull Case

Upside Catalysts

AI platform leadership

DigitalOcean is recognized as a key platform for AI workloads, from real-time agents to large-scale inference tasks.

Developer-first cloud strategy

The company's focus on developers and its upmarket expansion drive growth and customer loyalty.

Strong customer base

With over 650,000 customers and millions of developers, DigitalOcean has a broad and trusted user base.

The Bear Case

Key Downside Risks

Market performance

Price History →

Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).

YTD Return
DOCN+198.14%
S&P 500 (^GSPC)+13.20%
1-Year Return
DOCN+287.17%
S&P 500 (^GSPC)+15.98%
3-Year Return
DOCN+502.81%
S&P 500 (^GSPC)+76.49%
5-Year Return
DOCN+71.60%
S&P 500 (^GSPC)+64.45%
02

Test the fundamentals

Check whether operating performance supports the current valuation.

VALUATION & INTRINSIC VALUE

Valuation Scenarios

Valuation Analysis
Trailing P/EMedian
57.9x
Forward P/E
99.9x
EV/EBITDA80th %ile
59.6x
FCF YieldCash Flow
0.2%

Valuation vs 5-Year History

Multiple Range
Metric
Current
5Y Median
Historical Range
Percentile
P/E
57.9x
38.3x
67th· Fair
EV/EBITDA
59.6x
37.6x
80th· High
Price/FCF
415.4x
34.3x
100th· High
Current Multiple
5Y Median (50th %ile)

Intrinsic Value Scenarios

DCF Projection
Bear$21.79-85.1%
Base (Fair)$131.89+1.3%
Bull$40.80-72.1%
$21.79 Bear$131.89 Base$40.80 Bull
Current Market Price: $146.00
Trades at a 10.7% premium to Base DCF ($131.89)
Open DCF & Valuation Models →Chart Terminal ↗

Growth & profitability

Annual revenue & EPS trend
Revenue
$901M+15.5% YoY
Net income
$259M+206.8% YoY
Free cash flow
$41M-57.3% YoY
Operating margin
17.4%+5.8 pts YoY
ROIC (TTM)15.6%
Avg ROIC 5Y-
ROE (TTM)-
Piotroski Score7 / 9
Financial Statements →
03

Monitor what changed

Recent results and news deserve attention only when they alter the forward view.

OPERATING RESULTS

Recent Earnings

Earnings History
EPS Beat Rate12/12 (100%)
Revenue Beat Rate8/12 (67%)
QuarterEPS (Act vs Est)Revenue (Act vs Est)
Q3 2026Latest
Aug 4, 2026
$0.45+72.9%
vs $0.26
$281M+0.8%
vs $279M
Q2 2026
May 5, 2026
$0.44+65.5%
vs $0.27
$258M+3.3%
vs $250M
Q1 2026
Feb 24, 2026
$0.44+15.8%
vs $0.38
$242M+2.0%
vs $238M
Q4 2025
Nov 5, 2025
$0.33+6.5%
vs $0.31
$230M+1.5%
vs $227M
Historical baseline: 12 quarters analyzedGAAP / Adjusted
MARKET COVERAGE

Latest News

5 Stories
GuruFocus·1d ago
DigitalOcean Launches Managed Agents, Bringing Agent Execution, Tool Access, and Inference Together on One Cloud

DigitalOcean Holdings, Inc. (NYSE: DOCN), the AI-Native Cloud, today announced the public preview of DigitalOcean Managed Agents. Managed Agents isa set of serv

Business Wire·1d ago
DigitalOcean Launches Managed Agents, Bringing Agent Execution, Tool Access, and Inference Together on One Cloud

BROOMFIELD, Colo.--(BUSINESS WIRE)--DigitalOcean Holdings, Inc. (NYSE: DOCN), the AI-Native Cloud, today announced the public preview of DigitalOcean Managed Agents. Managed Agents is a set of services that gives every agent its own harness runtime, governed tool access, and fast Serverless Inference in one place so that developers can easily scale agentic work without having to build and maintain infrastructure themselves. Developers can pick a harness they already use, connect tools, and have.

Benzinga·2d ago
DigitalOcean Stock Is Popping Today: What's Happening?

DigitalOcean Holdings Inc. (NYSE:DOCN) shares are soaring Monday. Stifel reiterated a Buy rating on the stock following the company's launch of its Advanced Edition for managed databases.

Fool - Investing News·5d ago
2 Growth Stocks I Plan to Buy if the Stock Market Crashes

A growing number of risks are threatening the bull market in stocks.

Filtered for DigitalOcean Holdings, Inc.More Headlines
04

Compare before deciding

Benchmark DOCN against direct peers instead of judging its metrics in isolation.

Peers Comparison

Key metrics vs top competitors for DigitalOcean Holdings, Inc. (DOCN)

Full Screener →
CompanyPriceMarket CapP/E RatioRev Growth (1Y)Net MarginROEDiv Yield
DOCN logoDOCNDigitalOcean Holdings, Inc.Current
$146.00$17.07B57.9415.48%28.76%——
FSLY logoFSLYFastly, Inc.
$26.08$4.08B-31.4214.78%-11.8%-8.46%—
NET logoNETCloudflare, Inc.
$352.95$125.27B-1217.0529.85%-8.21%-13.86%—
AKAM logoAKAMAkamai Technologies, Inc.
$118.34$17.2B38.555.44%9.51%8.49%—
BAND logoBANDBandwidth Inc.
$58.40$1.88B-135.810.71%0.27%0%—
AMZN logoAMZNAmazon.com, Inc.
$254.98$2.74T35.5612.38%17.44%30.5%—

Compare DOCN vs Peers

DigitalOcean Holdings, Inc. (DOCN) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.

Closest Rival

vs FSLY

Most directly comparable listed peer for DOCN.

Scale Benchmark

vs NVDA

Larger-name benchmark to compare DOCN against a more recognizable public peer.

Peer Set

Compare Top 5

vs FSLY, NET, AKAM, BAND

05

Keep researching

Verify the primary filings, follow material updates, and answer the remaining questions.

DOCN SEC Filings & Documents

DigitalOcean Holdings, Inc. (DOCN) SEC filings — annual & quarterly reports (10-K, 10-Q)

8-K Announcements

6
Material company update

Aug 4, 2026·SEC

Material company update

Jul 24, 2026·SEC

Material company update

Jul 23, 2026·SEC

10-K Annual Reports

3
FY 2026

Feb 24, 2026·SEC

FY 2025

Feb 25, 2025·SEC

FY 2024

Feb 21, 2024·SEC

10-Q Quarterly Reports

6
FY 2026

Aug 4, 2026·SEC

FY 2026

May 5, 2026·SEC

FY 2025

Nov 5, 2025·SEC

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DOCN Frequently Asked Questions

DigitalOcean Holdings, Inc. (DOCN) stock FAQ — growth, dividends, profitability & financials explained

Growth & Financials
What is DigitalOcean Holdings, Inc.'s revenue?

DigitalOcean Holdings, Inc. (DOCN) reported $1.01B in revenue for fiscal year 2025. This represents a 398% increase from $203.1M in 2018.

How fast is DigitalOcean Holdings, Inc. growing?

DigitalOcean Holdings, Inc. (DOCN) grew revenue by 15.5% over the past year. This is strong growth.

Is DOCN profitable?

Yes, DigitalOcean Holdings, Inc. (DOCN) is profitable, generating $235.2M in net income for fiscal year 2025 (28.8% net margin).

Dividend & Returns
What is DigitalOcean Holdings, Inc.'s free cash flow?

DigitalOcean Holdings, Inc. (DOCN) generated $14.9M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

What if you invested $1,000 in DOCN back in 2018?

Total return calculator · dividends reinvested · 8+ years of data

See returns →