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DOCNDigitalOcean Holdings, Inc.
$72.48$8.5B
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 · Cloud & Data Centers
$72.48
At close - Nov 6, 4:00 PM EST - USD
Market Cap$8.47B
P/E242.7x
52W High$187.50
Volume7.95M
OverviewTerminalAnalysisFinancialsValuationEarningsBreakoutsOwnership
VCP Research Verdict2026Q3

AI Revenue Reacceleration Meets Margin Compression and Rising Leverage

DOCN revenue has reaccelerated to roughly 29% year-over-year growth in 2026Q3, with quarterly revenue rising from $192.5M in 2024Q2 to $321.2M, suggesting AI-driven workload demand is becoming a real growth driver.

GrowthExpanding
ProfitabilityModerate
ValuationExpensive
TechnicalsWeak
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

+701% Peers

P/E is 701% above peer median

03

Market leadership

RS 29 · Lag

Laggard (Underperforming 71% of market)

04

Weak Trend

Below 200DMA

Price < 200DMA

Next CatalystEstimated earnings · Feb 3
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 grew from $192.5M to $321.2M over the ten-quarter window, but gross margin fell from 61.4% to 50.1% and the 2026Q3 net margin of -13.3% contrasts with a 69.0% net margin in 2025Q3 that was likely distorted by non-operating items.

Analyst Consensus+122.3% target
Buy(19 analysts)
14 Buy5 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 11/8/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).

YTD Return
DOCN+48.01%
S&P 500 (^GSPC)+7.63%
1-Year Return
DOCN+53.95%
S&P 500 (^GSPC)+9.69%
3-Year Return
DOCN+203.90%
S&P 500 (^GSPC)+73.90%
5-Year Return
DOCN-35.60%
S&P 500 (^GSPC)+60.08%
02

Test the fundamentals

Check whether operating performance supports the current valuation.

VALUATION & INTRINSIC VALUE

Valuation Scenarios

Valuation Analysis
Trailing P/E5Y High
242.7x
Forward P/EExpansion
46.4x
EV/EBITDA40th %ile
25.6x
FCF YieldCash Flow
1.0%

Valuation vs 5-Year History

Multiple Range
Metric
Current
5Y Median
Historical Range
Percentile
P/E
242.7x
38.3x
100th· High
EV/EBITDA
25.6x
37.6x
40th· Fair
Price/FCF
96.5x
34.3x
60th· Fair
Current Multiple
5Y Median (50th %ile)

Intrinsic Value Scenarios

DCF Projection
Bear$22.87-68.4%
Base (Fair)$123.79+70.8%
Bull$41.50-42.7%
$22.87 Bear$123.79 Base$41.50 Bull
Current Market Price: $72.48
Trades at a 41.4% discount to Base DCF ($123.79)
Open DCF & Valuation Models →Chart Terminal ↗

Growth & profitability

Annual revenue & EPS trend
Revenue FY25
$901M+15.5% YoY
Net income FY25
$259M+206.8% YoY
Free cash flow FY25
$41M-57.3% YoY
Operating margin FY25
17.4%+5.8 pts YoY
ROIC (FY25)15.6%
Avg ROIC 5Y3.3%
ROE (TTM)4.3%
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)
Q4 2026Latest
Nov 3, 2026
$0.45+41.8%
vs $0.32
$321M+4.7%
vs $307M
Q3 2026
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
Historical baseline: 12 quarters analyzedGAAP / Adjusted
MARKET COVERAGE

Latest News

4 Stories
Business Wire·2d ago
DigitalOcean Launches Cuttlefish to Supervise AI Agents From Anywhere, With Box as Launch Partner

SAN FRANCISCO--(BUSINESS WIRE)--At BoxWorks, DigitalOcean (NYSE: DOCN), the AI-Native Cloud, today announced a collaboration with Box to support enterprise developers building agents on business content, alongside the launch of DigitalOcean Cuttlefish, a native iPhone app for Managed Agents. DigitalOcean expects enterprises to build on the Box platform, Managed Agents, and Cuttlefish together to take on domain- and function-specific work across teams such as legal, finance, engineering, and sup.

Benzinga·2d ago
Top 5 AI Stocks to Buy After Midterm Elections: This Strategist Calls the Sell-Off a Massive Opportunity

The post-midterm election decline in artificial intelligence (AI) equities presents a buying opportunity, according to Shay Boloor, Chief Market Strategist of Futurum Equities. Boloor stated that the market is incorrectly treating regional data center development delays as a drop in overall AI compute demand.

MarketBeat·4d ago
DigitalOcean Q3 Earnings Call Highlights

DigitalOcean NYSE: DOCN reported third-quarter 2026 revenue of $321 million, up 40% from a year earlier, as the cloud provider cited accelerating demand for AI inference, agentic applications and related cloud services. The company raised its revenue outlook for both 2026 and 2027.

The Motley Fool·4d ago
DigitalOcean: 3 Key Takeaways for Long-Term Investors

DigitalOcean expects revenue growth of 60% or more in 2027. 90% of AI customer revenue comes from core cloud consumers.

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
$72.48$8.47B242.6515.48%3.11%4.27%—
FSLY logoFSLYFastly, Inc.
$15.85$2.48B-40.3314.78%-8.74%-6.45%—
NET logoNETCloudflare, Inc.
$268.75$95.39B-401.4829.85%-8.75%-15.75%—
AKAM logoAKAMAkamai Technologies, Inc.
$83.09$12.08B32.385.44%8.84%7.84%—
BAND logoBANDBandwidth Inc.
$40.34$1.3B184.960.71%1.01%2.24%—
AMZN logoAMZNAmazon.com, Inc.
$259.30$2.79T21.0312.38%16.9%26.71%—

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

Nov 3, 2026·SEC

Material company update

Aug 4, 2026·SEC

Material company update

Jul 24, 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

Nov 3, 2026·SEC

FY 2026

Aug 4, 2026·SEC

FY 2026

May 5, 2026·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 $1.10B in revenue over the trailing twelve months. Revenue was $901.4M in fiscal year 2025. That is 344% more than the $203.1M of fiscal year 2018.

How fast is DigitalOcean Holdings, Inc. growing?

DigitalOcean Holdings, Inc. (DOCN) grew revenue by 27.6% over the trailing twelve months, compared with the twelve months before.

Is DOCN profitable?

Yes. DigitalOcean Holdings, Inc. (DOCN) earned $34.3M in net income over the trailing twelve months (a 3.1% net margin).

Dividend & Returns
What is DOCN's return on equity?

DigitalOcean Holdings, Inc. (DOCN) had a return on equity (ROE) of 4.3% over the trailing twelve months. That is below the market's typical 10-15%.

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

DigitalOcean Holdings, Inc. (DOCN) generated $87.8M in free cash flow over the trailing twelve months.

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

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

See returns →