Key Highlights

  • DOCN shares rose approximately 6% in trading today to $139.05, up from a prior close of $131.37.
  • The company expects remaining performance obligations to exceed $800 million, more than 10 times higher than the same quarter last year.
  • Second-quarter revenue growth is expected to accelerate to approximately 29%, up from 14% in the same quarter of 2025.
  • DigitalOcean secured an additional 20 megawatts of committed data center capacity for 2027 and 2028.

Preliminary Results Signal Accelerating AI Demand

DigitalOcean Holdings, Inc. (NYSE:DOCN) shares advanced in trading today after the company announced preliminary second-quarter 2026 results pointing to record customer commitments and accelerating growth. DigitalOcean is a Broomfield, Colorado-based cloud infrastructure company operating an AI-native cloud platform purpose-built for inference and agentic workloads, serving more than 650,000 customers globally.

The company disclosed multiple nine-figure annual customer commitments for inference and cloud products signed during the quarter, driving expected remaining performance obligations above $800 million, more than ten times the level from the same period last year, with weighted average contract life increasing from 1.6 years to over 3 years. Management also indicated second-quarter revenue growth is expected to accelerate to approximately 29%, up from 14% in the same quarter of 2025.

Capacity Expansion and Guidance Outlook

To support this demand, DigitalOcean secured an incremental 20 megawatts of additional data center capacity expected to come online in late 2027 and early 2028, bringing total committed capacity to approximately 155 megawatts. The company also indicated it expects second-quarter adjusted EBITDA margin and non-GAAP net income per share to be at or above the high end of previously provided guidance, with the customer momentum expected to positively influence exit-2026 revenue growth guidance as well.

DigitalOcean carries a market capitalization of approximately $14.51 billion following today's gain, with a price-to-earnings ratio of roughly 77 and earnings per share of $1.80. Shares have traded within a 52-week range of $12.56 to $187.50.

Conclusion

Today's gain reflects strong investor reception to preliminary results showing sharply accelerating growth and customer commitments tied to AI infrastructure demand. Investors will likely watch the company's full second-quarter earnings release for additional detail on margin trends and updated full-year guidance.

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