DigitalOcean Holdings, Inc. (DOCN) saw its stock soar 5.01% during intraday trading on Wednesday, following the release of better-than-expected first-quarter financial results and raised fiscal-year guidance.

The cloud computing company reported adjusted earnings per share of 44 cents, beating the consensus estimate of 27 cents, and revenue of $257.90 million, exceeding the $249.74 million estimate. DigitalOcean also raised its fiscal-year 2026 adjusted EPS guidance to between $1.10 and $1.20 from between 75 cents and $1.00, and increased revenue guidance to between $1.13 billion and $1.14 billion from between $1.07 billion and $1.10 billion.

Multiple analysts responded by raising their price targets on the stock, with BofA Securities increasing its objective to $200 from $107, Barclays raising to $183 from $105, and Morgan Stanley boosting to $175 from $75. Analysts cited DigitalOcean's position as a beneficiary of agentic AI and its planned capacity expansion as factors supporting the positive outlook.