DigitalOcean Holdings, Inc. (DOCN) surged 5.10% in pre-market trading on Tuesday, as investors reacted to the company's second-quarter financial results that significantly exceeded analyst expectations and an improved full-year revenue forecast.

The cloud provider reported Q2 revenue of $281.18 million, up 29% year-over-year and slightly above the consensus estimate of $279.19 million. Adjusted earnings per share came in at $0.45, crushing the $0.26 analyst estimate. The company also raised its 2026 revenue outlook to a range of $1.17 billion to $1.18 billion, implying 30% to 31% growth, compared to the prior FactSet estimate of $1.16 billion.

Driving the bullish sentiment, DigitalOcean highlighted accelerating demand from large and AI-focused customers, with AI customer annual run-rate revenue surging 212% year-over-year to $234 million. The company signed its first nine-figure annual customer commitments for AI inference and cloud products during the quarter, pushing remaining performance obligations to $894 million—a more than tenfold increase from the prior year. Management also expressed confidence in exceeding 50% revenue growth in 2027, further fueling investor optimism.