DigitalOcean Holdings, Inc. (DOCN.US) surged more than 34% at the start of trading on Tuesday, reaching a record high and bringing its year-to-date gain to 204%. The sharp increase followed the company's announcement of its first-quarter fiscal 2026 results on May 4. Revenue for the quarter reached $257.9 million, a 22% year-over-year increase, surpassing market expectations of $249.68 million. Adjusted earnings per share came in at $0.44, also beating the consensus estimate of $0.26.

Concurrently, DigitalOcean raised its full-year 2026 revenue guidance to a range of $1.13 billion to $1.145 billion, with a midpoint of $1.1375 billion. However, this revised outlook remains below the market's general expectation of $1.43 billion. The company also projected that revenue growth for fiscal 2027 would exceed 50%.

In addition, DigitalOcean disclosed that the annual recurring revenue from its AI customers has reached $170 million, marking a 221% increase compared to the previous year. Annual recurring revenue from customers contributing over $1 million has grown to $183 million, up 179% year-over-year, highlighting robust growth momentum in both its AI-related services and its high-value client segment.