On July 9, DigitalOcean Holdings rose 5.11% in regular trading, trading at $142.93/share, with turnover of $75.48 million. The rally was driven by a UBS research note affirming that the company's pre-announced Q2 results came in better than expected, supported by positive business momentum.

UBS noted that DigitalOcean's Richmond data center, which came online in March, is now running near full capacity, while the newly launched Kansas City facility's ramp-up will be the key swing factor for Q3 revenue. A longer-than-expected backlog duration also lowers near-term churn risk. UBS adjusted its price target to $155 from $175 while maintaining a neutral rating, citing the scale of upcoming capacity additions as the biggest driver of long-term earnings potential.

The company earlier pre-disclosed record Q2 financials, projecting approximately 29% year-over-year revenue growth with remaining performance obligations expected to exceed $800 million — a more than tenfold increase from the year-ago period. Multiple nine-figure annual customer commitments were signed during the quarter for AI inference and cloud products. BofA Securities previously identified DigitalOcean as a core agentic AI beneficiary, forecasting revenue growth exceeding 50% in fiscal year 2027.

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