Stock Track | DigitalOcean Soars 5.11% Intraday on Strong Q4 Earnings Beat and AI Traction

Stock Track

02/24

DigitalOcean Holdings, Inc. (DOCN) saw its stock price soar 5.11% during intraday trading on Tuesday, following the release of its quarterly financial results.

The cloud services provider reported fourth-quarter revenue of $242.39 million, beating analyst estimates of $237.7 million. Adjusted earnings per share came in at $0.44, surpassing the consensus estimate of $0.38. The strong performance was driven by significant traction in its AI business, with AI customer annual recurring revenue reaching $120 million, representing a 150% year-over-year increase. Furthermore, revenue from million-dollar customers grew 123% year-over-year, contributing to a record $51 million in incremental organic ARR.

Following the strong quarterly results, DigitalOcean raised its revenue outlook for 2026 and 2027, citing continued momentum from AI and large customer growth. The company now expects 2026 revenue growth of 21%, with a target to reach 30% growth by 2027.

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(DOCN) saw its stock price soar 5.11% during intraday trading on Tuesday, following the release of its quarterly financial results.</p><p>The cloud services provider reported fourth-quarter revenue of $242.39 million, beating analyst estimates of $237.7 million. Adjusted earnings per share came in at $0.44, surpassing the consensus estimate of $0.38. The strong performance was driven by significant traction in its AI business, with AI customer annual recurring revenue reaching $120 million, representing a 150% year-over-year increase. Furthermore, revenue from million-dollar customers grew 123% year-over-year, contributing to a record $51 million in incremental organic ARR.</p><p>Following the strong quarterly results, DigitalOcean raised its revenue outlook for 2026 and 2027, citing continued momentum from AI and large customer growth. 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