DigitalOcean Holdings, Inc. (DOCN) experienced a significant pre-market decline of 5.47% on Tuesday, as the stock moved sharply lower following the release of its quarterly financial results and forward guidance.
The cloud services provider reported fourth-quarter revenue of $242.39 million, which exceeded the IBES estimate of $237.7 million, and highlighted strong traction with its AI-focused Agentic Inference Cloud. Despite these positive results from the past quarter, investor sentiment turned negative due to the company's outlook for the coming year.
DigitalOcean issued guidance for 2026 adjusted earnings per share in the range of $0.75 to $1.00, which fell significantly short of the FactSet consensus estimate of $1.96. This substantial gap between the company's projection and analyst expectations appears to be the primary driver behind the pre-market sell-off.