DigitalOcean Holdings, Inc. (DOCN) surged 5.2% in pre-market trading ahead of its second-quarter earnings release, as investors cheered a robust preliminary results announcement and accelerating demand for artificial intelligence cloud services.

The cloud provider had previously guided to approximately 29% year-over-year revenue growth for Q2, while adjusted EBITDA margin and non-GAAP earnings per share were expected to hit or exceed the high end of its prior outlook. The company also revealed it signed multiple nine-figure annual customer commitments for AI inference and cloud products during the quarter, pushing remaining performance obligations to more than $800 million—a more than tenfold increase from the prior year. UBS analysts noted that the recently launched Richmond data center is already running near full capacity, underscoring the strong demand environment.

The stock had earlier faced a more than 15% decline after completing a $472 million convertible notes repurchase and issuing about 12.5 million new shares. With that short-term selling pressure now largely absorbed and fundamental expectations remaining elevated, bullish sentiment has recovered strongly heading into the official earnings report.