DigitalOcean Holdings, Inc.

How has the stock done?

Change in closing price from the first day shown, or with Price the closing price itself. Prices: Yahoo Finance, to Nov 12, 2026. Dashed lines: the days the company released earnings (its SEC 8-K filings); EPS estimates: Yahoo Finance. The stock's move after a release runs from the last close before its day to the close the day after (or five days after), so a release before the open counts like one after the close.

Is the business growing?

Quarters: DigitalOcean Holdings, Inc.'s SEC filings, named by the month they end. Fiscal years: DigitalOcean Holdings, Inc.'s annual reports to the SEC.

How it makes money

Of every $100 in revenue, $28.8 ends up as net income. Net margin rose from −4.8% to 28.8% over the past 3 years.

Circled: Sep 2025 (net 69.0%, operating 19.6%), Sep 2026 (net −13.3%, operating 10.3%). Net margin is usually about 1 point above operating margin; in those quarters something below operating income (a tax charge or benefit, a gain or loss on investments, a write-down) moved it, not the business itself.

Each margin is that line of the income statement divided by revenue. Fiscal year: DigitalOcean Holdings, Inc.'s annual reports to the SEC; quarters: SEC filings.

Growth and margins together

Rule of 40 score 62.0 (growth 39.9% + FCF margin 22.1%): strong, clears the 40 line. Stock pay is 10.1% of revenue; counted as a cost, it brings the FCF margin down to 12.0%.

DigitalOcean Holdings trades at 10.7× revenue on 39.9% growth. PLTR grows fastest of its peers, 95.9%, and costs 55.3×.

Growth: revenue in the quarter ended Sep 2026 against the quarter ended Sep 2025. FCF margin: operating cash flow minus capex, over revenue, for the 4 quarters ended Sep 2026. From SEC filings.

Customers and suppliers

In its latest annual report DigitalOcean Holdings buys from AMD, NVIDIA; sells to Laravel.

Their suppliers

ASE Technology ASXto AMD

TSMC TSMto AMD, NVIDIA

UMC UMCto AMD

Coherent COHRto NVIDIA

IREN IRENto NVIDIA

Micron Technology MUto NVIDIA

Show 6

Suppliers

AMD AMD

NVIDIA NVDA

 

DOCNDigitalOcean Holdings

Customers

Laravel

Partners

LaravelStrategic partnership supporting Laravel VPS offering

FfalStrategic partnership augmenting product offerings

AMD AMDDigitalOcean-powered developer cloud partnership

PPersistent SystemsMake AI affordable, scalable, and secureMulti-year partnership; eight figure average per annum, announced in 2025

MongoDB MDBFully-managed database as a service offering

Changes since the previous annual report (10-K filed Feb 25, 2025)

AMD AMDNamed for the first time, as a supplier and a partnerNVIDIA NVDANamed for the first time, as a supplier

LaravelNamed for the first time, as a customer and a partner

FfalNamed for the first time, as a partner

PPersistent SystemsNamed for the first time, as a partnerMulti-year partnership; eight figure average per annum, announced in 2025

HHugging FaceNo longer named (was a partner)

Only the companies DigitalOcean Holdings names in its 10-K filed Feb 24, 2026 (SEC). The supply chain joins the latest annual reports of the companies on it and the 8-Ks they filed since: a link shows when either side's report names the other, so it grows as more reports are read. Hover a name for the filing's own words.

Is it expensive?

EV/revenue of 10.7x, below the peer median of 22.9x.

EV/revenue below the peer median of 22.9x: cheaper than its peers.

Compared on enterprise value (market cap plus debt minus cash) per $1 of revenue: for companies that reinvest what they earn or borrow to grow (software, AI data centers), P/E can mislead.

What analysts expect

The average analyst price target is $160, 78% above the current price; 88% of 17 analysts rate it a buy; earnings beat estimates in all of the last 4 quarters.

Buy or Strong Buy: 15 analysts (88%). Sell or Strong Sell: 0.

Over the past year the average of the analysts' latest price targets went from $49.50 to $161.00 (+225%), while DOCN went from $45.19 to $90.07 (+99%). In the past three months targets were raised once and cut 8 times. 3 upgrades and no downgrades over the year; the latest: Piper Sandler moved it to Overweight from Neutral on Oct 21, 2026.

The day after each of these reports the stock moved +0.1% (Dec 2025, beat); +48.0% (Mar 2026, beat); −2.1% (Jun 2026, beat); −6.4% (Sep 2026, beat).

For the quarter ending Dec 2026, analysts expect adjusted earnings of $0.32 a share, 28% less than the $0.44 of a year earlier, and revenue of $351M, up 45% on a year earlier. For the fiscal year ending Dec 2027, they expect adjusted earnings of $1.97 a share, and revenue of $2.0B, up 62% on the year before's estimate.

Targets, ratings and earnings estimates: Yahoo Finance. Rating and target changes: Yahoo Finance's list of upgrades and downgrades. The average target on each day is the average of every listed firm's latest target set in the 180 days before it, so it counts fewer analysts than the average target above, and the band is the middle half of those targets (a quarter of the firms are above it, a quarter below); a target set before a stock split is divided by the split. Expected figures: the average of the analysts' estimates (Yahoo Finance). Their EPS is adjusted, as analysts estimate it, so it is set against the adjusted EPS Yahoo reports for the same quarters, not the GAAP EPS of the growth and valuation sections; revenue against the SEC filings. No change is given against a quarter whose reported EPS was more than 50% off its own estimate (often a one-off gain or charge), nor against a year that counts one. Each estimate is pinned to its fiscal period by the report date or the period's end, and one that cannot be is left out.

Where the cash goes

Generated $244M in free cash flow over the year, with no dividends and no buybacks. All of the cash stays in the company.

DigitalOcean Holdings had 115M diluted shares in the quarter ended Sep 2026, 8.7% more than a year earlier, and 1.4% more each year on average since Jun 2021. Over the last four quarters its earnings per share fell 87.5% and its net income fell 86.4%: more shares took about 1 point off.

Free cash flow: operating cash flow minus capital spending on property, plant and equipment, from SEC filings, for the last 4 quarters and by quarter. Shares: each quarter's diluted weighted average as filed with the SEC, since the stock's listing and its latest split.

Financial health

Current ratio 0.7, short-term debt coverage is tight; shareholder equity is below zero; net debt is 2.8 years of operating cash flow, which is manageable.

Latest fiscal year balance sheet. Source: Yahoo Finance.

Who holds it

In the filings of 4 funds whose copy leaves DOCN out (on the exchange, not in the app yet): Polen Capital Management, Swiss National Bank, Mirae Asset Global Investments, Canada Pension Plan Investment Board.

What did the funds Hunch tracks do?

Of the 83 funds whose 13F filings Hunch reads, 6 held DOCN at the end of their latest quarter (for most, Q2 2026). Over that quarter 3 added shares, 2 cut and 1 bought new. The largest of them is Swiss National Bank, 195,000 shares worth $26.0M at Sep 30, 2026, 24.6% more than a quarter earlier.

From the 13F filings of the 83 funds Hunch tracks, not of every institution: each fund's shares of DOCN at its latest quarter end against the quarter before, as filed (long positions only, options left out), the quarter before put on the latest quarter's share count across a split. A fund files 45 days after its quarter ends, so some have a newer quarter than others. Value is at the quarter end.

Are insiders buying or selling?

Officers and directors sold $17.0M of DOCN on the open market in the 12 months to Nov 11, 2026; none bought. 53% of the sales were made under 10b5-1 plans, set up in advance. The largest was Matt Steinfort (Chief Financial Officer), who sold $7.7M in 4 sales.

From the Form 4s filed with the SEC about DigitalOcean Holdings, Inc. (55 in the 12 months): purchases (code P) and sales (code S) on the open market by its officers and directors, at the price each filing gives (often an average of the day's trades). A sale is a 10b5-1 sale when its filing says it was made under such a plan, set up in advance. Not counted: 52 other transactions (grants, option exercises, shares withheld for tax and other transfers). Also not counted: 20 trades by holders of more than 10% who are neither officers nor directors.