DigitalOcean stock price rides AI wave, adds 40% on strong Q1 financials 

BROOMFIELD — Broomfield-based cloud-infrastructure provider DigitalOcean Holdings Inc. (NYSE: DOCN) saw its stock price surge more than 40% Tuesday after its first-quarter earnings report that highlighted its artificial-intelligence positioning. 

The company posted sales of $258 million in the most-recent period, up 22% year over year. Operating income in the first quarter of 2026 was $37 million, a dip of 3% from the same quarter last year.

In a Tuesday statement that accompanied the firm’s earnings report, DigitalOcean CEO Paddy Srinivasan said that his team “exceeded our revenue and profitability guidance. We launched the DigitalOcean AI-Native Cloud — the first cloud built end-to-end for the inference and agentic era — with more than 15 new product releases across five fully integrated layers, further differentiating us from bare-metal focused neo-clouds and inference wrappers that lack cloud platforms. We continue to invest in what we believe is a generational market opportunity, adding approximately 60 MW of incremental committed data center capacity that will come online throughout 2027 to support growing customer demand.”

DigitalOcean acquired Katanemo Labs Inc., a models and research company focused on infrastructure for agentic artificial intelligence, in April and has since rolled out its DigitalOcean AI-Native Cloud platform. 

The company this week called its new AI offering “the most significant product launch in our history, with 15+ new product launches across five fully integrated layers — infrastructure, core cloud, inference, data, and managed agents.”

Looking ahead, DigitalOcean has revised up its full-year 2026 sales projections to a range of $1.13 billion to $1.145 billion. “With this strong momentum, we are raising our 2026 revenue growth outlook to 26% and our 2027 revenue growth outlook to over 50%,” the company said.

DigitalOcean’s stock price finished trading Tuesday at $152.77, near its 52-week high and up 40.40% on the day.

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