DigitalOcean raises 2026 and 2027 revenue outlook after AI-driven Q1 beat
DigitalOcean Holdings Inc. reported Q1 revenue of $258 million, up 22% year-over-year, and raised its 2026 and 2027 revenue outlook due to accelerating demand for AI workloads. The company's AI customer annual run-rate revenue jumped 221% to $170 million.
DigitalOcean Holdings Inc. reported its Q1 2026 financial results, beating Wall Street targets with revenue of $258 million, a 22% year-over-year increase. Adjusted earnings per share were 44 cents, down from 56 cents in the same quarter last year. The company's AI customer annual run-rate revenue surged 221% to $170 million. DigitalOcean raised its full-year 2026 revenue guidance to $1.13 billion to $1.145 billion, representing 25% to 27% growth. It also expects 2027 revenue to grow more than 50%. The company added 60 megawatts of incremental committed data center capacity during the quarter and ended with over 650,000 customers across 20 data centers in five regions. DigitalOcean closed a follow-on offering of 11.9 million shares, raising $888 million in net proceeds.
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