DigitalOcean Holdings, Inc. Q3 2026 Earnings Recap

DigitalOcean reported accelerating growth and raised its outlook, while the stock’s 0.8% gain was roughly flat. The quarter included rapid AI-related growth and higher margins, but the modest market reaction suggests investors did not treat the upbeat results and outlook as a decisive positive surprise.

Key Takeaways

• Q3 revenue was $321 million, up 40% year over year; ARR reached approximately $1.28 billion, also up 40%.
• AI customer ARR grew 288% to $376 million, and token volume increased roughly 10x quarter over quarter.
• Adjusted EBITDA margin was 45%, and non-GAAP EPS was $0.45; both were above company guidance.
• The company raised its full-year 2026 and 2027 revenue outlook, projecting Q4 revenue growth of 44%–45% and at least 60% growth for full-year 2027.
• Management said demand continues to exceed available supply and that it is working to secure capacity for future expansion.