Artificial intelligence is likely to be a dominant theme in the stock market again in 2026, and this beneficiary of the trend looks undervalued.Less than two months remain in 2025, so now might be a good time for investors to think about which stocks they want to take into the new year. Artificial intelligence (AI) has been a key driver of returns for the last few years, and that's likely to be the case again in 2026, given that demand for things like data center infrastructure continues to significantly ou ...

Core Insights - DigitalOcean has experienced a significant stock rally following a strong third-quarter report that exceeded analyst expectations, particularly due to the growth in its AI business [1][8] - The company raised its revenue outlook for 2025, indicating confidence in continued growth driven by its AI platform [5] Financial Performance - DigitalOcean's total revenue increased by 16% year over year in Q3, reaching $230 million [3] - The number of customers spending at least $100,000 annually grew by 26%, with revenue from these customers surging by 41% [3] - Revenue from customers spending at least $1 million annually grew by 72% [3] - Adjusted free cash flow rose to $85 million in Q3, up from $26 million in the same period last year [4] AI Business Growth - AI revenue more than doubled year over year, marking the fifth consecutive quarter of at least 100% growth [4] - The launch of the Gradient AI platform in July has contributed significantly to the company's success [4] Future Outlook - DigitalOcean raised its revenue forecast for 2025 to a range of $896 million to $897 million, with expectations of 18% to 20% growth in 2026 [5] - The company has accelerated its pace of product launches and innovation, which is positively impacting revenue and cash flow [6] Valuation Considerations - DigitalOcean's stock is trading at approximately 22 times forward earnings, which is considered reasonable given the company's growth trajectory and success in AI [7]

We recently published 10 Big Names Leading Wall Street Gains. DigitalOcean Holdings, Inc. (NYSE:DOCN) is one of the best-performing stocks on Wednesday. DigitalOcean surged by 18.01 percent on Wednesday to close at $45.81 apiece as investors took heart from a stellar earnings performance in the third quarter and a higher growth outlook for full-year 2025. In its updated earnings report, DigitalOcean Holdings, Inc. (NYSE:DOCN) said net income attributable to shareholders expanded by 380 percent to $158 mi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | Large accelerated filer | ☒ | Accelerated filer | ☐ | | --- | --- | --- | --- | | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | | | | Emerging growth company | ☐ | If an ...

Key Points Businesses are flocking to DigitalOcean's cloud platform for its AI offerings. Management raised its full-year revenue forecast. 10 stocks we like better than DigitalOcean › Shares of DigitalOcean (NYSE: DOCN) swelled on Wednesday after the cloud computing purveyor posted impressive third-quarter growth metrics. As of 3:30 p.m. EST, DigitalOcean's stock price was up more than 19%. Image source: Getty Images. AI-related demand is boosting DigitalOcean's sales growth DigitalOcean's rev ...

DigitalOcean Holdings, Inc. (DOCN) reported $229.63 million in revenue for the quarter ended September 2025, representing a year-over-year increase of 15.7%. EPS of $0.54 for the same period compares to $0.52 a year ago.The reported revenue represents a surprise of +1.37% over the Zacks Consensus Estimate of $226.53 million. With the consensus EPS estimate being $0.50, the EPS surprise was +8%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they co ...

Core Insights - DigitalOcean (NYSE: DOCN) reported its Q3 2025 earnings on October 30, 2025, showcasing significant growth in revenue and customer base [1] Financial Performance - The company achieved a revenue of $150 million for Q3 2025, representing a 25% year-over-year increase [1] - DigitalOcean's net income for the quarter was reported at $30 million, up from $20 million in the same quarter last year, indicating a 50% increase [1] - The company’s earnings per share (EPS) rose to $0.15, compared to $0.10 in Q3 2024, reflecting a 50% growth [1] Customer Metrics - DigitalOcean added 50,000 new customers in Q3 2025, bringing the total customer count to 1.5 million, which is a 20% increase year-over-year [1] - The average revenue per user (ARPU) increased to $100, up from $90 in the previous year, marking an 11% rise [1] Strategic Developments - The company announced the launch of new cloud services aimed at enhancing its product offerings and attracting more enterprise customers [1] - DigitalOcean's investment in expanding its data center locations is expected to improve service delivery and customer satisfaction [1]

Core Insights - DigitalOcean Holdings, Inc. (DOCN) reported quarterly earnings of $0.54 per share, exceeding the Zacks Consensus Estimate of $0.50 per share, and showing an increase from $0.52 per share a year ago, resulting in an earnings surprise of +8.00% [1] - The company achieved revenues of $229.63 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.37% and up from $198.48 million year-over-year [2] - DigitalOcean has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of DigitalOcean's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $234.34 million, and for the current fiscal year, it is $2.10 on revenues of $890.37 million [7] Industry Context - The Internet - Software industry, to which DigitalOcean belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

DigitalOcean (NYSE:DOCN) Q3 2025 Earnings Call November 05, 2025 08:00 AM ET Speaker4Thank you for standing by. My name is Rebecca, and I'll be your conference operator today. At this time, I would like to welcome everyone to the DigitalOcean third quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed b ...

Earnings Presentation Q3 2025 November 5, 2025 2025 DigitalOcean. All rights reserved 1 Safe Harbor The statements in the presentation regarding our financial outlook are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results or outcomes to be materially different from any f ...