DigitalOcean Holdings, Inc. (DOCN) Q3 Earnings and Revenues Top Estimates

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]