DigitalOcean reports Q3 EPS 54c, consensus 49c

Reports Q3 revenue $229.63M, consensus $226.58M. “DigitalOcean’s (DOCN) unified agentic cloud is driving accelerated momentum in Q3. Revenue increased 16% year over year and we delivered the strongest incremental organic ARR in our history,” said Paddy Srinivasan, CEO of DigitalOcean. “Our unified agentic cloud platform is emerging as a preferred destination for AI and digital native enterprises building and scaling AI workloads. The combination of rapid product innovation and continued go-to-market execution is driving durable, high-quality growth across our customer base. We are getting material traction with larger digital native enterprises, as our customers with greater than $100,000 in annual run-rate grew revenue 41% year over year, and represent 26% of total revenue, and our $1 million plus run-rate customers by themselves are over $100 million in ARR growing at 72%. Direct AI revenue more than doubled year over year for the fifth consecutive quarter. With healthy adjusted free cash flow margins, a strengthened balance sheet following the refinancing of our 2026 convertible notes, and continued operational discipline, we are raising both our 2025 revenue and adjusted free cash flow margin guidance. Our momentum gives us confidence to increase investment to deliver our 2027 18-20% growth targets a full year earlier in 2026.”