DigitalOcean Holdings, Inc. (DOCN) Stock Analysis 2026

TechnologySoftware - Infrastructure

BriMind AI Score

Proprietary
48
Neutral
Price CAGR
15.1%
1Y Return
+136.3%
Analyst Upside
+87.9%
Rev Growth
28.6%

Score based on historical price CAGR, revenue growth, analyst upside, and valuation factors. Updated daily.

AI scores and price targets are for informational and educational purposes only. They do not constitute financial advice or a recommendation to buy or sell any security. Past performance is not indicative of future results. Always conduct your own research before making investment decisions. Full Disclaimer →

DOCN Revenue & Profitability Breakdown

This chart shows how DOCN's revenue flows through to profit. Each row deducts a layer of costs: first the direct cost of making products/services (Cost of Revenue), then operating expenses like marketing and R&D, then taxes. What remains at the bottom is net income — the actual profit shareholders own. High gross and net margins indicate a business with strong pricing power and efficiency.

Revenue
$1.01B
Cost of Revenue
-$432.5M
Gross Profit
$578.6M57.2% margin
Operating Expenses
-$473.0M
Operating Income
$105.6M10.4% margin
Net Income
$235.2M23.3% margin
Gross Margin
57.2%
Operating Margin
10.4%
Net Margin
23.3%

Key Financial Metrics

DigitalOcean Holdings, Inc. trades at a trailing P/E of 47.05x, generates $-23.8M in free cash flow, runs a debt/equity ratio of 212.51, and converts shareholder equity into profit at a 62.3% return on equity. For context: P/E ratio measures how much you pay for $1 of earnings (lower = cheaper, but fast-growing companies command higher P/E); Free Cash Flow is the cash left after running the business; Debt/Equity shows how leveraged a company is; Return on Equity shows how efficiently it turns shareholder capital into profit.

Market Cap
$12.17B
P/E (Trailing)
47.05
P/E (Forward)
56.20
PEG Ratio
1.54
Price / Book
11.68
Revenue
$1.01B
Revenue Growth
28.6%
Earnings Growth
-24.5%
EPS (Trailing)
$2.20
EPS (Forward)
$1.84
Gross Margin
57.2%
Operating Margin
10.4%
Net Margin
23.3%
Return on Equity
62.3%
Return on Assets
3.9%
Free Cash Flow
$-23.8M
Debt / Equity
212.51
Current Ratio
1.31
Quick Ratio
1.14
Beta
1.59
Dividend Yield
None
Payout Ratio
0.0%
Insider Ownership
16.7%
Inst. Ownership
82.6%
Short % Float
8.7%
Book Value / Share
$8.86

Wall Street Analyst Consensus

Wall Street analysts covering DigitalOcean Holdings, Inc. currently haven't converged on a clear consensus rating, with a mean 12-month price target of $175.20. Analysts set these targets after researching a company's earnings, competitive position, and industry trends — Strong Buy / Buy means the majority expect meaningful upside, while Hold means fair value near the current price rather than a sell signal.

Mean Target$175.20

Intrinsic Value Estimates for DOCN

We use 3 valuation models to estimate DOCN's intrinsic value. Intrinsic value is what a stock is truly worth based on the company's fundamentals, independent of what the market prices it at today. If multiple models agree the stock is undervalued, that convergence is a stronger signal.

Technical Price Signals

DOCN is currently in a mixed technical position. Moving averages smooth out day-to-day volatility to reveal the underlying trend — a Golden Cross (50MA crosses above 200MA) is a classic bullish signal, a Death Cross is bearish, though both are lagging indicators that confirm trends rather than predict them.

50-Day MA
$127.19
200-Day MA
$96.15
Read the full DOCN in-depth report
Seven-method valuation, AI Score, blended price target, and a 5-year Monte Carlo simulation for DOCN.

Compare DOCN with Peers

DOCN vs NETDigitalOcean vs Cloudflare — SMB Cloud vs Enterprise Ed
DOCN vs FSLYDigitalOcean vs Fastly — Which Developer Cloud Stock Wi
DOCN vs DDOGDigitalOcean vs Datadog — Cloud Infra vs Observability
DOCN vs AKAMDigitalOcean vs Akamai — Challenger Cloud vs Legacy CDN

Further Reading

Research and guides that put DOCN’s numbers in context — how to read the filings behind them, and the frameworks we use to score them.

Risk ManagementHow to Build Your First Investment Portfolio: Risk Tolerance, Asset Allocation & Your First 5 FundsFundamentalsWarren Buffett Retired 2026: Berkshire Portfolio Under Greg AbelBeginnerWhat Is an AI Stock Score? How BriMindInvest Ranks StocksMarket TheoryStock Market Seasonality: Monthly Returns, 'Sell in May,' and What History Says

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Data sources: Financial metrics and market data sourced from company SEC filings, earnings releases, and investor relations disclosures. Price data, analyst consensus targets, and fundamental financials provided by financial market data providers. ETF data sourced from official fund prospectuses and index provider publications. AI scores and price targets are proprietary estimates — see our Methodology and Disclaimer for details.
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