by Duncan Riley
Shares of DigitalOcean Holdings Inc. rocketed more than 40% today after the developer-oriented cloud infrastructure provider topped Wall Street targets in its fiscal 2026 first quarter.
It also lifted its revenue outlook for both 2026 and 2027 on what it called accelerating demand for inference and agentic artificial intelligence workloads.
For the quarter that ended on March 31, DigitalOcean reported adjusted earnings per share of 44 cents, down from 56 cents per share in the same quarter of last year, on revenue of $258 million, up 22% year-over-year. Analysts had been expecting earnings of 26 cents per share and revenue of $249.68 million.
The headline numbers were overshadowed by the company’s artificial intelligence metrics. AI customer annual run-rate revenue jumped 221% from a year earlier, to $170 million, while annual recurring revenue from customers spending more than $1 million annually rose 179%, to $183 million.
