DOCN · DigitalOcean Holdings, Inc.

DigitalOcean's pre-announcement for Q2 2026 highlights strong momentum driven by AI-Native Cloud demand. Revenue growth is expected to accelerate to ~29% YoY, up from 14% in the same quarter last year, indicating a significant inflection. The remaining performance obligations (RPO) are set to exceed $800M, representing a more than 10x increase from Q2 2025, with weighted average life extending from 1.6 to over 3 years. This suggests deepening customer commitments and longer-term visibility. Additionally, the company secured 20MW of incremental data center capacity for late 2027/early 2028, bringing total committed capacity to ~155MW, with further capacity pursuit ongoing. Management expects aEBITDA margin and non-GAAP EPS to land at or above the high end of prior guidance, signaling margin resilience alongside growth. CEO Paddy Srinivasan attributed wins to platform differentiation and total cost of ownership advantages. The press release did not disclose absolute revenue, net income, or balance sheet details, as full earnings will follow. The guidance implies positive revision potential for FY2026 exit growth rate. Overall, this pre-release signals robust demand for AI inference and agentic workloads, positioning DigitalOcean as a key beneficiary of AI infrastructure spending.