DigitalOcean Raises Revenue Outlook Driven by AI Platform Adoption and Software Yield
During its third-quarter 2026 earnings call, DigitalOcean (DOCN) raised its revenue guidance for both the full year 2026 and 2027. The company is seeing accelerated top-line growth driven by customers adopting its complete AI cloud platform rather than just standalone GPU capacity. Notably, 90% of AI customer revenue is derived from users who also consume core cloud services. DigitalOcean is focusing on increasing revenue yield per megawatt through software innovation and high-margin services, which allows for profitability expansion without solely relying on physical infrastructure growth. Supported by a disciplined balance sheet and low net leverage, the company aims to maintain strategic flexibility to fund capital expenditures and next-generation hardware as computing demand rises.