DigitalOcean

DigitalOcean reported adjusted EPS of $0.45 for Q2 2026 (expectation $0.25) and revenue of $281.18 million, up 29% year-over-year. Net new ARR reached a quarterly record of $93 million, AI-customer ARR rose to $234 million (+212%), and adjusted EBITDA margin was 40%. Management raised the full-year revenue outlook to about 30% and reiterated the goal of achieving over 50% growth in 2027. Despite the strong metrics, the stock fell 7.85% in premarket trading, as investors appeared to place greater weight on valuation and sustainability questions around the growth. » More on de.investing.com

DigitalOcean repurchased convertible senior notes (due 2030) with a value of about $472 million and issued approximately 12.5 million common shares at $117.54 per share in a registered direct placement. About 96% of the shares issued were used to retire the notes and 4% covered the premium paid to noteholders; roughly 500,000 shares are planned to be repurchased to offset dilution. After the transaction, about $153 million in convertible notes remain outstanding. The financing came from the net proceeds of the placement and cash on hand. The CFO said the move strengthens the balance sheet and creates room for further growth while maintaining the company’s leverage level. » More on de.investing.com

Alger Weatherbie Specialized Growth Fund named DigitalOcean Holdings as a key holding, citing the company's developer-friendly cloud platform and positioning for inference and agentic AI workloads. DigitalOcean reported Q1 2026 revenue of $258 million, up 22% year‑over‑year, delivered strong operating results and raised its revenue outlook for 2026 and 2027. The fund said accelerating AI-related customer demand and improving fundamentals supported the stock's sharp gains despite a recent one-month pullback. » More on finance.yahoo.com