Live News EQUITY H impact Jul 07, 2026, 01:04 PM UTC

DigitalOcean expects Q2 RPO to exceed $800M

DigitalOcean Holdings announced its continued customer traction with multiple nine-figure annual customer commitments for inference and cloud products added in the quarter. The Company's remaining performance obligations are expected to grow more than 10X from the second quarter of fiscal year 2025 to more than $800M, with weighted average life increasing from 1.6 years to over 3 years. In addition, the Company has also secured an incremental 20 MW of additional data center capacity that is expected to come online in late 2027 and early 2028, bringing DigitalOcean's total committed data center capacity to approximately 155 MW. The Company continues to actively pursue additional incremental capacity to support accelerating customer demand. For Q2 2026, the Company expects year over year revenue growth of approximately 29%, and projects to be at or above the top end of the range of its previously provided guidance for aEBITDA margin and non-GAAP Net Income per Share. The Company also expects this customer momentum to positively impact the previously provided guidance for exit 2026 revenue growth. The Company will provide more details in its upcoming earnings release.

DOCN

SQUAWKNEWS 1 updates Updated Jul 07, 2026, 01:06 PM UTC

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01:06:06 PM UTC

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Revenue growth expected to accelerate to 29%, up from 14% in same quarter 2025 RPO expected to increase by over $550M in Q2 2026 Expects Q2 aEBITDA margin and non-GAAP Net Income per Share at or above high end of guidance Signed an additional 20 MW of committed data center capacity for 2027/2028 Projects higher exit 2026 growth rate as demand for AI-Native Cloud continues to grow DigitalOcean Holdings, Inc. (NYSE: DOCN ), the AI-Native Cloud, purpose-built for inference and agentic workloads, today announced its continued customer traction with multiple nine-figure annual customer commitments for inference and cloud products added in the quarter. The Company’s remaining performance obligations (RPO) are expected to grow more than 10X from the second quarter of fiscal year 2025 to more than $800 million, with weighted average life increasing from 1.6 years to over 3 years.

DigitalOcean Holdings announced its continued customer traction with multiple nine-figure annual customer commitments for inference and cloud products added in the quarter.

The Company's remaining performance obligations are expected to grow more than 10X from the second quarter of fiscal year 2025 to more than $800M, with weighted average life increasing from 1.6 years to over 3 years.

In addition, the Company has also secured an incremental 20 MW of additional data center capacity that is expected to come online in late 2027 and early 2028, bringing DigitalOcean's total committed data center capacity to approximately 155 MW.

The Company continues to actively pursue additional incremental capacity to support accelerating customer demand.

For Q2 2026, the Company expects year over year revenue growth of approximately 29%, and projects to be at or above the top end of the range of its previously provided guidance for aEBITDA margin and non-GAAP Net Income per Share.

The Company also expects this customer momentum to positively impact the previously provided guidance for exit 2026 revenue growth.

The Company will provide more details in its upcoming earnings release.