DigitalOcean Holdings (DOCN) Earnings: Q3 2026 Results

The quarter ended September 30, 2026 and DigitalOcean published the results on November 3, 2026. Revenue and diluted EPS are shown against Q3 2025, the same quarter a year earlier, which takes seasonal swings out of the comparison. DigitalOcean reports EPS two ways: GAAP, under the accounting rules every US filer follows, and non-GAAP, which leaves out items the company considers outside its operating results. The release reconciles the two, and when they diverge, the reconciliation says why.

• The Q3 2026 GAAP net loss includes a $57 million induced conversion expense from the partial repurchase of DigitalOcean's 2030 Convertible Notes. Year-ago GAAP EPS of $1.51 included a $48.4 million gain on extinguishment of debt and a $68.1 million income tax benefit.
• DigitalOcean reports one segment. The rows above are revenue by geography from the 10-Q. Its RPO now covers all contracts regardless of term, and its customer categories were redefined in Q4 2025, with prior periods recast.

Source: DigitalOcean Q3 2026 results, November 3, 2026. Also in the Form 10-Q for the quarter ended September 30, 2026. Figures as reported; checked against the release on November 10, 2026.

How DigitalOcean splits revenue in its own release, under its own labels, for Q3 2026 against Q3 2025. Indented lines are parts of the line above them.

• DigitalOcean's North America revenue was $157 million in Q3 2026, up 73% from $91.2 million in Q3 2025, 49% of total revenue.
• DigitalOcean's Europe revenue was $63.5 million in Q3 2026, up 3% from $61.9 million in Q3 2025, 20% of total revenue.
• DigitalOcean's Asia revenue was $72.6 million in Q3 2026, up 39% from $52.3 million in Q3 2025, 23% of total revenue.
• DigitalOcean's Rest of the world revenue was $27.6 million in Q3 2026, up 14% from $24.2 million in Q3 2025, 9% of total revenue.

Segment lines are the figures writers cite most often, because they show where the growth in a quarter came from. Companies redraw their segments from time to time and restate the prior year to match, so a year-ago figure here can differ from the one printed a year ago. When that has happened, the note above says so.

From the earnings release

The first two quotes are DigitalOcean's outlook for the fourth quarter of 2026; the last two are for full year 2026.

In its Q3 2026 release, DigitalOcean said:

“Total revenue of $348 to $351 million, up 44% to 45% year-over-year.”

“Non-GAAP diluted net income per share of $0.30 to $0.32.”

“Total revenue of $1.208 to $1.211 billion, up approximately 34% year-over-year.”

“Adjusted free cash flow margin in the range of 20% to 22% of revenue.”

Source: DigitalOcean Q3 2026 release, Nov 3, 2026.

This is the company's own guidance as of Nov 3, 2026, quoted as given. Walnut does not make forecasts of its own. Analyst estimates for the coming quarters are on the DOCN forecast page.

Revenue and diluted EPS for the last 5 quarters. Each date links to that quarter's release.

GAAP revenue and diluted EPS, each as first reported in that quarter's release. Q3 2025 EPS includes a debt extinguishment gain and a tax benefit.

We do not hold a confirmed date for DigitalOcean's next report. Companies post the date on their investor relations site a few weeks ahead, usually with the time of the conference call.

Each quarter keeps its own page with the figures as reported, so a link to one stays pointed at the same numbers after the next report.

• Q3 2026 (this page), reported Nov 3, 2026

DigitalOcean had revenue of $321 million in Q3 2026, up 40% from a year earlier, which it called its fifth consecutive quarter of accelerating year-over-year growth. Annual run-rate revenue (ARR) ended the quarter at $1,285 million, and DigitalOcean added a record $160 million of ARR in the quarter. AI Customer ARR was $376 million, up 288%. (DigitalOcean Q3 2026 release (8-K Exhibit 99.1), Nov 3, 2026)

DigitalOcean generates revenue primarily from customer usage of its cloud platform, and its pricing is primarily consumption-based, with most customers on a month-to-month basis. A growing number of larger customers sign committed contracts with a minimum spend. Its 10-Q says the quarter's increase was driven by a 61% increase in revenue from DNE Customers (those spending more than $500 in a month), mainly from new customers, including AI customers, and higher average usage by existing ones. (DigitalOcean Form 10-K, 2025, Feb 24, 2026; DigitalOcean Form 10-Q, Q3 2026, Nov 3, 2026)

Revenue is shifting toward bigger accounts. Customers spending $100K+ a year now represent 41% of DigitalOcean's revenue, and revenue from them grew 133%. The $1M+ customer count grew 96%, and those customers represent 30% of total revenue, with Million+ Dollar Customer ARR of $386 million. (DigitalOcean Q3 2026 release (8-K Exhibit 99.1), Nov 3, 2026)

North America produced $157.5 million, or 49% of Q3 revenue, up from 40% a year earlier, while Europe fell to 20% from 27%. Customers in the United States were 45% of revenue, against 34% in Q3 2025. Remaining performance obligation was $800 million, of which $345 million is expected to be recognized over the next 12 months, compared with $61 million of RPO in Q3 2025. (DigitalOcean Form 10-Q, Q3 2026, Nov 3, 2026; DigitalOcean Q3 2026 release (8-K Exhibit 99.1), Nov 3, 2026)

DigitalOcean reported a GAAP diluted net loss of $0.37 per share in Q3 2026 and non-GAAP diluted net income of $0.45 per share. The gap is mostly a $57.1 million induced conversion expense, $0.46 per share, from repurchasing about $472 million of its 2030 Convertible Notes, plus stock-based compensation of $36.0 million ($0.29 per share). The repurchase was funded by a concurrent registered direct offering. (DigitalOcean Q3 2026 release (8-K Exhibit 99.1), Nov 3, 2026)

The year-ago comparison is unusual. DigitalOcean's Q3 2025 GAAP EPS of $1.51 included a $48.4 million gain on extinguishment of debt and a $68.1 million income tax benefit, which its 10-Q attributes mainly to the release of the valuation allowance on U.S. and state deferred tax assets. Non-GAAP EPS fell to $0.45 from $0.54. (DigitalOcean Q3 2026 release (8-K Exhibit 99.1), Nov 3, 2026; DigitalOcean Form 10-Q, Q3 2026, Nov 3, 2026)

DigitalOcean computes non-GAAP net income with a fixed long-term tax rate of 16%. Its non-GAAP diluted share count was 123.4 million, which excludes the in-the-money portion of the 2030 Convertible Notes covered by its capped call transactions. GAAP diluted shares were 114.7 million because the loss made other securities anti-dilutive. (DigitalOcean Q3 2026 release (8-K Exhibit 99.1), Nov 3, 2026)

Diluted EPS divides net income by the weighted average number of shares outstanding in the quarter, plus the shares that options and other equity awards could add. Buybacks shrink that count and lift EPS for the same profit; share issuance and stock awards enlarge it.

DigitalOcean gives quarterly and full-year guidance in its release. For Q4 2026 it expects total revenue of $348 to $351 million, up 44% to 45%, an adjusted EBITDA margin of 42% to 43% and non-GAAP diluted EPS of $0.30 to $0.32. For full year 2026 it expects revenue of $1.208 to $1.211 billion, up about 34%, and non-GAAP diluted EPS of $1.60 to $1.62. (DigitalOcean Q3 2026 release (8-K Exhibit 99.1), Nov 3, 2026)

In the release headline DigitalOcean also raised its expected 2027 revenue growth to 60%+. It does not reconcile its non-GAAP outlook to GAAP, saying stock-based compensation and other items cannot be forecast without unreasonable effort. (DigitalOcean Q3 2026 release (8-K Exhibit 99.1), Nov 3, 2026)

A consensus figure is the average of the models published by the analysts who cover DigitalOcean, collected by a data provider and revised up to the day of the report. A quarter that lands above it says how expectations were set as much as how the business did, and the share price on the day also reflects the guidance and the lines no consensus covers.

The consensus figures on this page are Yahoo Finance's, as pulled on the date shown. Each comes with the number of analysts behind it; the smaller that number, the more one revised estimate can move the average.

The figures below are the ones DigitalOcean's own release and filings put weight on for Q3 2026, with the latest reported value for each.

What the quarter means for a holding is a separate question from what it reported. The case for and against owning DOCN is on is DOCN a buy or a sell?, what analysts expect next is on the DOCN forecast, and what the company does is on the DigitalOcean Holdings (DOCN) stock page.

Every number on this page can be traced to a document DigitalOcean published. Checking one takes a couple of minutes, and it is worth doing before you quote a figure anywhere.

• The results release is the document linked in the source line above. Companies publish it on their investor relations site at the moment results go out, and it carries the headline tables: revenue, operating income, net income and EPS for the quarter and the year-ago quarter.
• The same release is filed with the SEC as Exhibit 99.1 to a Form 8-K under Item 2.02, usually on the day of the report. The SEC copy does not change after the fact, which makes it the safer thing to link when you cite a number.
• The quarterly report (Form 10-Q) follows within a few weeks and carries the full financial statements, the segment note and management's discussion of what changed. The fourth quarter is covered by the annual report (Form 10-K) instead.
• Restated comparisons are flagged in the notes on this page. When a company redraws its segments or changes how it adjusts EPS, it restates the year-ago column, so the year-ago figure in a new release can differ from the one printed a year ago. This page always uses the comparison in the newer release, because that is the like-for-like one.

A walk-through of every line in a release, with what each one tells you, is in how to read an earnings report.