DigitalOcean Shares Climb on AI-Driven Revenue Outlook

The cloud infrastructure provider expects second-quarter revenue to climb approximately 29% compared to the same period last year. Projections for remaining performance obligations are particularly striking, with the firm anticipating a figure exceeding $800 million—a ten-fold increase over the previous year. Management also indicated that current customer momentum positions the company for an accelerated revenue growth exit rate by 2026, while adjusted earnings per share are expected to reach or exceed the high end of previous guidance.

To accommodate the shift toward AI-based inference and cloud services, the company secured an additional 20 megawatts of data center capacity. Scheduled to come online between late 2027 and early 2028, this expansion brings the total committed capacity to 155 megawatts. This strategic move follows a quarter defined by multiple nine-figure annual commitments from customers seeking specialized compute resources.