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DigitalOcean Jumps 18% After Raising 2025 Revenue Outlook and Margin Target

The move reflects raised revenue guidance alongside stronger margins despite a lower EPS forecast.

Overview

  • Net income attributable to shareholders surged 380% year over year to $158 million in Q3.
  • Quarterly revenue rose 15.7% to $229.6 million, with annual run-rate revenue up 16% to $919 million.
  • Full-year 2025 revenue guidance increased to $896 million to $897 million, and the adjusted EBITDA margin target was lifted to about 41%.
  • The company trimmed its full-year diluted EPS outlook to $2.00 to $2.05.
  • Management credited momentum in its unified agentic cloud for AI workloads; customers expected to generate over $100,000 in annual revenue grew 26% and their spending climbed 41%.