DigitalOcean Raises 2026 Revenue Forecast After AI Surge

DigitalOcean Holdings reported second-quarter 2026 revenue of $281 million, marking a 29% increase year-over-year. This growth was driven by the company's strategic pivot toward an AI-native cloud platform and a migration of its client base upmarket. AI customer annual recurring revenue grew 212% to $234 million, while inference services saw a 762% increase.

The company saw significant growth in its larger client base, with the customer segment spending over $1 million growing by 214%. Based on these results, DigitalOcean increased its full-year 2026 revenue guidance to between $1.17 billion and $1.18 billion and raised its non-GAAP diluted net income per share outlook.

To support this expansion, the company added new data center locations in Kansas City, Richmond, and Memphis. DigitalOcean also improved its financial position by repurchasing $472 million in convertible notes.