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StocksUpdated•Originally published 5 May 2026•Updated 7 May 2026•

1 min read

Goldman Sachs Raises DigitalOcean Target to $179 as Company Lifts FY2026 Guidance

Key Facts

1Piper Sandler raised DigitalOcean's price target to $155 from $98 while maintaining a Neutral rating.

2The company reported Q1 adjusted earnings of $0.44 per share, beating the consensus estimate of $0.27.

3Annual Recurring Revenue (ARR) from AI customers surged 221% year-over-year to $170 million.

Goldman Sachs has aggressively raised its price target for DigitalOcean (DOCN) to $179 from $78, maintaining a positive outlook on the stock. This revision follows a stellar performance fueled by a 221% surge in AI-related revenue, prompting the company to raise its fiscal year 2026 guidance. DigitalOcean now projects revenue between $1.13 billion and $1.14 billion, reflecting stronger-than-anticipated growth. Additionally, the company increased its adjusted earnings per share forecast to a range of $1.10 to $1.20. These upward revisions, following Piper Sandler's earlier target hike to $155, underscore growing market confidence in DigitalOcean's scaling capabilities. The updated guidance highlights the company's robust position in capturing niche cloud demand amid the global AI infrastructure boom.

27 days ago

Version History

2 additional sources confirmed this story

Version 127 days ago

What changed: Updated to include Goldman Sachs' price target hike to $179 and the company's upward revision of its fiscal 2026 revenue and earnings guidance.