DOCN DigitalOcean (DOCN) Q2 FY26 earnings call
DigitalOcean delivered an exceptional quarter, significantly accelerating revenue growth driven by strong traction in its AI native cloud and inference engine. The company is successfully attracting and expanding relationships with high-spending AI customers, leading to record incremental ARR and robust profitability. Management remains focused on disciplined execution, capacity expansion, and strengthening its balance sheet, raising its full-year 2026 outlook and expressing increased confidence in 2027 growth targets.
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DOCN operating KPIs by quarter
| KPI | Dec 2025 Q4 FY25 | Mar 2026 Q1 FY26 | This call Jun 2026 Q2 FY26 | Change vs prior quarter |
|---|---|---|---|---|
| Annual recurring revenue (ARR) Customers spending over $1M | $133MOur $1 million-dollar customers reached $133 million in ARR, growing at 123% year-over-year.Source: earnings call transcript | $183MQ1 revenue was $258 million up 22% year-over-year, with million dollar plus customers growing 179% year-over-year to $183 million in ARR.Source: earnings call transcript | — | +37.6% |
| Annual recurring revenue (ARR) AI customers | $120MAnd these customers are growing rapidly with Q4 AI customer ARR reaching $120 million, growing 150% year-over-year, now making up 12% of total ARR.Source: earnings call transcript | $170MAI customer ARR grew 221% to $170 million, and we beat every financial target we shared in our last call.Source: earnings call transcript | $234MAI customer ARR reached $234 million, growing over 200% year-over-year.Source: earnings call transcript | +37.6% |
| Remaining performance obligation (RPO) | $134MWe also continue to improve visibility on our near-term revenue growth as we increased RPO in Q4 to $134 million, up 121% sequentially and up close to 500% year-over-year.Source: earnings call transcript | $243M[ RPO ] reached $243 million, up an extraordinary 1,700% year-over-year.Source: earnings call transcript | $894MThis traction is evident in the material commitments we secured during the quarter which collectively increased remaining performance obligations to $894 million, up more than 12x year-over-year with a 3.7-year average life.Source: earnings call transcript | +267.9% |
| Data centers | — | 20We operate a global scale infrastructure with 20 data centers purpose built for AI workloads running a full stack core computing platform with a complete set of computing primitive that Agentic workloads demand.Source: earnings call transcript | 20Every turn adds products to the stack we own, an integrated platform running on our own infrastructure, spanning 20 global data centers, owning the stack lowers our cost to serve and that lower cost structure combined with the emergence of high-quality, low-cost open weight models gives us better unit economics to serve our customers, which in turn enables us to win more customers.Source: earnings call transcript | 0% |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
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