DigitalOcean (DOCN) presented an updated growth outlook at the Goldman Sachs Communacopia + Technology Conference on Sept. 8, 2026. Chief Executive Paddy Srinivasan and Chief Financial Officer Matt Biilmann said the company’s AI‑focused services now drive the majority of its AI revenue, with roughly 85% coming from inference offerings such as token economics, reserved and spot instances, and the remainder from bare‑metal AI workloads.
The firm highlighted a core cloud gross margin of about 70%, the highest within its portfolio, and an overall gross profit margin of 57% over the past twelve months. Revenue growth guidance was lifted to more than 35% for 2024 and over 50% for full‑year 2027. The outlook reflects recent capacity additions, including 20 megawatts of incremental power and the early activation of three data centers.
DigitalOcean’s token‑based AI business, launched roughly 120 days before the conference, has attracted between 6,000 and 7,000 customers, contributing to a total client base of 680,000. GPU list prices have been raised by about 30%, and the company’s short‑term contract model allows daily or monthly price adjustments, avoiding long‑term lock‑ins.
Srinivasan emphasized a shift from “Cloud 1.0,” built for human‑managed applications, to a cloud designed for autonomous agents. He added that software is making megawatt capacity more valuable. Biilmann explained that token economics now focus on the quality of token allocation rather than simple GPU supply‑demand.
The firm targets a three‑year payback period for new data‑center investments. Analysts have responded positively, with 13 analysts raising earnings estimates following the briefing. DigitalOcean shares closed at $120.35, up 7.01% from the prior close of $112.47, within a 52‑week range of $33.08 to $187.50.
