By Elias Schisgall

Shares of DigitalOcean Holdings rose as growing artificial-intelligence demand for cloud computing boosted the cloud-infrastructure company's fourth-quarter results beyond Wall Street expectations.

The stock was up 10%, at $65.21, midday Tuesday and has gained about 75% in the past 12 months.

The company on Tuesday logged a profit of $25.7 million, or 24 cents a share, compared with a profit of $18.3 million, or 19 cents a share, a year earlier.

Stripping out certain one-time items, the company reported earnings of 44 cents a share. Analysts surveyed by FactSet were expecting 38 cents a share.

Revenue rose to $242.4 million, up from $204.9 million a year prior. Analysts were expecting $237.7 million in revenue.

"AI is reshaping entire industries, and we are built for this shift. DigitalOcean's Agentic Inference Cloud is gaining further traction with large Cloud and AI Native customers that are driving the shift, which is evident in our strong Q4 performance and our increased outlook for 2026 and 2027," Chief Executive Paddy Srinivasan said.

For the current first quarter, the Broomfield, Colo., company is expecting revenue between $249 million and $250 million, with adjusted earnings of 22 cents to 27 cents a share.

Analysts are expecting 45 cents a share in adjusted earnings and $248.3 million in revenue.

DigitalOcean is forecasting full-year revenue between $1.08 billion and $1.11 billion, with adjusted earnings between 75 cents and $1.00 a share.

Analysts are looking for adjusted earnings of $1.96 a share and $1.07 billion in revenue for the year.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

February 24, 2026 12:58 ET (17:58 GMT)

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