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DigitalOcean Highlights AI Surge After 2025 Results as Investments Pinch Margins

Heavier data-center and GPU spending is set to weigh on near-term profit.

Overview

  • Revenue reached $901 million in 2025, up 15% year over year, following the Feb. 24 results release.
  • Management projects revenue growth of 21% in 2026 and 30% in 2027.
  • AI-specific annual run-rate rose 150% to $120 million, outpacing overall ARR growth of 18% to $970 million.
  • ARR tied to AI inference services jumped 254% in the quarter, signaling accelerating product adoption.
  • Analysts cut 2026–2027 earnings estimates in response to planned infrastructure spending, though forecasts still point to longer-term earnings expansion.