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NEW YORK — DigitalOcean Holdings Inc. (NYSE: DOCN) shares exploded more than 35% Tuesday morning, surging to around $147.61 after the cloud infrastructure company reported blockbuster first-quarter 2026 results that far exceeded Wall Street expectations and highlighted accelerating AI-driven growth.

The stock, which closed Monday at roughly $108, jumped as much as 38.55% intraday on heavy volume as investors cheered record revenue, strong customer expansion and upbeat guidance tied to its expanding “agentic inference cloud” platform. The move added billions to the company’s market capitalization in a single session.

DigitalOcean reported first-quarter revenue of $257.9 million, up 22% year-over-year and well above analyst estimates of approximately $249.8 million. Non-GAAP earnings per share reached $0.44, crushing consensus forecasts of $0.27. The company also posted robust growth in key metrics, including million-dollar customer ARR surging 179% and AI customer ARR jumping 221%.

AI and Inference Cloud Driving Surge

Management highlighted strong traction in its AI-native offerings, including the recently launched Inference Engine. The company noted that AI workloads are becoming a significant growth driver, with customers reporting substantial cost savings and performance improvements compared to larger cloud providers.

Annual run-rate revenue reached $1.032 billion, up 22% year-over-year. Net income attributable to common stockholders stood at $16 million. Executives expressed confidence in continued momentum, citing demand from startups and enterprises building AI applications on the platform.

Raised Guidance Fuels Optimism

DigitalOcean also provided optimistic forward-looking commentary, reinforcing investor enthusiasm. The strong beat and positive tone on AI opportunities triggered widespread analyst upgrades and price target increases in recent weeks, setting the stage for Tuesday’s breakout.

Company Transformation and Strategy

DigitalOcean has evolved from a developer-friendly VPS provider into a specialized cloud platform focused on simplicity, affordability and high-performance AI inference. Its agentic inference cloud targets workloads that require fast, cost-effective model deployment — a sweet spot as AI adoption accelerates among smaller companies and startups.

The company operates a global network optimized for low-latency applications and has been winning business from customers seeking alternatives to hyperscale providers like AWS, Azure and Google Cloud. Recent product launches and acquisitions have strengthened its position in the fast-growing inference market.

Analyst and Market Reaction

Wall Street responded positively to the results. Multiple firms raised price targets following the report, with several highlighting DigitalOcean’s ability to capture AI market share while maintaining disciplined growth. The stock’s dramatic move reflects both the earnings surprise and broader enthusiasm for AI infrastructure plays.

Volume surged as retail and institutional investors piled in. The rally marks one of the largest single-day percentage gains for the stock in recent memory and pushes it to fresh all-time highs.

Valuation and Outlook

Even after today’s surge, analysts see further upside potential given the company’s growth trajectory. However, the rapid move also raises questions about near-term valuation and the risk of profit-taking. DigitalOcean trades at a premium multiple, reflecting expectations of sustained high growth in the AI cloud sector.

For the remainder of 2026, the company expects continued expansion in its core business and AI offerings. Investors will watch upcoming quarters for evidence of sustained momentum and margin trends as the company invests in capacity.

Broader Context

DigitalOcean’s performance comes amid a strong period for select cloud and AI infrastructure names. While larger hyperscalers dominate headlines, smaller, specialized providers like DigitalOcean are carving out niches with better economics for certain workloads. Tuesday’s reaction underscores investor appetite for companies delivering tangible AI growth.

As the earnings season progresses, DigitalOcean’s results provide a positive data point for the broader technology sector. The company’s focus on developer experience and cost efficiency continues to resonate in a market seeking practical AI solutions.

The stock’s explosive move on Tuesday highlights the market’s reward for companies that execute well in high-growth areas. Whether this momentum sustains will depend on future delivery, but the Q1 report has clearly energized investors and reaffirmed DigitalOcean’s position as a rising player in the cloud and AI infrastructure landscape.

U.S. stocks moved lower in premarket trading Monday, challenging last week’s record run for the S&P 500 that powered by the best pace of earnings gains in five years, amid reports from Iran’s Fars news agency that two Iranian missiles struck a U.S. warship near Jask Island near the Strait of Hormuz.

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The crux of Brockman’s testimony so far has been that Musk was aware of plans to shift OpenAI to be more of a traditional for-profit business. When the company started, it was a non-profit, then it added a for-profit arm in order to raise billions of dollars in funding for investors, before deciding last year to make the for-profit part of the company the focus.

NEW YORK — Utz Quality Foods LLC is voluntarily recalling certain varieties of its popular Zapp’s and Dirty brand potato chips due to potential Salmonella contamination in a seasoning ingredient, the U.S. Food and Drug Administration announced Monday, urging consumers to check their pantries and return or discard affected products.

The recall, issued out of an abundance of caution, affects limited batches of chips sold nationwide. It stems from notification that a third-party seasoning containing dry milk powder, sourced from California Dairies Inc., may contain Salmonella. Although the affected seasoning batches tested negative for the bacteria before use, Utz initiated the voluntary action to prioritize consumer safety.

No illnesses have been reported in connection with the recalled chips as of Tuesday. Salmonella can cause serious and sometimes fatal infections, particularly in young children, the elderly, pregnant people and those with weakened immune systems. Healthy individuals may experience fever, diarrhea, nausea, vomiting and abdominal pain.

Affected Products and Distribution

The recall includes specific sizes and flavors of Zapp’s and Dirty potato chips with particular best-by dates and batch codes. Examples include various Zapp’s Bayou Blackened Ranch, Dirty varieties and other flavored options in bags ranging from 1.5 ounces to 8 ounces. Full details, including UPC codes, best-by dates and batch information, are available on the FDA’s website.

The products were distributed through retail stores across the United States. Consumers who purchased the items should stop eating them immediately, dispose of them safely or return them to the place of purchase for a refund. Retailers have been instructed to remove the products from shelves.

Company Response and Consumer Advice

Utz Quality Foods emphasized that consumer safety is its top priority. “We are recalling these products out of an abundance of caution,” the company stated. No other Utz products are affected. The company is working closely with the FDA and suppliers to investigate the issue and prevent future occurrences.

The FDA advises anyone who has consumed the recalled chips and experiences symptoms of Salmonella infection to contact their healthcare provider. Symptoms typically appear six hours to six days after exposure and can last four to seven days in most cases. Severe cases may require hospitalization.

Broader Context of Food Safety

This recall highlights ongoing challenges in the snack food supply chain, particularly with ingredients like dry milk powder that can harbor bacteria if not properly handled. Salmonella outbreaks linked to processed foods have occurred periodically, prompting heightened vigilance from manufacturers and regulators.

The FDA classifies recalls based on risk levels. While this action is precautionary, officials stress the importance of checking product labels and staying informed through official channels. Consumers can visit the FDA’s recalls page or sign up for alerts to receive timely notifications.

Impact on Consumers and Industry

Popular snack brands like Zapp’s, known for bold Cajun-inspired flavors, and Dirty, recognized for its kettle-cooked varieties, enjoy loyal followings across the South and beyond. The recall may temporarily disrupt availability, but Utz has assured the public that unaffected products remain safe and widely available.

Industry experts note that voluntary recalls demonstrate responsible corporate practices, even when test results are negative. Such actions help maintain consumer trust in the food supply while underscoring the complexity of modern manufacturing with multiple suppliers.

What Consumers Should Do

Check your pantry for any Zapp’s or Dirty potato chips purchased recently. Compare UPC codes, best-by dates and batch information against the FDA’s detailed list. If in doubt, throw it out. Wash hands thoroughly after handling potentially affected products and sanitize any surfaces they contacted.

For questions, contact Utz Consumer Relations or consult the FDA recall notice. Retailers participating in the recall will handle returns smoothly, minimizing inconvenience for shoppers.

Preventing Future Risks

Food safety advocates encourage consumers to stay informed and practice safe handling. Proper storage, checking expiration dates and following recall notices contribute to reducing foodborne illness risks. The incident also reinforces the value of robust supplier oversight and testing protocols in the snack industry.

As investigations continue, the FDA and Utz will provide updates if additional products or details emerge. For now, the focus remains on protecting public health through swift action and transparent communication.

This precautionary recall serves as a reminder of the vigilance required in food production. While no illnesses have been linked, consumers are urged to err on the side of caution with the specified products. The snack industry’s quick response helps preserve confidence while addressing potential risks promptly.

New Delhi: Appellate tribunal NCLAT on Tuesday set aside a Rs 301.6-crore penalty imposed on the Grasim Industries by CCI, directing the fair trade regulator to hear the Aditya Birla Group firm again over its alleged dominance in the viscose staple fibre (VSF) market.

The tribunal observed that the CCI did not provide a chance to Grasim Industries to present their arguments, after it differed from the findings of DG, its probe Unit.

The Competition Commission of India (CCI) had imposed a penalty on Grasim Industries in March 2020 for allegedly abusing its dominant position with respect to supply of VSF to spinners in India in which it has a dominant position.

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The order was challenged by Grasim before the NCLAT, which is also an appellate authority over CCI, which asked the regulator to hear afresh.

A two-member National Company Law Appellate Tribunal (NCLAT) bench said the CCI itself has “differed from findings of the DG”, its probe unit, regarding their directions for disclosure of discounting/pricing policy and sale to “buyers” who can trade the VSF.
In such cases, where is a difference between CCI and DG, it “requires the Commission to give opportunity to the opposite party (Grasim)”, said the NCLAT while citing previous judgments.NCLAT said CCI “had omitted to give notice” to the Grasim Industries regarding the disagreement and has thereby “deprived” the Aditya Birla Group firm “an opportunity to defend itself” against the proposed actions.

“We set aside the impugned order and remand it back to the Commission with a direction to provide an opportunity to the Appellant wherever the Commission differs with the findings of the DG and to decide the case expeditiously in a time-bound manner,” NCLAT said.

The NCLAT also made it clear that it has “not commented on the merits of the case” while passing the order, the CCI “should not be influenced by anything contained in this judgement”.

CCI in its order had said it had abused its dominant position in the market for supply of VSF to spinners in India by charging discriminatory prices to its customers, besides imposing supplementary obligations upon them.

The CCI has directed the company to “refrain from adopting unfair/discriminatory pricing practices and also refrain from seeking the consumption details of VSF from the buyers”.

Further, the watchdog had asked Grasim Industries to put in place a discount policy, which is transparent and non-discriminatory to all market participants, and to make it easily and publicly accessible/available.

A complaint alleging unfair business practices was filed against Association of Man Made Fibre Industry of India, Grasim Industries, Thai Rayon, and Indo Bharat Rayon. The three companies are part of the Aditya Birla Group.

VSF is a versatile, biodegradable, cellulosic fiber used widely in fashion apparel, home textiles, and non-woven hygiene products.

Known for its soft texture, high absorbency, and excellent drape, VSF is often blended with cotton, polyester, or linen to enhance comfort, durability, and fabric quality.

Poonawalla Fincorp reported a strong March quarter performance, with profit rising sharply on sequential improvement in margins, higher lending income and stable asset quality. The non-banking finance company on Tuesday reported a profit after tax of Rs 255 crore for the quarter ended March 2026, compared with Rs 150 crore in the December quarter, marking a 70% sequential jump.

Assets under management crossed the Rs 60,000 crore milestone and stood at Rs 60,348 crore at the end of March, the company said in its audited quarterly results.

Net interest income, including fees and other income, rose 78% YoY to Rs 1,276 crore during the quarter.
Pre-provision operating profit came in at Rs 695 crore, up 109% YoY, reflecting stronger operating leverage and higher business volumes.Net interest margin, including fees and other income, improved to 9.05% in the March quarter from 8.62% in the December quarter, an expansion of 43 basis points sequentially. The lender also reported improvement in asset quality.

Gross non-performing assets stood at 1.44% at the end of March, compared with 1.51% in the previous quarter. Net non-performing assets improved to 0.74% from 0.80% in the December quarter.
Credit cost as a percentage of average AUM eased to 2.51% in the March quarter from 2.62% in the previous quarter. Stage 1 assets, which represent the healthiest portion of the loan book, stood at 97.5% of on-book assets compared with 97.4% in the previous quarter.
The company said its secured-to-unsecured on-book mix stood at 54:46 during the quarter. Capital adequacy ratio stood at 16.83% as of March 31, with Tier-I capital at 15.90%, both above regulatory requirements.
Following its recently completed Rs 2,500 crore qualified institutional placement, the company said its simulated capital adequacy ratio would rise to 20.74% based on the March balance sheet, giving it additional headroom for growth.

Liquidity buffer stood at Rs 7,590 crore as of March 2026. Cost of borrowing declined marginally to 7.63%, lower by 2 basis points compared with the previous quarter.

Commenting on the results, Managing Director and CEO Arvind Kapil said the company had reached an “inflection point” in its growth journey. “We have reached a pivotal inflection point in our growth trajectory. By simultaneously expanding our yields and optimizing our operating architecture, we are seeing a powerful expansion in incremental NIMs,” he said.

Poonawalla Fincorp said it continued to invest in technology, adding 19 new AI projects during the quarter, taking the total number of AI-led initiatives to 76, of which 42 have already been implemented.