Datadog (NASDAQ:DDOG) Issues Q4 2025 Earnings Guidance

Datadog (NASDAQ:DDOG) issued an update on its fourth quarter 2025 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 0.54-0.56 for the period, compared to the consensus estimate of 0.300. The company issued revenue guidance of $912.0 million-$916.0 million, compared to the consensus revenue estimate of $884.1 million. Datadog also updated its FY 2025 guidance to 2.000-2.020 EPS.

Analyst Ratings Changes

Several brokerages recently weighed in on DDOG. DA Davidson increased their target price on shares of Datadog from $170.00 to $180.00 and gave the stock a “buy” rating in a research report on Friday, October 3rd. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Datadog in a report on Wednesday, October 8th. Rosenblatt Securities set a $200.00 price target on Datadog in a research report on Thursday. Stifel Nicolaus set a $205.00 price target on shares of Datadog in a research note on Thursday. Finally, Barclays set a $170.00 price objective on Datadog and gave the company an “overweight” rating in a research note on Thursday, August 7th. Twenty-seven analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $174.25.

Datadog Trading Up 23.1%

Shares of DDOG traded up $35.84 during trading hours on Thursday, hitting $190.82. 21,294,620 shares of the stock traded hands, compared to its average volume of 3,315,387. The company has a current ratio of 3.43, a quick ratio of 3.43 and a debt-to-equity ratio of 0.31. Datadog has a 1-year low of $81.63 and a 1-year high of $194.87. The firm has a market capitalization of $66.55 billion, a PE ratio of 545.22, a price-to-earnings-growth ratio of 60.64 and a beta of 1.20. The business has a fifty day moving average of $147.78 and a 200-day moving average of $133.51.

Datadog (NASDAQ:DDOG) last issued its quarterly earnings results on Thursday, November 6th. The company reported $0.55 EPS for the quarter, topping the consensus estimate of $0.45 by $0.10. Datadog had a net margin of 4.13% and a return on equity of 5.04%. The company had revenue of $885.65 million during the quarter, compared to analysts’ expectations of $852.77 million. During the same quarter in the previous year, the company earned $0.46 EPS. Datadog’s revenue was up 28.4% on a year-over-year basis. Datadog has set its FY 2025 guidance at 2.000-2.020 EPS. Q4 2025 guidance at 0.54-0.56 EPS. Analysts expect that Datadog will post 0.34 EPS for the current year.

Insider Buying and Selling

In related news, Director Michael James Callahan sold 8,333 shares of the stock in a transaction on Tuesday, October 14th. The stock was sold at an average price of $160.55, for a total value of $1,337,863.15. Following the sale, the director owned 12,496 shares in the company, valued at approximately $2,006,232.80. This represents a 40.01% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Shardul Shah sold 7,916 shares of Datadog stock in a transaction dated Monday, October 13th. The stock was sold at an average price of $162.58, for a total transaction of $1,286,983.28. Following the completion of the sale, the director owned 364,449 shares of the company’s stock, valued at $59,252,118.42. This trade represents a 2.13% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 1,512,446 shares of company stock valued at $207,641,627. 8.70% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in DDOG. AQR Capital Management LLC grew its holdings in Datadog by 99.8% in the 2nd quarter. AQR Capital Management LLC now owns 1,847,722 shares of the company’s stock worth $247,983,000 after acquiring an additional 923,038 shares during the last quarter. Ameriprise Financial Inc. boosted its stake in shares of Datadog by 57.7% during the 2nd quarter. Ameriprise Financial Inc. now owns 1,769,943 shares of the company’s stock worth $237,758,000 after acquiring an additional 647,623 shares during the last quarter. Canada Pension Plan Investment Board grew its stake in Datadog by 116.5% during the second quarter. Canada Pension Plan Investment Board now owns 596,115 shares of the company’s stock valued at $80,076,000 after acquiring an additional 320,774 shares in the last quarter. Alliancebernstein L.P. increased its stake in Datadog by 204.4% during the second quarter. Alliancebernstein L.P. now owns 335,860 shares of the company’s stock worth $45,116,000 after acquiring an additional 225,532 shares during the last quarter. Finally, Quantinno Capital Management LP grew its holdings in Datadog by 193.2% during the 2nd quarter. Quantinno Capital Management LP now owns 184,376 shares of the company’s stock valued at $24,767,000 after purchasing an additional 121,488 shares during the last quarter. 78.29% of the stock is owned by institutional investors.

Datadog Company Profile

Datadog, Inc operates an observability and security platform for cloud applications in North America and internationally. The company's products comprise infrastructure and application performance monitoring, log management, digital experience monitoring, continuous profiler, database monitoring, data streams and universal service monitoring, network monitoring, incident management, workflow automation, observability pipelines, cloud cost and cloud security management, application security management, cloud SIEM, sensitive data scanner, and CI visibility.