Scotiabank Has Bearish Forecast for Datadog FY2026 Earnings

Datadog, Inc. (NASDAQ:DDOG) – Research analysts at Scotiabank lowered their FY2026 earnings per share (EPS) estimates for Datadog in a research report issued to clients and investors on Wednesday, February 11th. Scotiabank analyst P. Colville now anticipates that the company will earn $0.31 per share for the year, down from their prior forecast of $0.33. Scotiabank currently has a “Sector Outperform” rating and a $160.00 price objective on the stock. The consensus estimate for Datadog’s current full-year earnings is $0.34 per share. Scotiabank also issued estimates for Datadog’s FY2027 earnings at $0.74 EPS.

Several other analysts have also recently issued reports on DDOG. KeyCorp reduced their price target on shares of Datadog from $170.00 to $155.00 and set an “overweight” rating on the stock in a research report on Wednesday, February 4th. Bank of America boosted their price objective on shares of Datadog from $180.00 to $215.00 and gave the stock a “buy” rating in a research report on Friday, November 7th. Barclays cut their price target on shares of Datadog from $195.00 to $165.00 and set an “overweight” rating on the stock in a research note on Wednesday. UBS Group set a $195.00 target price on Datadog in a research report on Monday. Finally, Mizuho decreased their target price on Datadog from $200.00 to $170.00 and set an “outperform” rating for the company in a research report on Wednesday, January 21st. Thirty-seven investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $179.50.

Datadog Stock Performance

NASDAQ:DDOG opened at $126.13 on Friday. The company’s 50-day moving average is $132.76 and its two-hundred day moving average is $143.82. The company has a debt-to-equity ratio of 0.26, a current ratio of 3.38 and a quick ratio of 3.66. The firm has a market capitalization of $44.23 billion, a price-to-earnings ratio of 406.87, a PEG ratio of 22.75 and a beta of 1.27. Datadog has a 1-year low of $81.63 and a 1-year high of $201.69.

Datadog (NASDAQ:DDOG) last posted its quarterly earnings data on Tuesday, February 10th. The company reported $0.59 EPS for the quarter, beating the consensus estimate of $0.55 by $0.04. The firm had revenue of $953.19 million during the quarter, compared to the consensus estimate of $916.53 million. Datadog had a return on equity of 4.14% and a net margin of 3.14%.The firm’s revenue was up 29.2% compared to the same quarter last year. During the same period in the prior year, the company earned $0.49 EPS. Datadog has set its FY 2026 guidance at 2.080-2.160 EPS and its Q1 2026 guidance at 0.490-0.510 EPS.

Hedge Funds Weigh In On Datadog

Large investors have recently modified their holdings of the stock. Brighton Jones LLC acquired a new position in Datadog in the fourth quarter worth $209,000. Bison Wealth LLC acquired a new position in shares of Datadog during the fourth quarter valued at $228,000. Empowered Funds LLC raised its stake in shares of Datadog by 7.0% during the first quarter. Empowered Funds LLC now owns 10,313 shares of the company’s stock valued at $1,023,000 after purchasing an additional 672 shares in the last quarter. Geneos Wealth Management Inc. lifted its holdings in Datadog by 17.6% in the first quarter. Geneos Wealth Management Inc. now owns 769 shares of the company’s stock worth $76,000 after purchasing an additional 115 shares during the period. Finally, Sivia Capital Partners LLC acquired a new position in Datadog during the 2nd quarter valued at about $509,000. Institutional investors own 78.29% of the company’s stock.

Insider Buying and Selling at Datadog

In other news, Director Shardul Shah sold 7,916 shares of the business’s stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $124.89, for a total transaction of $988,629.24. Following the completion of the sale, the director directly owned 340,701 shares of the company’s stock, valued at $42,550,147.89. The trade was a 2.27% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CTO Alexis Le-Quoc sold 32,418 shares of the firm’s stock in a transaction on Wednesday, January 28th. The shares were sold at an average price of $140.99, for a total transaction of $4,570,613.82. Following the completion of the transaction, the chief technology officer directly owned 301,458 shares in the company, valued at approximately $42,502,563.42. This represents a 9.71% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 538,917 shares of company stock valued at $86,804,288 over the last 90 days. 8.70% of the stock is currently owned by corporate insiders.

Trending Headlines about Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q4 results beat consensus — revenue, EPS and ARR growth topped estimates and management highlighted AI-driven demand; the print triggered an immediate rally earlier in the week. Datadog beats quarterly estimates on AI-driven demand; shares rise
• Positive Sentiment: Multiple analysts reiterated or raised bullish ratings/targets (DA Davidson buy with $225 PT; Rosenblatt reaffirmed buy at $185; Capital One nudged its target higher to $157), supporting upside expectations. Capital One adjusts price target on Datadog to $157
• Neutral Sentiment: Short-interest data reported as a large increase appears to be a data error (0 shares / NaN); current days-to-cover is reported as ~0 — this is unreliable and likely not a true market signal. (internal data entry)
• Neutral Sentiment: Some shops issued mixed/market‑perform notes (Citizens Jmp reaffirmed market perform) — the street is divided, which can produce volatility but not a clear directional signal. Citizens Jmp market perform note
• Negative Sentiment: Analyst and media caution: several pieces warn about slowing 2026 growth, rising costs and a premium valuation despite the beat — these critiques are pressuring the multiple. 3 Reasons to Stay Away From Datadog Stock Despite Q4 Earnings Beat
• Negative Sentiment: Competitive/comparative pieces argue other cloud names (eg. MongoDB) may be better buys as AI/Atlas exposure looks stronger — increased competition and capital allocation trade-offs are a headwind narrative. MongoDB vs. Datadog: Which Cloud Software Stock is a Better Buy Now?

Datadog Company Profile

Datadog (NASDAQ: DDOG) is a cloud-based monitoring and observability platform that helps organizations monitor, troubleshoot and secure their applications and infrastructure at scale. Its software-as-a-service offering collects and analyzes metrics, traces and logs from servers, containers, cloud services and applications to provide real-time visibility into system performance and health. Datadog’s platform is widely used by engineering, operations and security teams to reduce downtime, accelerate incident response and improve application reliability.

The company’s product suite includes infrastructure monitoring, application performance monitoring (APM), log management, real user monitoring (RUM), synthetic monitoring and network performance monitoring, along with security-focused products such as security monitoring and cloud SIEM.