Datadog (NASDAQ:DDOG) Issues FY 2026 Earnings Guidance

Datadog (NASDAQ:DDOG) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 2.360-2.440 for the period, compared to the consensus EPS estimate of 1.800. The company issued revenue guidance of $4.3 billion-$4.3 billion, compared to the consensus revenue estimate of $4.1 billion. Datadog also updated its Q2 2026 guidance to 0.570-0.590 EPS.

Datadog Stock Performance

Shares of DDOG stock traded up $11.43 during trading on Friday, reaching $200.16. 11,935,276 shares of the company’s stock were exchanged, compared to its average volume of 5,925,940. The company has a quick ratio of 3.38, a current ratio of 3.38 and a debt-to-equity ratio of 0.26. The stock has a market capitalization of $70.57 billion, a PE ratio of 645.68, a PEG ratio of 52.02 and a beta of 1.30. Datadog has a twelve month low of $98.01 and a twelve month high of $201.69. The firm’s fifty day moving average price is $124.41 and its 200-day moving average price is $136.98.

Datadog (NASDAQ:DDOG) last posted its earnings results on Thursday, May 7th. The company reported $0.60 earnings per share for the quarter, topping analysts’ consensus estimates of $0.51 by $0.09. The business had revenue of $1.01 billion for the quarter, compared to analyst estimates of $960.12 million. Datadog had a return on equity of 4.14% and a net margin of 3.14%.The firm’s revenue was up 32.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.46 EPS. Datadog has set its FY 2026 guidance at 2.360-2.440 EPS and its Q2 2026 guidance at 0.570-0.590 EPS. As a group, sell-side analysts anticipate that Datadog will post 0.32 EPS for the current year.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on DDOG shares. Guggenheim boosted their target price on Datadog from $175.00 to $225.00 and gave the stock a “buy” rating in a report on Thursday. UBS Group reaffirmed a “buy” rating and issued a $220.00 price objective on shares of Datadog in a report on Friday. BMO Capital Markets upped their price objective on Datadog from $165.00 to $220.00 and gave the company an “outperform” rating in a report on Friday. KeyCorp upped their price objective on Datadog from $155.00 to $225.00 and gave the company an “overweight” rating in a report on Friday. Finally, DA Davidson reaffirmed a “buy” rating and issued a $225.00 price objective on shares of Datadog in a report on Monday. One analyst has rated the stock with a Strong Buy rating, forty have issued a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, Datadog has an average rating of “Moderate Buy” and a consensus target price of $211.76.

Insider Activity

In other news, Director Amit Agarwal sold 20,000 shares of the company’s stock in a transaction on Monday, April 27th. The stock was sold at an average price of $131.47, for a total transaction of $2,629,400.00. Following the completion of the sale, the director directly owned 1,640 shares in the company, valued at approximately $215,610.80. This represents a 92.42% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Alexis Le-Quoc sold 43,106 shares of the company’s stock in a transaction on Monday, May 4th. The shares were sold at an average price of $144.93, for a total value of $6,247,352.58. Following the sale, the chief technology officer owned 531,311 shares of the company’s stock, valued at approximately $77,002,903.23. The trade was a 7.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 654,018 shares of company stock worth $80,903,197. 6.67% of the stock is owned by insiders.

Key Headlines Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog reported Q1 revenue of about $1.01 billion and EPS of $0.60, both above Wall Street estimates, reinforcing the growth story. Datadog Q1 2026 Financial Results
• Positive Sentiment: Management raised Q2 and FY 2026 guidance well above consensus, which is the main catalyst behind the stock’s strength and suggests momentum is carrying into the rest of the year. Reuters article on annual forecast raise
• Positive Sentiment: Multiple analysts lifted price targets after the earnings beat-and-raise, signaling broader confidence that Datadog can keep outperforming. Analyst target hikes
• Positive Sentiment: Datadog for Government received FedRAMP High certification, which could help open more federal and high-security public sector opportunities. FedRAMP High certification
• Positive Sentiment: RBC and other firms upgraded their outlooks and lifted targets, adding to the bullish analyst momentum around the name. RBC analyst commentary
• Neutral Sentiment: Insider selling by several executives and a director was disclosed, but the transactions were pre-arranged 10b5-1 sales and appear more like profit-taking than a change in fundamentals. SEC filing
• Neutral Sentiment: The stock’s sharp run-up has increased volatility, and some trading looks momentum- and options-driven rather than purely fundamental.

Institutional Trading of Datadog

Several institutional investors and hedge funds have recently modified their holdings of the business. Compound Planning Inc. lifted its position in shares of Datadog by 17.3% during the 4th quarter. Compound Planning Inc. now owns 8,716 shares of the company’s stock worth $1,185,000 after buying an additional 1,284 shares during the last quarter. Corient Private Wealth LLC lifted its position in shares of Datadog by 127.3% during the 4th quarter. Corient Private Wealth LLC now owns 36,511 shares of the company’s stock worth $4,965,000 after buying an additional 20,447 shares during the last quarter. Mercer Global Advisors Inc. ADV lifted its position in shares of Datadog by 10.3% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 21,643 shares of the company’s stock worth $2,943,000 after buying an additional 2,028 shares during the last quarter. Vident Advisory LLC lifted its position in shares of Datadog by 5.6% during the 4th quarter. Vident Advisory LLC now owns 235,640 shares of the company’s stock worth $32,045,000 after buying an additional 12,577 shares during the last quarter. Finally, Delta Global Management LP bought a new stake in shares of Datadog during the 4th quarter worth $2,686,000. 78.29% of the stock is currently owned by institutional investors.

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.