Datadog (NASDAQ:DDOG) Announces Earnings Results

Datadog (NASDAQ:DDOG) announced its quarterly earnings data on Wednesday. The company reported $0.81 EPS for the quarter, beating the consensus estimate of $0.64 by $0.17, FiscalAI reports. The business had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.15 billion. Datadog had a return on equity of 5.67% and a net margin of 4.48%. The business’s revenue was up 35.2% on a year-over-year basis. During the same period in the previous year, the business earned $0.55 earnings per share.

Here are the key takeaways from Datadog’s conference call:

• Q3 revenue was $1.197 billion, up 35% year over year and above guidance. Growth among customers excluding AI-native customers accelerated for a fifth consecutive quarter to the high 20% range.
• AI-related demand and broader platform adoption continued to expand: Datadog served more than 850 AI customers, and its Infrastructure Monitoring suite surpassed $2 billion in ARR, growing at a mid-30s rate. Adoption of four or more products rose to 61% of customers, while AI-native customer growth continued to outpace the rest of the business.
• Q4 revenue guidance of $1.19 billion–$1.20 billion implies 25%–26% year-over-year growth, slowing from Q3’s 35%. The company is assuming its largest customer spends only at its minimum commitment; early renewals and pricing adjustments at some large customers are also creating near-term revenue headwinds.
• Profitability and contracted demand were strong in Q3: non-GAAP operating margin reached 28%, free cash flow was $251 million, and RPO grew 38% year over year to $3.85 billion. For 2026, Datadog expects revenue of $4.515 billion–$4.525 billion, about 32% growth, with a 24% non-GAAP operating margin.

Datadog Price Performance

Shares of DDOG traded down $31.33 during mid-day trading on Wednesday, hitting $189.19. 10,210,850 shares of the stock were exchanged, compared to its average volume of 5,087,805. The company has a market cap of $67.94 billion, a PE ratio of 386.63, a price-to-earnings-growth ratio of 21.09 and a beta of 1.50. Datadog has a 52-week low of $98.01 and a 52-week high of $300.68. The firm has a 50-day moving average of $250.77 and a two-hundred day moving average of $199.09. The company has a debt-to-equity ratio of 0.23, a quick ratio of 3.20 and a current ratio of 3.20.

Insider Buying and Selling at Datadog

In related news, Director Matthew Jacobson sold 39,912 shares of the business’s stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $250.55, for a total value of $9,999,951.60. Following the sale, the director owned 544,220 shares in the company, valued at approximately $136,354,321. The trade was a 6.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO David Obstler sold 40,000 shares of the business’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $227.47, for a total transaction of $9,098,800.00. Following the completion of the sale, the chief financial officer owned 378,067 shares in the company, valued at $85,998,900.49. This represents a 9.57% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 765,293 shares of company stock valued at $180,233,548. 6.48% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on DDOG shares. Jefferies Financial Group reissued a “hold” rating and set a $300.00 target price on shares of Datadog in a research note on Sunday, October 11th. Cantor Fitzgerald upped their price target on Datadog from $226.00 to $327.00 and gave the stock an “overweight” rating in a research note on Monday, August 3rd. KeyCorp increased their price objective on shares of Datadog from $225.00 to $320.00 and gave the company an “overweight” rating in a report on Thursday, July 16th. Robert W. Baird set a $300.00 price objective on shares of Datadog in a research report on Friday, August 7th. Finally, Wedbush initiated coverage on shares of Datadog in a research report on Friday, September 11th. They set an “outperform” rating and a $275.00 price objective on the stock. Three equities research analysts have rated the stock with a Strong Buy rating, forty have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Datadog has a consensus rating of “Moderate Buy” and an average price target of $287.35.

Datadog News Roundup

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog reported Q3 revenue of $1.20 billion, up 35.2% year over year and above expectations of $1.15 billion. Adjusted earnings of $0.81 per share also beat the $0.64 consensus. The company highlighted growth in customers spending at least $100,000 annually and introduced its Scout 1.0 specialized model. Datadog Announces Third Quarter 2026 Financial Results
• Neutral Sentiment: Analyst views were supportive but mixed: Needham reaffirmed a Buy rating with a $300 target, while BTIG kept its Buy rating but cut its target from $289 to $260. Needham analyst ratings
• Negative Sentiment: Management expects Q4 revenue to be about $1.20 billion—roughly flat with Q3—and said lower usage by a major AI customer is weighing on growth. Investors appear to be prioritizing this near-term slowdown over the quarterly beat, despite reports that Datadog raised its guidance. Datadog Says Lower Usage From Major AI Customer Is Weighing on Growth

Datadog Company Profile

Datadog, Inc is a technology company that provides a cloud-based monitoring and security platform for applications, infrastructure and other technology environments. Its platform helps organizations collect, analyze and visualize data from servers, databases, containers, cloud services, applications and user interactions in a unified environment.

Datadog’s products include infrastructure monitoring, application performance monitoring, log management, real user monitoring, synthetic monitoring, network performance monitoring, cloud security, software delivery tools and incident-management capabilities.