Datadog (NASDAQ:DDOG) Updates FY 2026 Earnings Guidance

Datadog (NASDAQ:DDOG) updated its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 2.500-2.540 for the period, compared to the consensus estimate of 2.070. The company issued revenue guidance of $4.5 billion-$4.5 billion, compared to the consensus revenue estimate of $4.3 billion. Datadog also updated its Q3 2026 guidance to 0.630-0.650 EPS.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on DDOG shares. KeyCorp raised their price objective on Datadog from $225.00 to $320.00 and gave the company an “overweight” rating in a research report on Thursday, July 16th. Canaccord Genuity Group boosted their target price on Datadog from $250.00 to $295.00 and gave the stock a “buy” rating in a research report on Tuesday. Cantor Fitzgerald increased their price target on Datadog from $226.00 to $327.00 and gave the company an “overweight” rating in a research note on Monday. Monness Crespi & Hardt raised their price target on Datadog from $255.00 to $270.00 in a report on Thursday, May 7th. Finally, Capital One Financial lifted their price objective on Datadog from $217.00 to $268.00 and gave the stock an “overweight” rating in a research note on Wednesday, June 17th. Two analysts have rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Datadog presently has an average rating of “Moderate Buy” and an average target price of $271.57.

Datadog Stock Down 1.7%

Shares of NASDAQ DDOG opened at $283.17 on Thursday. The company has a current ratio of 3.40, a quick ratio of 3.40 and a debt-to-equity ratio of 0.25. Datadog has a 12-month low of $98.01 and a 12-month high of $292.72. The firm’s 50-day moving average price is $249.48 and its 200-day moving average price is $176.68. The stock has a market capitalization of $100.80 billion, a price-to-earnings ratio of 745.20, a P/E/G ratio of 29.19 and a beta of 1.54.

Datadog (NASDAQ:DDOG) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.65 EPS for the quarter, topping the consensus estimate of $0.58 by $0.07. Datadog had a return on equity of 4.83% and a net margin of 3.69%.Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. On average, equities research analysts anticipate that Datadog will post 0.64 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Michael James Callahan sold 12,500 shares of Datadog stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $267.47, for a total value of $3,343,375.00. Following the completion of the transaction, the director owned 14,996 shares in the company, valued at approximately $4,010,980.12. The trade was a 45.46% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Amit Agarwal sold 20,000 shares of the business’s stock in a transaction that occurred on Thursday, July 30th. The shares were sold at an average price of $266.82, for a total value of $5,336,400.00. Following the transaction, the director directly owned 1,640 shares in the company, valued at approximately $437,584.80. This represents a 92.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,437,118 shares of company stock valued at $337,708,784 over the last quarter. Company insiders own 6.48% of the company’s stock.

Datadog News Roundup

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Analysts continue to raise their expectations. Cantor Fitzgerald lifted its price target to $327 and maintained an overweight rating, while Canaccord Genuity raised its target to $295 and Rosenblatt Securities increased its target to $305; all three firms retained buy-equivalent ratings. These revisions reflect confidence in Datadog’s AI products, platform expansion and demand for observability and security tools. Cantor Fitzgerald price target article
• Positive Sentiment: Datadog enters its earnings report with solid operating momentum. The company’s prior quarter delivered revenue of $1.01 billion, up 32.1% year over year, and adjusted earnings of $0.60 per share, exceeding consensus estimates. Investors are looking for continued customer additions, usage growth and traction from AI-related products in the upcoming results. Datadog Q2 earnings outlook
• Neutral Sentiment: Datadog will present at several investor conferences, including Canaccord Genuity’s Growth Conference on August 12, Citi’s Global TMT Conference on September 8 and Goldman Sachs’ Communacopia & Technology Conference. The events could provide updates on demand, AI adoption and guidance, but the announcement itself does not change financial forecasts. Datadog investor conferences announcement
• Negative Sentiment: Valuation and earnings risk remain significant. Datadog trades at a very high earnings multiple, so any shortfall in revenue growth, margins, customer metrics or forward guidance could trigger volatility. The company is expected to report quarterly earnings on Thursday, making the near-term reaction especially dependent on results relative to elevated expectations. Datadog Q2 earnings preview
• Negative Sentiment: Director Amit Agarwal sold 20,000 shares for approximately $5.3 million, reducing his direct ownership by more than 92%. The sale was conducted under a pre-arranged Rule 10b5-1 plan, limiting its bearish significance, but repeated insider selling may still weigh modestly on sentiment. SEC insider transaction filing

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. JPL Wealth Management LLC purchased a new position in shares of Datadog in the 3rd quarter valued at $27,000. Quarry LP purchased a new position in Datadog during the 3rd quarter worth approximately $45,000. DV Equities LLC purchased a new position in shares of Datadog during the 4th quarter valued at about $62,000. GW&K Investment Management LLC boosted its stake in shares of Datadog by 964.3% during the 4th quarter. GW&K Investment Management LLC now owns 596 shares of the company’s stock worth $81,000 after acquiring an additional 540 shares in the last quarter. Finally, Johnson Financial Group Inc. grew its stake in Datadog by 229.0% in the 3rd quarter. Johnson Financial Group Inc. now owns 658 shares of the company’s stock valued at $94,000 after acquiring an additional 458 shares during the period. Hedge funds and other institutional investors own 78.29% of the company’s stock.

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.