Datadog (NASDAQ:DDOG) Issues Q3 2026 Earnings Guidance

Datadog (NASDAQ:DDOG) issued an update on its third quarter 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 0.630-0.650 for the period, compared to the consensus earnings per share estimate of 0.520. The company issued revenue guidance of $1.1 billion-$1.1 billion, compared to the consensus revenue estimate of $1.1 billion. Datadog also updated its FY 2026 guidance to 2.500-2.540 EPS.

Datadog Stock Up 4.0%

Shares of Datadog stock traded up $9.23 during trading hours on Friday, reaching $238.52. 1,503,849 shares of the company’s stock were exchanged, compared to its average volume of 5,622,835. The company has a 50 day moving average of $249.56 and a two-hundred day moving average of $177.45. Datadog has a fifty-two week low of $98.01 and a fifty-two week high of $292.72. The company has a current ratio of 3.40, a quick ratio of 3.40 and a debt-to-equity ratio of 0.25. The stock has a market cap of $84.91 billion, a P/E ratio of 629.93, a P/E/G ratio of 28.69 and a beta of 1.54.

Datadog (NASDAQ:DDOG) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.65 earnings per share for the quarter, beating analysts’ consensus estimates of $0.58 by $0.07. Datadog had a return on equity of 4.83% and a net margin of 3.69%.The firm had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.08 billion. During the same period last year, the company earned $0.46 earnings per share. The business’s revenue was up 35.6% compared to the same quarter last year. 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, sell-side analysts forecast that Datadog will post 0.64 EPS for the current fiscal year.

Analyst Ratings Changes

Several brokerages have recently weighed in on DDOG. Rothschild & Co Redburn assumed coverage on shares of Datadog in a research report on Thursday, April 23rd. They issued a “buy” rating and a $170.00 price objective on the stock. Guggenheim lifted their price target on shares of Datadog from $225.00 to $300.00 and gave the company a “buy” rating in a research report on Wednesday, July 22nd. Barclays increased their price target on Datadog from $260.00 to $290.00 and gave the stock an “overweight” rating in a research report on Tuesday, July 21st. Raymond James Financial reaffirmed an “outperform” rating and issued a $280.00 price target on shares of Datadog in a research note on Thursday. Finally, Canaccord Genuity Group upped their price objective on shares of Datadog from $250.00 to $295.00 and gave the stock a “buy” rating in a research report on Tuesday. Two investment analysts have rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating, three have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, Datadog has a consensus rating of “Moderate Buy” and an average target price of $274.05.

Insider Transactions at Datadog

In other Datadog news, CTO Alexis Le-Quoc sold 43,224 shares of the business’s stock in a transaction on Monday, July 20th. The shares were sold at an average price of $265.23, for a total transaction of $11,464,301.52. Following the completion of the sale, the chief technology officer owned 509,805 shares in the company, valued at approximately $135,215,580.15. The trade was a 7.82% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael James Callahan sold 12,500 shares of the firm’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $287.47, for a total transaction of $3,593,375.00. Following the completion of the transaction, the director directly owned 14,996 shares in the company, valued at $4,310,900.12. This trade represents a 45.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 1,375,022 shares of company stock valued at $327,029,246. 6.48% of the stock is currently owned by corporate insiders.

Key Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog reported second-quarter revenue of $1.12 billion, up 35.6% year over year and above the $1.08 billion consensus estimate. Adjusted earnings of $0.65 per share also exceeded the $0.58 expectation and rose from $0.46 a year earlier. Datadog Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management raised its fiscal 2026 outlook to approximately $4.45 billion-$4.47 billion in revenue and $2.50-$2.54 in EPS. Third-quarter EPS guidance of $0.63-$0.65 was also above the $0.52 analyst consensus, supporting the long-term growth case. Datadog Beats Earnings Estimates and Raises Outlook
• Positive Sentiment: DA Davidson reaffirmed its “Buy” rating and set a $315 price target, implying substantial upside from the recent trading level. DA Davidson Reaffirms Buy Rating
• Neutral Sentiment: Director Michael James Callahan sold 12,500 shares for approximately $3.6 million under a pre-arranged Rule 10b5-1 plan. The sale reduced his direct holdings by about 45%, but its planned nature makes it a limited signal regarding current business conditions. Datadog Director Stock Sale Filing
• Negative Sentiment: Investors were unsettled by decelerating bookings and management’s disclosure that a major AI customer plans to reduce usage. Because Datadog’s consumption-based revenue is tied to customer activity, the change could pressure near-term growth and contributed to more cautious guidance. Datadog Says Lower Usage From Major AI Customer Could Dent Growth
• Negative Sentiment: The selloff also reflects profit-taking and valuation concerns. With DDOG trading at a very high earnings multiple after a substantial run-up, investors demanded results that exceeded expectations; strong execution was not enough to offset concerns about slower momentum and limited room for error. Datadog Stock Falls as High Expectations Offset Strong Quarter

Institutional Investors Weigh In On Datadog

Several large investors have recently added to or reduced their stakes in the company. Compound Planning Inc. grew its stake in Datadog by 17.3% during the fourth quarter. Compound Planning Inc. now owns 8,716 shares of the company’s stock valued at $1,185,000 after acquiring an additional 1,284 shares in the last quarter. Corient Private Wealth LLC boosted its holdings in Datadog by 127.3% in the 4th quarter. Corient Private Wealth LLC now owns 36,511 shares of the company’s stock valued at $4,965,000 after purchasing an additional 20,447 shares during the period. Mercer Global Advisors Inc. ADV grew 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 valued at $2,943,000 after purchasing an additional 2,028 shares in the last quarter. Vident Advisory LLC increased its holdings in shares of Datadog by 5.6% in the fourth quarter. Vident Advisory LLC now owns 235,640 shares of the company’s stock worth $32,045,000 after purchasing an additional 12,577 shares during the period. Finally, Delta Global Management LP bought a new position in shares of Datadog in the fourth quarter worth $2,686,000. 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.