Datadog (NASDAQ:DDOG) Posts Quarterly Earnings Results, Beats Estimates By $0.09 EPS

Datadog (NASDAQ:DDOG) posted its quarterly earnings data on Thursday. The company reported $0.60 earnings per share for the quarter, topping the consensus estimate of $0.51 by $0.09, Briefing.com reports. Datadog had a return on equity of 4.83% and a net margin of 3.69%.The business had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $960.12 million. During the same quarter in the previous year, the firm earned $0.46 EPS. The firm’s revenue was up 32.1% compared to the same quarter last year. Datadog updated its FY 2026 guidance to 2.360-2.440 EPS and its Q2 2026 guidance to 0.570-0.590 EPS.

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

• Datadog reported quarterly revenue above $1 billion (≈$1.01B), up 32% year-over-year, with total ARR exceeding $4 billion, free cash flow of $289M (29% margin), and customers rising to ~33,200.
• The company highlighted strong AI momentum—GA/preview launches (MCP Server, Bits AI Security Analyst, Bits Assistant, GPU Monitoring), ~6,500 customers using AI integrations that represent ~80% of ARR, and new 7-figure/8-figure deals with two hyperscaler AI research labs.
• Platform adoption broadened outside AI: non-AI customer revenue accelerated to mid-20s% YoY and product attach rose (56% of customers use 4+ products, 35% use 6+), while 4,550 customers now have ARR ≥ $100k (≈90% of ARR).
• Guidance for Q2 is $1.07B–$1.08B (29%–31% YoY) and FY2026 revenue is $4.30B–$4.34B (25%–27% YoY), though management noted it applied extra conservatism to projections for its largest customer.
• Datadog is expanding into regulated/public-sector and sovereign-data markets—receiving FedRAMP High, planning a U.K. data center, and promoting Bring-Your-Own-Cloud (CloudPrem) options to win larger, compliance-sensitive workloads.

Datadog Price Performance

Shares of DDOG traded up $11.43 during mid-day trading on Friday, reaching $200.16. The company had a trading volume of 12,024,412 shares, compared to its average volume of 6,254,968. Datadog has a twelve month low of $98.01 and a twelve month high of $201.69. The company has a debt-to-equity ratio of 0.25, a current ratio of 3.40 and a quick ratio of 3.38. The company’s 50-day moving average is $124.41 and its 200-day moving average is $136.98. The company has a market capitalization of $70.57 billion, a P/E ratio of 526.75, a P/E/G ratio of 68.31 and a beta of 1.30.

Insider Buying and Selling

In other news, CEO Olivier Pomel sold 68,922 shares of the stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $110.54, for a total value of $7,618,637.88. Following the completion of the transaction, the chief executive officer directly owned 704,821 shares of the company’s stock, valued at approximately $77,910,913.34. This represents a 8.91% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CTO Alexis Le-Quoc sold 53,912 shares of the stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $125.49, for a total value of $6,765,416.88. Following the transaction, the chief technology officer owned 437,257 shares of the company’s stock, valued at $54,871,380.93. This represents a 10.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 654,018 shares of company stock valued at $80,903,197. 6.67% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Datadog

Several institutional investors have recently added to or reduced their stakes in DDOG. Sivia Capital Partners LLC bought a new position in Datadog in the 2nd quarter valued at $509,000. Brighton Jones LLC acquired a new stake in shares of Datadog in the 4th quarter valued at $209,000. Bison Wealth LLC acquired a new stake in shares of Datadog in the 4th quarter valued at $228,000. Claro Advisors Inc. acquired a new stake in shares of Datadog in the 4th quarter valued at $204,000. Finally, Fieldview Capital Management LLC acquired a new stake in shares of Datadog in the 4th quarter valued at $205,000. 78.29% of the stock is owned by institutional investors.

Analysts Set New Price Targets

DDOG has been the subject of several research analyst reports. BNP Paribas Exane cut their target price on shares of Datadog from $210.00 to $175.00 and set an “outperform” rating for the company in a research note on Thursday, January 15th. Citizens Jmp upgraded shares of Datadog from a “market perform” rating to an “outperform” rating and set a $225.00 target price for the company in a research note on Thursday. Rothschild & Co Redburn initiated coverage on shares of Datadog in a research note on Thursday, April 23rd. They set a “buy” rating and a $170.00 target price for the company. BTIG Research upped their target price on shares of Datadog from $170.00 to $212.00 and gave the company a “buy” rating in a research note on Thursday. Finally, DA Davidson reiterated a “buy” rating and set a $225.00 target price on shares of Datadog in a research note on Monday, May 4th. One research analyst has rated the stock with a Strong Buy rating, forty have given a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, Datadog currently has an average rating of “Moderate Buy” and an average target price of $211.76.

Datadog News Summary

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog delivered a beat-and-raise quarter, with Q1 revenue of about $1.01 billion and EPS of $0.60 both ahead of estimates, while management lifted FY 2026 and Q2 guidance well above consensus. Datadog Q1 2026 Financial Results
• Positive Sentiment: Several major Wall Street firms raised price targets after the results, including Citigroup, RBC, Piper Sandler, Wedbush, TD Cowen, Morgan Stanley, Mizuho, and others, reinforcing the bullish case and supporting the stock’s rally. Analyst price target hikes
• Positive Sentiment: Management highlighted strong demand across AI-native and non-AI customers, plus growth in larger customers and new product launches, which suggests the growth story is broadening beyond one-time earnings strength. RBC commentary on Datadog
• Neutral Sentiment: Heavy call-option buying and elevated trading volume indicate strong short-term momentum, but some of the move may be trader-driven and could increase volatility. Options activity report
• Negative Sentiment: Several insiders, including the CTO, general counsel, and a director, sold shares in pre-arranged 10b5-1 transactions, which may temper enthusiasm for some investors even though the sales were scheduled in advance. SEC filing for insider sale

About Datadog

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.