Datadog má hodnocení Zacks #3 (držet), což naznačuje, že jeho krátkodobá výkonnost bude v souladu s širším trhem. Akcie za poslední měsíc posílily o 6,3 %.
Datadog (DDOG - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this data analytics and cloud monitoring company have returned +6.3%, compared to the Zacks S&P 500 composite's +0.7% change. During this period, the Zacks Internet - Software industry, which Datadog falls in, has gained 2.2%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Datadog is expected to post earnings of $0.64 per share for the current quarter, representing a year-over-year change of +16.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $2.52 points to a change of +22.9% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $2.96 indicates a change of +17.4% from what Datadog is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Datadog.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Datadog, the consensus sales estimate for the current quarter of $1.14 billion indicates a year-over-year change of +28.9%. For the current and next fiscal years, $4.46 billion and $5.45 billion estimates indicate +30.2% and +22.2% changes, respectively.
Last Reported Results and Surprise HistoryDatadog reported revenues of $1.12 billion in the last reported quarter, representing a year-over-year change of +35.6%. EPS of $0.65 for the same period compares with $0.46 a year ago.
Compared to the Zacks Consensus Estimate of $1.08 billion, the reported revenues represent a surprise of +3.85%. The EPS surprise was +12.07%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Datadog is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Datadog. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Bernstein zvýšil své doporučení pro Datadog na „Outperform“ kvůli rychle rostoucí spotřebě AI tokenů ve velkých laboratořích zaměřených na AI; akcie v ranním obchodování vzrostly o 5 %.
Bernstein just reversed its Datadog call one quarter after a downgrade shook the stock, pointing to AI token consumption as the reason. Whether that optimism survives the November earnings report is the question every investor in the space should be…
Signs of accelerating AI workloads are pulling cloud software back into favor after a rough stretch for technology names. Datadog (NASDAQ:DDOG | DDOG Price Prediction) stock is up 5% to $259.15 in morning trading, leading the group higher.
Bernstein upgraded Datadog stock to Outperform from Market Perform, stating that its data show enterprise AI token consumption at the largest AI labs growing rapidly quarter over quarter. The new rating rests on the conclusion that the earlier view of Datadog’s AI-driven growth was too conservative, a reversal that comes one quarter after a downgrade tied to a revenue cut at Datadog’s largest AI-native customer and slower demand among established clients.
A broad selloff in technology stocks the prior week sets the background for the upgrade. Observability software from Datadog tracks how applications and cloud infrastructure perform, so more AI tokens moving through customer systems could translate into more activity for the company to monitor and bill.
Second-Quarter Results Back the AI Case
Second-quarter 2026 results already gave Datadog’s AI story a solid base. The company posted revenue of $1.12 billion, up 35.6% from a year earlier, and non-GAAP earnings per share (EPS) of $0.65, beating expectations. That marked Datadog’s fifth consecutive EPS beat.
Datadog’s larger accounts kept expanding as well, with customers paying $100,000 or more in annual recurring revenue up 23% to approximately 4,720. Growth in that tier picked up from 21% in the first quarter of 2026.
Management raised Datadog’s full-year 2026 revenue guidance to between $4.45 billion and $4.47 billion after that report. Chief executive Olivier Pomel tied the momentum to AI. He made the point in the August release, stating, “Our customers are building and deploying with AI, and they are using the Datadog platform to observe, secure, and act on their AI-enabled solutions.”
Datadog Builds Tools for AI Workloads
Datadog has been shipping products aimed directly at AI customers, including Bits AI for autonomous incident detection and resolution, AI Guard for protecting AI agents, and Bits Agent Builder for creating custom agents. The company launched more than 100 new capabilities at its DASH 2026 conference, including a Bring Your Own Cloud model that runs Datadog inside customer environments. It also acquired Adaptive ML to speed up its AI research.
That product push came alongside better profitability, with Datadog’s non-GAAP operating margin expanding to 23% from 20% a year earlier. Its free cash flow margin reached 25% in the quarter.
Snowflake and Cloudflare Trail the Leader
Checking in on the peers, Snowflake (NYSE:SNOW) stock is up 3%, a solid gain that still trails the jump in Datadog stock. Cloudflare (NYSE:NET) stock is up 0.4% to $297.58, lagging both Datadog stock and Snowflake stock. Snowflake sells a cloud data platform, while Cloudflare runs a network for security and content delivery.
Sector-wide gains are more modest, as the WisdomTree Cloud Computing Fund (NASDAQ:WCLD) is up 0.8%. Broader tech is running ahead of cloud software, as the Invesco QQQ Trust (NASDAQ:QQQ) is up 1%. That gap leaves the jump in Datadog stock looking like a company-specific reaction to the upgrade.
Bernstein Upgrade Sets Up Datadog’s November Report
Datadog is scheduled to report third-quarter 2026 results in early November, with its guidance calling for revenue of $1.135 billion to $1.145 billion. Datadog’s report needs to show AI-native customers spending more, since the upgrade rests on AI workload growth. Another focus is whether established customers also step up their spending after the slower demand behind last quarter’s downgrade.
Last quarter’s downgrade is a reminder that Datadog’s growth depends partly on its largest AI-native customer. When all is said and done, investors should keep their Datadog stock positions moderate. A second revenue cut could undo the optimism behind the new rating, and the prior week’s tech selloff showed how quickly sentiment can turn.
Contact [email protected] for any questions or corrections.
Datadog, Inc. (DDOG) shares rise 280% since institutions first bought big in 2020.
DDOG offers an AI-powered, automated continuous monitoring and security platform for cloud-based applications and technology infrastructure. The company’s second-quarter fiscal 2026 earnings report showed $1.12 billion in quarterly revenue (a 36% year-over-year jump), operating income of $257 million (a 23% margin), 33,400 customers (up from 31,400 a year ago), and offered full-year revenue guidance of up to $4.47 billion (a 30% jump). DDOG reports again on Nov. 4.
It’s no wonder DDOG shares are up 96% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.
Big Money Loves its Datadog
Institutional volumes reveal plenty. In the last year, DDOG has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in DDOG shares. They reflect our proprietary inflow signal, pushing the stock higher:
Huge inflows in May and June pushed DDOG shares higher – up 96% so far in 2026. Source: www.moneyflows.com
Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Datadog.
Datadog Fundamental Analysis
Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, DDOG has had strong sales and earnings growth:
Also, EPS is estimated to ramp higher this year by +17%.
Now it makes sense why the stock has been generating Big Money interest. DDOG has a track record of strong financial performance.
Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.
Datadog has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s generated 10 outlier inflow signals since 2020 and is up 280% since the first one. The blue bars below show when DDOG was a top pick on the Outlier 20 report…the Big Money buying continues:
DDOG shares have generated 10 outlier inflow signals since 2020 and are up 280% since the first one. Source: www.moneyflows.com
Tracking unusual volumes reveals the power of money flows.
This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.
Datadog Price Prediction
The DDOG action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no position in DDOG at the time of publication.
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Krilogy Financial LLC boosted its position in Datadog, Inc. (NASDAQ:DDOG – Free Report) by 321.5% in the third quarter, according to its most recent filing with the SEC. The institutional investor owned 14,853 shares of the company’s stock after purchasing an additional 11,329 shares during the period. Krilogy Financial LLC’s holdings in Datadog were worth $4,067,000 as of its most recent SEC filing.
Several other institutional investors and hedge funds have also recently added to or reduced their stakes in DDOG. Janus Henderson Group PLC boosted its stake in shares of Datadog by 22.8% in the 1st quarter. Janus Henderson Group PLC now owns 7,749,569 shares of the company’s stock worth $905,570,000 after buying an additional 1,439,082 shares during the last quarter. First Trust Advisors LP boosted its stake in shares of Datadog by 81.5% in the 1st quarter. First Trust Advisors LP now owns 3,685,562 shares of the company’s stock worth $435,081,000 after buying an additional 1,654,429 shares during the last quarter. Bank of New York Mellon Corp grew its holdings in shares of Datadog by 30.3% in the first quarter. Bank of New York Mellon Corp now owns 2,645,827 shares of the company’s stock valued at $312,340,000 after acquiring an additional 615,090 shares in the last quarter. Employees Provident Fund Board bought a new position in shares of Datadog in the fourth quarter valued at approximately $251,582,000. Finally, Arrowstreet Capital Limited Partnership grew its holdings in shares of Datadog by 162.2% in the first quarter. Arrowstreet Capital Limited Partnership now owns 1,571,018 shares of the company’s stock valued at $185,459,000 after acquiring an additional 971,910 shares in the last quarter. Hedge funds and other institutional investors own 78.29% of the company’s stock.
Insider Activity at Datadog In other Datadog news, CTO Alexis Le-Quoc sold 53,912 shares of the stock in a transaction on Monday, August 10th. The stock was sold at an average price of $253.36, for a total transaction of $13,659,144.32. Following the completion of the transaction, the chief technology officer directly owned 509,805 shares of the company’s stock, valued at approximately $129,164,194.80. This represents a 9.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Olivier Pomel sold 127,141 shares of the firm’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $286.71, for a total value of $36,452,596.11. Following the completion of the sale, the chief executive officer directly owned 612,747 shares of the company’s stock, valued at $175,680,692.37. This represents a 17.18% 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 991,988 shares of company stock worth $241,440,796. 6.48% of the stock is owned by company insiders.
Datadog Stock Down 4.9% DDOG opened at $269.33 on Thursday. The company has a quick ratio of 3.20, a current ratio of 3.20 and a debt-to-equity ratio of 0.23. The stock has a market cap of $96.71 billion, a price-to-earnings ratio of 464.49, a PEG ratio of 27.65 and a beta of 1.51. Datadog, Inc. has a twelve month low of $98.01 and a twelve month high of $300.68. The company’s 50-day moving average price is $245.68 and its two-hundred day moving average price is $220.01. Datadog (NASDAQ:DDOG – Get Free Report) last released its 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 net margin of 4.48% and a return on equity of 5.67%. The firm had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.08 billion. During the same period in the prior year, the firm earned $0.46 EPS. The company’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. As a group, equities analysts expect that Datadog, Inc. will post 0.70 earnings per share for the current year.
Analyst Upgrades and Downgrades A number of analysts recently commented on DDOG shares. Citigroup increased their price target on Datadog from $300.00 to $305.00 and gave the company a “buy” rating in a research report on Friday, August 7th. Barclays boosted their price objective on Datadog from $290.00 to $300.00 and gave the stock an “overweight” rating in a research report on Tuesday. FBN Securities started coverage on Datadog in a research note on Friday, October 2nd. They issued an “outperform” rating and a $325.00 price objective for the company. TD Cowen upped their price objective on Datadog from $260.00 to $300.00 and gave the company a “buy” rating in a research note on Wednesday, July 22nd. Finally, Robert W. Baird set a $300.00 target price on Datadog in a research report on Friday, August 7th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating, four have issued a Hold rating and one has 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 $280.51.
Get Our Latest Research Report on Datadog
About Datadog (Free Report)
Datadog, Inc is a software company that provides a cloud-based monitoring, observability and security platform. Its services help organizations collect, analyze and visualize data from applications, infrastructure, networks, databases and other technology environments, enabling them to identify performance issues, manage incidents and improve digital services.
The company’s product offerings include infrastructure monitoring, application performance monitoring, log management, database and network monitoring, real user and synthetic experience monitoring, cloud security, software supply chain security, incident management and workflow automation.
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Farther Finance Advisors LLC raised its stake in shares of Datadog, Inc. (NASDAQ:DDOG – Free Report) by 921.4% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 62,814 shares of the company’s stock after purchasing an additional 56,664 shares during the period. Farther Finance Advisors LLC’s holdings in Datadog were worth $17,202,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Several other institutional investors have also modified their holdings of the stock. EMC Capital Management bought a new position in shares of Datadog during the 2nd quarter valued at approximately $28,000. Cornerstone Financial Management LLC lifted its position in Datadog by 54.9% in the second quarter. Cornerstone Financial Management LLC now owns 127 shares of the company’s stock worth $33,000 after buying an additional 45 shares during the last quarter. Elevation Wealth Partners LLC lifted its position in Datadog by 2,700.0% in the second quarter. Elevation Wealth Partners LLC now owns 168 shares of the company’s stock worth $44,000 after buying an additional 162 shares during the last quarter. Planning Strategies Inc. boosted its stake in Datadog by 529.6% during the third quarter. Planning Strategies Inc. now owns 170 shares of the company’s stock worth $47,000 after buying an additional 143 shares during the period. Finally, Retirement Wealth Solutions LLC boosted its stake in Datadog by 233.3% during the third quarter. Retirement Wealth Solutions LLC now owns 200 shares of the company’s stock worth $55,000 after buying an additional 140 shares during the period. 78.29% of the stock is owned by institutional investors.
Datadog Stock Performance DDOG stock opened at $273.80 on Friday. Datadog, Inc. has a 1-year low of $98.01 and a 1-year high of $292.72. The business has a 50-day moving average price of $245.27 and a 200 day moving average price of $215.54. The company has a market capitalization of $98.32 billion, a P/E ratio of 558.79, a PEG ratio of 26.48 and a beta of 1.51. The company has a debt-to-equity ratio of 0.23, a current ratio of 3.20 and a quick ratio of 3.20.
Datadog (NASDAQ:DDOG – Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.58 by $0.07. Datadog had a net margin of 4.48% and a return on equity of 5.67%. The company had revenue of $1.12 billion for the quarter, compared to analysts’ expectations of $1.08 billion. During the same period in the prior year, the business earned $0.46 EPS. The firm’s quarterly revenue was up 35.6% on a year-over-year basis. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. As a group, equities research analysts forecast that Datadog, Inc. will post 0.7 EPS for the current fiscal year. Analyst Ratings Changes A number of research firms recently weighed in on DDOG. Arete Research increased their price objective on shares of Datadog from $260.00 to $340.00 and gave the stock a “buy” rating in a research report on Tuesday, June 23rd. FBN Securities started coverage on shares of Datadog in a report on Friday, October 2nd. They issued an “outperform” rating and a $325.00 price target on the stock. BMO Capital Markets set a $300.00 price target on shares of Datadog in a research note on Friday, August 7th. Citigroup lifted their price objective on shares of Datadog from $300.00 to $305.00 and gave the company a “buy” rating in a report on Friday, August 7th. Finally, Capital One Financial boosted their price objective on shares of Datadog from $217.00 to $268.00 and gave the company an “overweight” rating in a research report on Wednesday, June 17th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Datadog has an average rating of “Moderate Buy” and an average price target of $277.73.
Read Our Latest Report on DDOG
Insider Activity In related news, CTO Alexis Le-Quoc sold 53,912 shares of Datadog stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $253.36, for a total transaction of $13,659,144.32. Following the transaction, the chief technology officer directly owned 509,805 shares of the company’s stock, valued at $129,164,194.80. This trade represents a 9.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO David Obstler sold 40,000 shares of the business’s stock in a transaction that occurred 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 transaction, the chief financial officer directly owned 378,067 shares of the company’s stock, valued at $85,998,900.49. This trade represents a 9.57% 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. Over the last ninety days, insiders have sold 938,076 shares of company stock worth $226,690,473. Corporate insiders own 6.48% of the company’s stock.
Datadog Profile (Free Report)
Datadog, Inc is a software company that provides a cloud-based monitoring, observability and security platform. Its services help organizations collect, analyze and visualize data from applications, infrastructure, networks, databases and other technology environments, enabling them to identify performance issues, manage incidents and improve digital services.
The company’s product offerings include infrastructure monitoring, application performance monitoring, log management, database and network monitoring, real user and synthetic experience monitoring, cloud security, software supply chain security, incident management and workflow automation.
Further Reading Five stocks we like better than Datadog Want Private-Market Access to Kalshi and Polymarket? Try This ETF Levi’s Stock Dip Reveals Value Opportunity Despite Q3 Headwinds PepsiCo Stock Looks Poised to Bottom With High Yield, Deep Value Alphabet’s $1.8 Billion Black Hills Deal Powers AI Data Center Push Want to see what other hedge funds are holding DDOG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Datadog, Inc. (NASDAQ:DDOG – Free Report).
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MassMutual Private Wealth & Trust FSB raised its holdings in Datadog, Inc. (NASDAQ:DDOG – Free Report) by 7,711.3% during the third quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 94,048 shares of the company’s stock after acquiring an additional 92,844 shares during the quarter. MassMutual Private Wealth & Trust FSB’s holdings in Datadog were worth $25,755,000 as of its most recent SEC filing.
A number of other institutional investors have also recently bought and sold shares of the business. ING Groep NV grew its position in shares of Datadog by 697.3% during the 4th quarter. ING Groep NV now owns 37,519 shares of the company’s stock worth $5,102,000 after buying an additional 32,813 shares during the period. Integrated Wealth Concepts LLC grew its holdings in Datadog by 1,691.4% during the second quarter. Integrated Wealth Concepts LLC now owns 186,216 shares of the company’s stock valued at $48,483,000 after purchasing an additional 175,821 shares during the period. iA Global Asset Management Inc. grew its holdings in shares of Datadog by 133.7% in the 1st quarter. iA Global Asset Management Inc. now owns 94,540 shares of the company’s stock valued at $11,160,000 after buying an additional 54,084 shares during the period. TD Asset Management Inc increased its position in shares of Datadog by 68.9% during the fourth quarter. TD Asset Management Inc now owns 249,202 shares of the company’s stock worth $33,889,000 after acquiring an additional 101,666 shares in the last quarter. Finally, Natixis Advisors LLC raised its holdings in shares of Datadog by 19.2% during the fourth quarter. Natixis Advisors LLC now owns 46,987 shares of the company’s stock worth $6,390,000 after acquiring an additional 7,558 shares during the period. Institutional investors and hedge funds own 78.29% of the company’s stock.
Datadog Price Performance Datadog stock opened at $277.22 on Monday. The company has a current ratio of 3.20, a quick ratio of 3.20 and a debt-to-equity ratio of 0.23. Datadog, Inc. has a 1-year low of $98.01 and a 1-year high of $292.72. The company has a fifty day simple moving average of $243.98 and a 200 day simple moving average of $211.43. The company has a market cap of $99.54 billion, a P/E ratio of 565.77, a price-to-earnings-growth ratio of 27.05 and a beta of 1.51.
Datadog (NASDAQ:DDOG – Get Free Report) last issued 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. The firm had revenue of $1.12 billion for the quarter, compared to analysts’ expectations of $1.08 billion. Datadog had a net margin of 4.48% and a return on equity of 5.67%. The company’s revenue for the quarter was up 35.6% on a year-over-year basis. During the same period in the previous year, the firm posted $0.46 EPS. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. Research analysts anticipate that Datadog, Inc. will post 0.7 earnings per share for the current fiscal year. Insider Activity at Datadog In other Datadog news, CEO Olivier Pomel sold 127,141 shares of the firm’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $286.71, for a total value of $36,452,596.11. Following the completion of the transaction, the chief executive officer directly owned 612,747 shares in the company, valued at $175,680,692.37. This trade represents a 17.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Alexis Le-Quoc sold 53,912 shares of the firm’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $253.36, for a total value of $13,659,144.32. Following the completion of the transaction, the chief technology officer owned 509,805 shares of the company’s stock, valued at approximately $129,164,194.80. This represents a 9.56% 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. Insiders have sold 1,011,988 shares of company stock valued at $245,906,996 over the last three months. Insiders own 6.48% of the company’s stock.
Wall Street Analyst Weigh In A number of equities analysts recently weighed in on DDOG shares. KeyCorp upped their target price on shares of Datadog from $225.00 to $320.00 and gave the stock an “overweight” rating in a research note on Thursday, July 16th. Robert W. Baird set a $300.00 price target on Datadog in a research note on Friday, August 7th. BMO Capital Markets set a $300.00 price target on Datadog in a report on Friday, August 7th. Scotiabank upped their price objective on Datadog from $275.00 to $285.00 and gave the stock an “outperform” rating in a research report on Friday, August 7th. Finally, DA Davidson reiterated a “buy” rating and set a $315.00 price objective on shares of Datadog in a report on Friday, August 7th. Two analysts have rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $277.73.
Get Our Latest Stock Analysis on Datadog
About Datadog (Free Report)
Datadog, Inc is a software company that provides a cloud-based monitoring, observability and security platform. Its services help organizations collect, analyze and visualize data from applications, infrastructure, networks, databases and other technology environments, enabling them to identify performance issues, manage incidents and improve digital services.
The company’s product offerings include infrastructure monitoring, application performance monitoring, log management, database and network monitoring, real user and synthetic experience monitoring, cloud security, software supply chain security, incident management and workflow automation.
Further Reading Five stocks we like better than Datadog Could Nike’s Brutal Sell-Off Finally Be Running Out of Steam? The AI Buildout Needs Power It Cannot Get: 4 Energy Stocks Already Have It McDonald’s Is Undergoing a Massive New Growth Strategy. Can It Win Back Consumers? MGM Resorts Stock Sinks After Diller Deal Collapse: Overreaction or Warning? Want to see what other hedge funds are holding DDOG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Datadog, Inc. (NASDAQ:DDOG – Free Report).
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Datadog uvádí, že mezinárodní trhy tvořily 27 % tržeb za první polovinu roku 2026 a růst je silný hlavně v LatAm. Celoroční tržby čeká na 4,45–4,47 miliardy USD, což je meziročně o 30 % více.
Key Takeaways Datadog is expanding globally, with international markets contributing 27% of first-half 2026 revenues.Datadog sees growth accelerating across regions, with particularly strong execution in Latin America.Datadog expects 2026 revenues of $4.45-$4.47 billion, up 30%, as international adoption expands. Datadog (DDOG - Free Report) is expanding its international footprint to capture greater platform adoption outside North America, particularly across EMEA and APAC, creating another potential avenue for revenue growth. International markets contributed about 27% of total revenues in the first six months of 2026, while Datadog continues to invest in geographic expansion and maintains sales operations in Amsterdam, Dublin, London, Paris, Seoul, Singapore, Sydney, and Tokyo. The company views international expansion as a significant long-term growth opportunity, supported by its subscription-based revenue model.
Datadog’s international business is already contributing meaningfully to revenues, while the company said it is seeing growth acceleration across regions and particularly strong execution in LatAm. Its subscription model, which includes primarily monthly, annual and multi-year agreements, can support recurring revenues as international customers adopt the platform and expand their usage.
However, converting this opportunity into higher revenues will depend on effective execution. Datadog expects international activities to require significant management attention and financial resources, and acknowledges that expansion efforts may hurt operating results in the near term. The company also faces risks from slower cloud adoption, political and economic changes, regulatory and privacy rules, higher compliance costs and currency fluctuations. Establishing relationships with new local partners will also be important for entering certain markets.
Overall, Datadog’s expanding international presence could provide an additional path for revenue growth as the company increases platform adoption across global markets. Management expects full-year 2026 revenues of $4.45-$4.47 billion, representing 30% year-over-year growth. While the guidance reflects the company’s total business, continued international adoption could complement its broader revenue growth and provide an additional source of top-line expansion.
Global Observability Rivals Expand Their ReachDynatrace (DT - Free Report) is widening its reach through large enterprise wins and a robust global pipeline. First-quarter fiscal 2027 results saw EMEA rebound strongly, while an eight-figure new-logo win came from one of Latin America’s largest financial institutions. DT’s open, interoperable platform and AI observability capabilities strengthen its international proposition. This positions Dynatrace to compete with Datadog as global customers consolidate observability tools.
Cisco (CSCO - Free Report) is extending its global reach through broad enterprise and service-provider demand. The company reported fiscal fourth-quarter product-order growth across every geography — 44% in the Americas, 25% in EMEA and 19% in APJC — and said security and observability should accelerate in fiscal 2027. With Splunk and expanded observability offerings, CSCO can challenge Datadog globally, while Cisco’s scale gives it reach across enterprise environments.
DDOG’s Share Price Performance, Valuation & EstimatesShares of DDOG have surged 89% year to date, outpacing the broader Zacks Computer and Technology sector, which has returned 21.8%.
Image Source: Zacks Investment Research
From a valuation perspective, DDOG appears overvalued, trading at a trailing 12-month (TTM) P/S ratio of 24.03, significantly higher than the Internet – Software industry average of 5.88. The company carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DDOG’s 2026 earnings is currently pegged at $2.52 per share, unchanged over the past 30 days but up 4.56% over the past 60 days. The company reported earnings of $2.05 per share in 2025.
Image Source: Zacks Investment Research
Datadog stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fortinet ve 2. čtvrtletí zvýšil tržby o 26 % na 2,05 miliardy USD a zvýšil výhled tržeb pro rok 2026 na 8,02–8,18 miliardy USD. Datadog rostl o 36 % na 1,12 miliardy USD, ale čeká ho tlak po snížení počtu uživatelů u velkého zákazníka.
Key Takeaways Fortinet posted 26% revenue growth, 33% billings growth and $966M in free cash flow in Q2 2026.FTNT raised 2026 revenue guidance to $8.02-$8.18B, with 19% growth at the midpoint.Datadog's Q2 revenues grew 36%, but a major customer reduction may pressure near-term growth. Fortinet Inc. (FTNT - Free Report) is a leading cybersecurity provider focused on secure networking, firewalls, SASE and AI-driven security operations. Datadog, Inc. (DDOG - Free Report) offers a cloud-native observability and security platform that helps enterprises monitor and protect applications, infrastructure and increasingly AI workloads.
Both companies are positioned to benefit from rising enterprise spending on cybersecurity, cloud migration and AI infrastructure. The comparison is particularly timely after strong second-quarter 2026 results, as both companies have demonstrated potential for future top-line growth. Their strong growth profiles but distinct security strategies make FTNT and DDOG worth comparing for investors seeking exposure to enterprise security.
The Case for FTNT StockFortinet is positioned to benefit from rising enterprise spending on cybersecurity as cloud migration, AI deployment and distributed infrastructure expand attack surfaces. Its SASE Firewall combines firewall, SD-WAN and SASE capabilities on a single FortiOS platform, supporting security across data centers, cloud environments and remote users. Fortinet says its approach allows both cloud and sovereign, on-premises SASE deployment, giving customers flexibility around performance, data residency and compliance.
The growth opportunity is supported by Fortinet's large installed base and expanding portfolio. The company has more than 900K lifetime customers, 110K partners and $8.6 billion in LTM billings. Its second-quarter presentation identifies a $148 billion 2029 SASE Firewall TAM, with a 13% 2025-2029 CAGR, while AI security represents a $172 billion opportunity. The company is also gaining traction in customer deployments. A cloud provider selected Fortinet to secure generative-AI data centers in an eight-figure deal, while a global pharmaceutical company signed a seven-figure FortiSASE deal covering more than 45K users.
Second-quarter 2026 results demonstrate strong momentum. Revenues increased 26% to $2.05 billion, product revenues jumped 52% to $773 million, and billings rose 33% to $2.37 billion. FortiSASE billings grew more than 100%, while Unified SASE billings increased 35%, and free cash flow reached $966 million, with a 38% non-GAAP operating margin.
Fortinet is also deepening its AI-security ecosystem through collaborations with Intel, Anthropic, OpenAI and NVIDIA. Its portfolio includes Lacework FortiCNAPP, adding to its broader cloud-security capabilities.
FTNT's combination of recurring services, strong cash generation, broad customer reach and integrated SASE/AI security provides multiple avenues for growth. Fortinet raised its 2026 revenue outlook to $8.02-$8.18 billion, representing 19% year-over-year growth at the midpoint. Investors should also monitor competition, the timing of large enterprise deals and the risk that technological changes, including advances in AI, could affect product competitiveness.
The Zacks Consensus Estimate for FTNT’s 2026 earnings is pegged at $3.42 per share, up by 2 cents over the past 30 days, implying approximately 23.9% year-over-year growth.
Image Source: Zacks Investment Research
The Case for DDOG StockDatadog offers investors exposure to rising enterprise spending on cloud migration, cybersecurity and AI workloads through its AI-powered observability and security platform. Its unified SaaS platform integrates infrastructure monitoring, application performance, log management, cloud security and other capabilities, allowing customers to secure and monitor their technology stacks from a common platform. This creates an opportunity for Datadog to expand revenues as customers add workloads and adopt additional products across their technology environments.
DDOG's customer base provides a meaningful expansion opportunity. The second quarter ended with approximately 33,400 customers, including 4,720 customers generating at least $100,000 in ARR, up from 3,850 a year earlier. These larger customers contributed about 91% of ARR, while adoption of four or more products increased to 58% from 52%. Its security portfolio includes Cloud Security, Code Security, Cloud SIEM and Data Security, strengthening its positioning as enterprises consolidate monitoring and security workloads.
Recent customer wins reinforce this strategy. A South American bank signed a seven-figure annualized deal and adopted Cloud SIEM and Data Security, while a Fortune 100 health insurer expanded toward 19 Datadog products, citing HIPAA compliance, PII handling and Cloud SIEM as differentiators. A multiyear deal worth more than $30 million in TCV also displaced four existing tools.
Financially, second-quarter 2026 revenues increased 36% to $1.12 billion, while free cash flow reached $279 million. Datadog guided for 2026 revenues of $4.45-$4.47 billion.
However, competition remains intense, with Datadog facing established vendors, cloud-provider solutions and lower-priced alternatives. Security breaches, service disruptions, changing privacy regulations, AI-related risks and reduced enterprise IT spending could also pressure growth.
The Zacks Consensus Estimate for DDOG’s 2026 earnings is currently pegged at $2.52 per share, implying approximately 22.9% year-over-year growth. Earnings estimates have remained stable over the past 30 days.
Image Source: Zacks Investment Research
Stock Performance: FTNT vs. DDOGOver the past three months, shares of FTNT have gained 18.4% compared with DDOG’s 11.1% rise. Fortinet’s outperformance is backed by a more favorable near-term execution narrative, with accelerating billings, robust product demand, strong cash generation and raised 2026 guidance.
By comparison, DDOG continues to post strong growth and AI momentum, but management flagged a major customer’s user reduction beginning in the third quarter of 2026, creating a near-term growth consideration.
3M Price Performance Comparisons
Image Source: Zacks Investment Research
Valuation: FTNT Is Cheaper Than DDOGFortinet’s valuation is relatively more moderate than Datadog’s despite both stocks carrying a Value Score of F. FTNT trades at a 17.22X trailing 12-month Price/Sales multiple, compared with 22.92X for DDOG. FTNT’s low multiple indicates that there is strong upside potential for higher profits if growth remains intact.
Image Source: Zacks Investment Research
ConclusionFortinet and Datadog both offer strong exposure to cybersecurity, cloud migration and AI-driven spending. FTNT combines faster billings growth, robust free cash flow, raised 2026 guidance, a broad installed base and a lower Price/Sales multiple. DDOG continues to deliver strong revenue growth and expanding product adoption, but faces near-term customer-related pressure.
Given these factors, FTNT seems a better pick for investors than DDOG right now. While Fortinet sports a Zacks Rank #1 (Strong Buy) at present, Datadog has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Datadog ve 2. čtvrtletí zvýšil tržby o 36 % na 1,12 miliardy USD a počet zákazníků s ročními opakovanými tržbami nad 100 000 USD vzrostl na zhruba 4 720. Firma zároveň uvedla, že výhled počítá s nižším využitím ze strany svého největšího zákazníka.
Key Takeaways Datadog's $100,000-plus customer base rose 23% to about 4,720 in Q2 2026, fueling enterprise growth.AI adoption deepens, with 750-plus AI-native customers and MCP tool calls quadrupling quarter over quarter.Datadog posted 36% revenue growth, while guidance reflects a usage reduction from its largest customer. Datadog's (DDOG - Free Report) enterprise customer base is expanding at a pace that stands out even in a crowded observability and security software market. In the second quarter of 2026, the company's enterprise new logo annualized bookings more than doubled year over year, while the number of customers generating $100,000 or more in annual recurring revenue climbed to about 4,720, a 23% increase from roughly 3,850 a year prior. Total customer count rose to approximately 33,400 from 31,400. This broadening of large-account relationships is unfolding alongside deeper product adoption, as Datadog continues to layer AI-driven observability and security capabilities, including Bits Code, Bits Chat and Bits Agent Builder, all reaching general availability in the quarter, onto its core monitoring platform.
Over 750 AI-native customers now rely on Datadog to monitor their tech stacks, and all 10 of the largest AI companies are counted among its customers. Management also pointed to a sharp rise in agentic activity, with MCP tool calls quadrupling quarter over quarter, alongside expanding use of newer offerings such as Cloud SIEM, Data Security and GPU monitoring within larger enterprise accounts.
The recent enterprise momentum builds on the second quarter in which revenues grew 36% year over year to $1.12 billion, ahead of the company's guidance. Non-GAAP operating margin reached 23%, up from 20% a year earlier, and free cash flow rose to $279 million from $165 million. Remaining performance obligations reached $3.47 billion, up 43% year over year, while current RPO grew roughly 40%, suggesting that contracted revenue visibility remains solid even as usage-based pricing introduces some quarter-over-quarter variability.
Guidance reflects both the opportunity and its limits. Datadog's third-quarter revenue outlook of $1.135 billion to $1.145 billion and full-year range of $4.45 billion to $4.47 billion embed a previously flagged usage reduction from its single largest customer, a reminder that concentrated accounts can introduce volatility even as the broader enterprise base expands. Full-year non-GAAP operating income guidance of $1.01 billion to $1.03 billion points to continued margin discipline. Balanced against this is elevated GAAP operating expense growth, driven partly by the recent Adaptive ML acquisition aimed at bolstering AI research capabilities — an investment that trades near-term profitability for longer-term product differentiation.
Rival Software Firms See Similar Enterprise MomentumDynatrace (DT - Free Report) and Elastic (ESTC - Free Report) , two other listed observability and monitoring companies, are reporting comparable enterprise expansion trends. Dynatrace posted record new-logo annual recurring revenue growth of more than 160% in its most recent quarter, while total ARR reached $2.14 billion, up 17% year over year. Elastic, meanwhile, grew its $100,000-plus ACV customer cohort past 1,800 accounts, its largest quarterly addition to that tier on record, alongside 27% remaining performance obligation growth. Both Dynatrace and Elastic cite AI-driven workload complexity as a key demand driver, a theme that mirrors Datadog's enterprise trajectory, even as each company's growth rates and cohort sizes differ.
DDOG’s Share Price Performance, Valuation & EstimatesShares of DDOG have surged 74.7% year to date, outperforming the broader Zacks Computer and Technology sector's growth of 17%.
DDOG’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation perspective, DDOG appears overvalued, trading at a forward price-to-sales ratio of 16.04, significantly higher than the Internet – Software industry average of 4.2. The company carries a Value Score of F.
DDOG’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DDOG’s 2026 earnings is currently pegged at $2.52 per share, suggesting an increase of 0.4% over the past 30 days.
Datadog stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CEO společnosti Datadog Olivier Pomel prodal 89 497 akcií za 18 602 846,42 USD v rámci předem připraveného plánu 10b5-1, čímž snížil svůj podíl o 13,24 %.
Datadog, Inc. (NASDAQ:DDOG – Get Free Report) CEO Olivier Pomel sold 89,497 shares of the business’s stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $207.86, for a total transaction of $18,602,846.42. Following the completion of the sale, the chief executive officer owned 586,416 shares in the company, valued at $121,892,429.76. The trade was a 13.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Olivier Pomel also recently made the following trade(s):
On Wednesday, September 2nd, Olivier Pomel sold 26,331 shares of Datadog stock. The shares were sold at an average price of $212.90, for a total transaction of $5,605,869.90. On Wednesday, August 19th, Olivier Pomel sold 47,054 shares of Datadog stock. The stock was sold at an average price of $235.49, for a total transaction of $11,080,746.46. On Wednesday, August 5th, Olivier Pomel sold 127,141 shares of Datadog stock. The stock was sold at an average price of $286.71, for a total transaction of $36,452,596.11. On Thursday, July 23rd, Olivier Pomel sold 47,054 shares of Datadog stock. The shares were sold at an average price of $244.79, for a total value of $11,518,348.66. On Tuesday, June 16th, Olivier Pomel sold 84,698 shares of Datadog stock. The shares were sold at an average price of $232.30, for a total value of $19,675,345.40. Datadog Price Performance Shares of NASDAQ:DDOG opened at $221.21 on Friday. The company has a market capitalization of $79.43 billion, a PE ratio of 451.46, a price-to-earnings-growth ratio of 21.66 and a beta of 1.49. The company has a debt-to-equity ratio of 0.23, a quick ratio of 3.20 and a current ratio of 3.20. The stock has a fifty day moving average of $245.59 and a 200-day moving average of $196.67. Datadog, Inc. has a one year low of $98.01 and a one year high of $292.72.
Datadog (NASDAQ:DDOG – Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.65 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.58 by $0.07. Datadog had a return on equity of 5.67% and a net margin of 4.48%.The business had revenue of $1.12 billion for the quarter, compared to analysts’ expectations of $1.08 billion. During the same period in the previous year, the firm posted $0.46 EPS. The company’s quarterly revenue was up 35.6% on a year-over-year basis. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. As a group, equities analysts anticipate that Datadog, Inc. will post 0.71 EPS for the current fiscal year. Institutional Investors Weigh In On Datadog Institutional investors have recently made changes to their positions in the company. California State Teachers Retirement System lifted its position in shares of Datadog by 27,002.8% in the second quarter. California State Teachers Retirement System now owns 121,189,509 shares of the company’s stock worth $31,552,901,000 after buying an additional 120,742,361 shares during the last quarter. State Street Corp boosted its position in shares of Datadog by 106.8% in the third quarter. State Street Corp now owns 13,732,777 shares of the company’s stock valued at $1,955,547,000 after acquiring an additional 7,091,075 shares during the period. Norges Bank bought a new stake in Datadog in the 4th quarter valued at $469,461,000. Invesco Ltd. grew its position in Datadog by 119.2% during the third quarter. Invesco Ltd. now owns 4,075,721 shares of the company’s stock worth $580,383,000 after buying an additional 2,216,402 shares in the last quarter. Finally, Employees Provident Fund Board acquired a new stake in Datadog during the fourth quarter worth about $251,582,000. 78.29% of the stock is currently owned by institutional investors and hedge funds.
Trending Headlines about Datadog Here are the key news stories impacting Datadog this week:
Positive Sentiment: Wedbush upgraded Datadog to “strong buy,” following its initial “outperform” rating and a $275 price target—about 24% above the referenced share price. The broader analyst consensus remains “moderate buy,” with an average target of $276.32. Zacks analyst upgrade article Positive Sentiment: AI coding agents may generate more software changes, failures and operational complexity, increasing the need for monitoring, security and analytics. This could expand Datadog’s addressable market rather than reduce it as companies adopt AI at scale. AI agents and monitoring market article Positive Sentiment: Datadog’s latest quarterly results showed strong operating momentum: revenue rose 35.6% year over year to $1.12 billion, exceeding expectations, while earnings per share of $0.65 topped the $0.58 consensus estimate. The company guided to third-quarter fiscal 2026 EPS of $0.63–$0.65 and full-year EPS of $2.50–$2.54. Neutral Sentiment: Brokerage opinions remain unusually broad, ranging from Goldman Sachs’ $158 “sell” target to several buy or outperform targets near $300. This highlights both strong growth expectations and significant disagreement over valuation. Negative Sentiment: CEO Olivier Pomel sold 89,497 shares worth approximately $18.6 million under a pre-arranged Rule 10b5-1 plan, reducing his direct holdings by 13.24%. While scheduled selling is not necessarily a bearish signal, repeated insider sales can pressure sentiment. Negative Sentiment: Baron Fifth Avenue Growth Fund trimmed its Datadog position during the second quarter. Additionally, the stock’s very high earnings multiple—above 450 times trailing earnings—leaves it vulnerable to disappointment if growth slows or AI monetization takes longer than expected. Analysts Set New Price Targets DDOG has been the subject of a number of analyst reports. Capital One Financial upped their price objective on shares of Datadog from $217.00 to $268.00 and gave the company an “overweight” rating in a research note on Wednesday, June 17th. Citigroup lifted their target price on shares of Datadog from $300.00 to $305.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Citizens Jmp lifted their target price on shares of Datadog from $225.00 to $311.00 and gave the stock a “market outperform” rating in a research report on Monday, July 20th. Royal Bank Of Canada restated an “outperform” rating and set a $280.00 price target on shares of Datadog in a report on Thursday, July 16th. Finally, Wedbush started coverage on shares of Datadog in a research report on Friday. They issued an “outperform” rating and a $275.00 price target for the company. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $276.66.
Read Our Latest Research Report on DDOG
Datadog Company Profile (Get Free Report)
Datadog, Inc (NASDAQ:DDOG) is a cloud-based software company that provides monitoring, observability, security and analytics tools for modern applications and information technology environments. Its platform helps organizations collect, correlate and analyze data from servers, databases, applications, containers, networks and cloud services in a unified environment.
The company’s products include infrastructure monitoring, application performance monitoring, log management, real user and synthetic monitoring, database monitoring, cloud security, software delivery tools, incident management and cloud cost management.
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Datadog investuje do AI, vlastních modelů a enterprise prodejního kanálu, aby rozšířil prediktivní monitoring cloudových a AI workloadů. Firma už monetizuje AI observabilitu přes Agent Observability a vidí v ní nové příjmy.
Securing AI: 5 Most-Upgraded Stocks From the Q2 Reporting SeasonDatadog NASDAQ: DDOG is investing in artificial intelligence capabilities, proprietary models and enterprise sales as it seeks to expand its observability platform’s role in monitoring increasingly complex cloud and AI workloads, Chief Financial Officer David Obstler said during a company session.
Obstler said Datadog’s collection of observability data—covering signals tied to the functioning of customer-facing applications—could become a competitive advantage as AI models improve the company’s ability to identify and predict application issues. The company recently acquired Adaptive ML, which he described as a specialist in reinforcement learning for IT management and observability.
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5 of the Most-Upgraded Stocks Over the Last Quarter Are All Software Names—Here's WhyDatadog has also established a research lab and previously released a model called Toto, according to Obstler. He said the company intends to use a combination of its proprietary data, open-source models and foundation models to develop more predictive observability capabilities.
AI vision centers on predictive monitoring and remediation Obstler described a long-term vision in which Datadog can generate more accurate real-time signals, improve application functionality and potentially support automated remediation. He said the company is not yet at that point, but its Bits product line is intended to use models and data to become more predictive.
Looking Beyond CrowdStrike? 3 AI Security Stocks Stand OutUnder the envisioned approach, customers would determine how much authority to give the platform. For certain issues, the platform could automatically remediate a problem, while for others it could provide a recommendation requiring human approval, he said.
“That has tremendous ramifications, both in terms of the speed and also the efficiency in human capital,” Obstler said.
He also said AI adoption may increase Datadog’s opportunity because the company monitors components that affect an application’s functionality. As customers build AI-enabled applications using external models, open-source models and inference infrastructure, they create more systems and activity to monitor, he said.
Datadog has begun monetizing AI observability through its Agent Observability offering, according to Obstler. He said thousands of customers are using the product and that the company is beginning to see related revenue streams.
AI-native customers show expanding use cases Obstler characterized AI-native companies as cloud-native businesses investing in modern applications, operating without legacy infrastructure and experiencing accelerated demand. Datadog is seeing strong workload growth among those customers, he said, as well as a movement from internally built, open-source or pieced-together observability systems toward Datadog’s platform.
These newer customers are also using more of Datadog’s products on average, Obstler said. While the company initially expected its primary AI opportunity to center on production inference workloads, it has also received requests from larger hyperscalers and other companies to support training and post-training workloads.
“The speed of this is such that the pre-production or late training into production is starting to merge,” Obstler said, adding that the company does not have evidence to conclude it will become “the training company.”
On customer retention, Obstler said Datadog’s gross retention has historically been in the upper 90% range, with larger enterprises at the high end. He acknowledged that some customers use a combination of Datadog and other tools, depending on the real-time requirements of particular workloads.
For its largest customer, Datadog has commitment contracts, and Obstler said that customer renewed and extended its agreement. The company has incorporated only the commitment level from that customer into its guidance, he said, because usage can vary above that amount.
Product changes target customer efficiency Obstler pointed to Infinite Cardinality Metrics, Flex Logs, Frozen Logs and Metrics without Limits as examples of product innovations designed to help customers manage data more efficiently. He said Datadog has become more focused on understanding how customers use its platform and helping them avoid processing data that does not provide sufficient value.
For Infinite Cardinality Metrics, Datadog can sort or curate certain metrics before they are fully processed, according to Obstler. He said the approach can improve customer value while reducing costs associated with processing data that may not be useful.
Datadog is also expanding access to data stored outside its platform. With Federated Logs, customers can link logs stored in systems including ClickHouse and Databricks without moving all of that data into Datadog, Obstler said. He said the strategy allows customers to retain data externally for volume, regulatory or other reasons while using Datadog’s analytics.
Obstler said Datadog believes keeping users centralized on its platform can support higher average revenue per customer, even if some data remains elsewhere. The company has also introduced related capabilities such as Data Observability Pipelines and Bring Your Own Cloud, he said.
Enterprise cloud migration remains a focus Obstler said cloud migration remains an important opportunity because substantial legacy infrastructure remains in place. He cited research-company estimates that applications in the cloud account for somewhere in the upper 20% to 30% range, while noting that some enterprises have not yet begun material cloud projects.
AI-driven technology change is increasing the urgency for enterprises to modernize applications and move them to the cloud, he said. Datadog is expanding its enterprise sales approach, including key-account coverage, named and major accounts, channel investments and data-center investments, to pursue those opportunities.
Finally, Obstler said Datadog continues to invest heavily in research and development, including in proprietary models and coding tools. He said the company is testing the productivity impact of coding agents through A/B teams with differing levels of access to those tools.
According to Obstler, Datadog has consistently invested 30% of revenue in R&D, or more than $1 billion, and is focused on using that investment to keep its integrated platform competitive against emerging point solutions.
About Datadog (NASDAQ:DDOG)Datadog, Inc NASDAQ: DDOG is a cloud-based software company that provides monitoring, observability, security and analytics tools for modern applications and information technology environments. Its platform helps organizations collect, correlate and analyze data from servers, databases, applications, containers, networks and cloud services in a unified environment.
The company's products include infrastructure monitoring, application performance monitoring, log management, real user and synthetic monitoring, database monitoring, cloud security, software delivery tools, incident management and cloud cost management.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Snowflake klesá o 5 % po 17% skoku po výsledcích, když obchodníci vybírají zisky. Firma zároveň zvýšila výhled tržeb za produkt na FY27 na 6,07 mld. USD.
Snowflake surged 17% on earnings night, then spent Friday giving it back while every benchmark around it barely budged. That split-screen moment raises a pointed question about who is actually selling and why.
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Snowflake (NYSE:SNOW | SNOW Price Prediction) is handing back part of Wednesday evening’s post-earnings pop, while enterprise software peers and the broader tape barely register a wobble. That gap between a name-specific giveback and a steady sector reads like textbook profit-taking. The Invesco QQQ Trust (NASDAQ:QQQ) is unchanged at $717.67, and the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.4% to $769.89.
Snowflake stock is down 5% to $339.60, cooling off after a one-session surge that lifted shares to a fresh multi-month high on Thursday. Meanwhile, Datadog (NASDAQ:DDOG) stock is unchanged at $214.46 as the observability peer holds its ground through Friday afternoon trading.
Profit-Taking Follows a One-Session Surge The move looks mechanical, not fundamental. Snowflake reported Q2 FY2027 results after the close on September 2, delivering non-GAAP EPS of $0.62 against a $0.447 consensus and revenue of $1.55 billion, up 35.1% year over year (YoY). Product revenue climbed 37% YoY to $1.49 billion, remaining performance obligations reached $9 billion, up 30% YoY, and net revenue retention held at 126%.
Snowflake’s management raised the company’s FY27 product revenue guide to $6.07 billion, or 36% growth, and lifted its non-GAAP operating margin guide to 14.5%. The company added 692 net new customers, up 32% YoY, its Cortex AI suite surpassed 9,100 accounts, and CoWork reached 5,800 accounts. CEO Sridhar Ramaswamy asserted, “Snowflake delivered another strong quarter, with product revenue of $1.49 billion, up 37% year-over-year, as Snowflake continues to power the enterprise AI revolution.” Snowflake stock surged 17% on the release day, and today’s pullback still leaves it up 3% over the past week.
Peer Read Confirms the Setup Datadog is a clean observability comp for a Snowflake move, and its calm trading through the session cuts against any read that enterprise software is being sold as a group. Datadog delivered its own beat on August 6, posting Q2 2026 revenue of $1.12 billion, up 35.6% YoY, and raised its full-year revenue guide to $4.45 billion to $4.47 billion. Non-GAAP operating margin expanded to 23%, and free cash flow reached $278.7 million.
With Datadog roughly flat, QQQ unchanged, and SPY only marginally lower, the Snowflake pullback registers as position unwinding rather than a reassessment of the business. Nothing about Snowflake changed overnight. Guidance held steady, disclosures were routine, and no analyst event of consequence emerged, leaving a large one-session gain to meet the natural supply of holders who had waited for exactly that gain to arrive.
The pattern isn’t new. In Q2 FY2026, Snowflake stock jumped 20% on the day of the report, then slid 6% over the following week. Post-earnings gap-fills are the norm here, and Snowflake’s operational trajectory keeps improving through them.
Session Scorecard Ticker Today Year to Date SNOW down 5% up 55% DDOG unchanged up 57% Both names have run hard in 2026. Snowflake stock is up 55% year to date (YTD), and Datadog stock is up 57% YTD. That backdrop matters. When a name this extended posts a 17% single-session pop on earnings, a giveback the following session is often the price of a crowded book meeting a natural exit. Datadog’s one-month chart tells a different story, with shares down 26% over the past month after a large-customer usage reset that management folded into guidance. Today’s steady tape under Datadog suggests investors have moved past that reset.
What to Watch Next The question price action can’t settle is whether the raised outlook deserved the size of Wednesday’s move. That answer comes with Q3 FY2027 results. Snowflake’s management guided Q3 product revenue to $1.588 billion to $1.593 billion, or 37% to 38% growth. Traders can watch for whether AI adoption keeps pulling core platform consumption higher into that report (the supplier side of that AI buildout, from power to networking, is the subject of a free report we put together here).
Anyone who bought before Snowflake’s report can treat today’s decline as normal digestion. For those who chased the pop, it’s a reminder that liquidity events aren’t information. Investors sizing new exposure to Snowflake stock here should scale their positions carefully given the YTD run and elevated near-term volatility, keeping their allocation modest until the next quarterly cadence validates the raised outlook.
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Datadog zvýšil celoroční výhled tržeb na 4,45 až 4,47 miliardy USD, i když jeho největší zákazník omezil využívání služeb. Počet klientů s ročními opakovanými tržbami nad 100 000 USD vzrostl meziročně o 23 % na zhruba 4 720.
Key Takeaways Datadog's AI suite is broadening with autonomous tools and security capabilities for agentic workloads.Datadog's $100K ARR customer base rose 23% year over year to roughly 4,720 accounts.Datadog raised 2026 revenue guidance to $4.45-$4.47 billion despite a key customer's usage reduction. Shares of Datadog (DDOG - Free Report) have surged 64.6% year to date, outperforming the broader Zacks Computer and Technology sector's growth of 15.5%, as the AI-powered observability and security platform continues to convert enterprise AI adoption into accelerating revenues.
Yet even after this sharp climb, the investment case for Datadog is not about chasing momentum. It rests on a set of fundamental drivers — expanding large-customer relationships, deepening AI-native product adoption, and a raised full-year outlook — that suggest the stock is best treated as a hold for existing shareholders rather than a fresh buy or a name to exit.
Investors already positioned in DDOG have good reason to stay put, while those still on the sidelines may be better served waiting for a more attractive entry point, given how much of the good news is already reflected in the price.
DDOG Outperforms Industry, Sector YTD
Image Source: Zacks Investment Research
AI Product Momentum Is Broadening the PlatformDatadog advanced its AI roadmap with the general availability of Bits Code, Bits Chat and Bits Agent Builder, extending its Bits AI suite toward fully autonomous incident detection, investigation and remediation. It also introduced AI Guard, a capability built to protect AI agents from prompt injection and data-poisoning attacks, addressing a security gap opening up as enterprises push more agentic workloads into production. Datadog additionally completed its acquisition of Adaptive ML, a frontier AI reinforcement-learning specialist, and was named a Leader in the Gartner Magic Quadrant for Observability Platforms for the sixth consecutive year. Together, these moves reinforce a widening platform rather than a single-product story, supporting the hold thesis even as the stock digests its year-to-date gains.
Customer Growth Remains Broad-Based, Not AI-OnlyDatadog's own disclosures point to genuinely durable demand across its full customer base rather than a narrow, AI-only bump. Management has highlighted that revenue growth among non-AI-native customers also accelerated meaningfully in the most recent quarter, indicating that core cloud-migration and modernization spend remains healthy alongside AI workloads. On the client-win front, the company reported roughly 4,720 customers with annual recurring revenues of $100,000 or more as of quarter-end, up 23% year over year, alongside a record sequential revenue increase of $115 million. That breadth across large accounts and everyday cloud customers reduces reliance on any single buyer cohort.
Raised Guidance Signals Management ConfidenceDatadog's own forward guidance, issued alongside its second-quarter 2026 results on Aug. 6, 2026, offers a more grounded, fundamentals-based read on near-term prospects than the stock chart alone does. For the third quarter of 2026, the company guided revenues to a range of $1.135 billion to $1.145 billion and non-GAAP operating income of $260 million to $270 million. For the full year, management raised its outlook to revenues of $4.45 billion to $4.47 billion, non-GAAP operating income of $1.01 billion to $1.03 billion, and non-GAAP earnings per share of $2.50 to $2.54. Notably, this guidance was raised even after factoring in a usage reduction from the company's largest customer, a sign that demand elsewhere in the customer base is more than offsetting that single account's pullback.
The Zacks Consensus Estimate for DDOG's 2026 earnings currently stands at $2.52 per share, up 4.6% over the past 30 days, compared with earnings of $2.05 per share reported in 2025. That said, the customer-concentration episode is a useful reminder that usage-based revenues can still swing with individual account behavior, a nuance that argues for patience rather than aggressive buying at current price levels.
Valuation and Competitive LandscapeFrom a valuation perspective, DDOG appears overvalued, trading at a forward price-to-sales ratio of 15.73, well above the Zacks Internet – Software industry average of 3.98, and the company carries a Value Score of F.
Datadog competes against a mix of legacy technology giants and specialized observability players, including International Business Machines (IBM - Free Report) , Cisco Systems (CSCO - Free Report) and Dynatrace Software (DT - Free Report) . IBM brings scale and deep enterprise relationships, Cisco leverages its networking footprint, and Dynatrace competes directly on AI-driven automation. Against IBM's and Cisco's broader portfolios and Dynatrace's narrower observability focus, Datadog's platform breadth remains a differentiator, even as IBM, Cisco and Dynatrace intensify AI-native monitoring investment.
Investors may still hold despite the premium valuation because accelerating large-customer growth and raised full-year guidance suggest fundamentals are catching up to the multiple. Holding through the run is reasonable too, since the gains largely reflect improving operating leverage and cash-flow growth rather than sentiment.
DDOG’s Valuation Looks Steep
Image Source: Zacks Investment Research
ConclusionDatadog's fundamentals, broadening AI product adoption, resilient large-customer growth and an upwardly revised full-year outlook paint a picture of a durable, expanding platform rather than a stock riding a temporary wave. At the same time, a stretched valuation, a soft Value Score and lingering customer-concentration risk argue against adding aggressively after such a steep run. For current shareholders, the balance of evidence favors holding and letting the underlying business continue to compound its growth through disciplined execution; for prospective buyers watching from the sidelines, waiting patiently for a calmer, more attractive entry point remains the more prudent near-term path forward. Datadog stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Datadog hlásí silnější přijetí více produktů: k 30. červnu 2026 používalo 58 % zákazníků alespoň čtyři a 37 % šest či více. Real User Monitoring překonal 200 milionů USD v ARR a meziročně rostl o více než 50 %.
Key Takeaways Datadog saw 58% of customers use at least four products, while 37% used six or more as of June 2026.A major online media company signed a multiyear Datadog deal worth more than $30 million in contract value.Datadog's Real User Monitoring topped $200 million in ARR and grew more than 50% year over year. Datadog’s (DDOG - Free Report) multi-product strategy is gaining traction; a growing number of customers are adopting its additional products, thereby creating further opportunities to increase revenues from existing customers. As of June 30, 2026, 58% of customers used at least four Datadog products, up from 52% a year earlier, while the share using six or more rose to 37% from 29%; those using 10 or more nearly doubled to 13% from 7%. Datadog's land-and-expand model supports this expansion, as management notes that the company typically lands customers with two or more products and then expands from there.
The strategy is also translating into larger customer relationships. A South American bank consolidated onto 11 Datadog products and is adding security offerings, while a Fortune 100 health insurer is expanding to 19 products. A major online media company signed a multiyear deal worth more than $30 million in total contract value after standardizing on Datadog and adopting products beyond core observability, including Product Analytics, CI Visibility, Data Observability and Cloud Cost Management.
Datadog's expanding product footprint is creating more opportunities to deepen existing customer relationships. RUM, or Real User Monitoring, surpassed $200 million in ARR and grew more than 50% year over year, with customers increasingly using it alongside Product Analytics. Together, rising multi-product adoption, larger platform deployments and growth in newer offerings could help Datadog generate more revenues from its existing customer base.
The Zacks Consensus Estimate projects year-over-year total revenue growth of 28.9% in 2026, highlighting the company's growth potential.
DDOG Faces Stiff Competition From Dynatrace & CiscoDynatrace (DT - Free Report) and Cisco (CSCO - Free Report) are broadening their unified platforms to encourage tool consolidation and deeper customer adoption, intensifying competition for the same expansion opportunities underpinning DDOG’s multi-product strategy.
Dynatrace is competing with DDOG through an end-to-end observability platform designed to drive broader adoption and consolidation. DT says customers often expand quickly, with significant cross-sell and upsell opportunities, while log-management growth and AI observability create additional consumption. DT’s 110% NRR reinforces the expansion opportunity.
Cisco challenges DDOG through a broader technology portfolio spanning networking, security and observability. CSCO says more than half of customers buy both campus and data-center networking, while Splunk integration is generating whole-portfolio agreements. Cisco’s unified cloud control further strengthens cross-product adoption by providing a single management plane across various products.
DDOG’s Share Price Performance, Valuation & EstimatesShares of DDOG have surged 66.1% year to date, outperforming the broader Zacks Computer and Technology sector's growth of 15.7%.
DDOG’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation perspective, DDOG appears overvalued, trading at a forward price-to-sales ratio of 15.93, significantly higher than the Internet – Software industry average of 3.93. The company carries a Value Score of F.
DDOG’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DDOG’s 2026 earnings is currently pegged at $2.52 per share, an increase of 4.6% over the past 30 days. The company reported earnings of $2.05 per share in 2025.
Image Source: Zacks Investment Research
Datadog stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Datadog hlásí, že zákazníci s ARR nad 100 000 USD vzrostli meziročně o 23 % na zhruba 4 720 a tvoří 91 % celkového ARR. Firma zároveň čeká tržby za 3. čtvrtletí fiskálního roku 2026 ve výši 1,135–1,145 miliardy USD.
Key Takeaways Datadog's $100,000-plus ARR customers rose 23% to about 4,720, contributing 91% of total ARR.Enterprise new-logo bookings more than doubled, while new customers drove about 30% of Q2 revenue growth.Datadog expects Q3 2026 revenues of $1.135-$1.145 billion as customers expand platform usage. Datadog (DDOG - Free Report) is seeing strong growth in its large customer base, with customers generating at least $100,000 in ARR rising 23% year over year to approximately 4,720 as of June 30, 2026. These accounts contributed about 91% of total ARR, up from 89% a year earlier, strengthening the company’s high-value recurring revenue base.
Datadog is also gaining momentum in enterprise sales. New-logo annualized bookings in the enterprise segment more than doubled year over year, while new customers contributed about 30% of year-over-year revenue growth in the second quarter. The company’s AI customer base is also becoming more valuable, with more than 750 AI customers, including 31 spending over $1 million annually and eight spending over $10 million annually.
Importantly, large customers are expanding their use of the platform. A Fortune 100 insurer is expected to use 19 Datadog products, while a major online media company signed a multiyear deal worth more than $30 million in TCV. Datadog’s low-120% net revenue retention also reflects continued expansion from existing customers.
Looking ahead, Datadog expects third-quarter 2026 revenues of $1.135-$1.145 billion, suggesting continued momentum following the strong second-quarter performance. The outlook provides further support for the company’s growth trajectory as its large customer base expands and existing customers increase platform usage.
Taking a Look at DDOG’s CompetitorsThe customer base remains a key battleground in observability, with Datadog, Dynatrace and Elastic pursuing different strategies to attract, retain and expand enterprise customers.
Dynatrace (DT - Free Report) competes with Datadog’s broader 33,400-customer base through an enterprise-focused strategy, adding 122 new logos and achieving more than 160% new-logo ARR growth. Dynatrace’s unified AI-powered observability, open interoperability and platform-consolidation approach support larger customer lands, while average ARR per customer exceeds $500,000. Dynatrace’s mid-90s gross retention and 110% NRR strengthen expansion opportunities.
Elastic’s (ESTC - Free Report) growing base of high-value customers strengthens its competitive position against Datadog, with more than 1,720 customers exceeding $100,000 ACV and over 240 above $1 million. Elastic emphasizes multiyear commitments without material changes in discount practices, while AI, search, security and observability broaden its opportunity. The company’s data gravity, context platform and specialized agents support consolidation, helping Elastic deepen customer relationships.
DDOG’s Share Price Performance, Valuation & EstimatesShares of DDOG have surged 77.2% year to date, outperforming the broader Zacks Computer and Technology sector's growth of 18.3%.
DDOG’s YTD Price Performance
Image Source: Zacks Investment Research
Datadog trades at a premium with a Price-to-Book (P/B) ratio of 19.64 compared to the broader Zacks Internet – Software industry's multiple of 5.01. DDOG carries a Value Score of F.
DDOG’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DDOG’s 2026 earnings is currently pegged at $2.43 per share, increased by 2 cents over the past 30 days. The company reported earnings of $2.05 per share in 2025.
Image Source: Zacks Investment Research
Datadog stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Datadog uvedl, že růst táhnou širší platforma, zisk podílu na trhu a silnější poptávka po AI a modernizaci technologií. Ve čtvrtletí mezikvartálně přidal 115 milionů USD tržeb.
3 of the Market's Most-Upgraded Tech Stocks Right NowDatadog NASDAQ: DDOG Chief Financial Officer David Obstler said the company’s recent growth has been supported by a broader product platform, market-share gains and expanding demand across customer sizes and geographies. In a conference discussion with Canaccord Genuity technology analyst Kingsley Crane, Obstler said the company has benefited from customers modernizing technology stacks and preparing infrastructure for artificial intelligence workloads.
Crane characterized Datadog’s latest quarter as featuring 36% growth at a $1.1 billion scale, accelerating from 32%, and noted that growth had accelerated over the past five quarters. Obstler said the results reflected investments in the platform that have expanded the product portfolio and enabled greater cross-selling.
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Datadog’s Drop Says More About Expectations Than Earnings“We’re seeing strength across all the way from SMB to enterprise and globally,” Obstler said. “Anytime we have a re-platforming and a modernization of tech stack, that’s complemented Datadog in their growth.”
Platform adoption and customer expansion Obstler said growth has not been limited to AI-native companies. He said enterprise customers have accelerated adoption of the Datadog platform, driven by demand for integrated, real-time observability and security capabilities.
5 Tech Stocks Holding Their Ground Through the AI Trade PullbackHe pointed to what he described as substantial market-share gains, saying Datadog added $115 million in revenue sequentially during the last quarter. The company’s platform approach appeals to customers seeking a “single pane of glass” for monitoring and security, he said.
Datadog’s customer expansion model generally unfolds over multiple years, according to Obstler. Customers often initially use other vendors, then add Datadog products as existing contracts come up for renewal. The company sells capacity through a credit-based model, allowing customers to use different products on the platform.
Obstler said cohorts signed five years ago are continuing to expand, supported by product additions and vendor consolidation. He cited net retention in the low 120% range as evidence of the durability of that expansion motion.
Customers increasingly adopt more Datadog products over time, rather than switching all tools at once. Modern and mission-critical workloads have increasingly been directed to Datadog for monitoring, Obstler said. Datadog works with customers on capacity planning under contracts that generally span at least one year and can extend to three years. AI-native customers and production workloads Obstler said AI-native companies represent a smaller percentage of Datadog’s annual recurring revenue than cloud-native customers did during the COVID-era technology boom, but the group is growing quickly. He said Datadog had more than 750 AI-native customers, with more than 30 generating at least $1 million in annual recurring revenue.
Those companies include model providers, database providers, GPU providers and companies serving specific industry verticals, he said. While Obstler acknowledged that AI-native markets could be volatile, he described the segment as an endorsement of Datadog’s position in modern technology infrastructure.
He said AI-related monitoring demand is increasingly shifting from training and research into production environments. Datadog is positioned to monitor applications using large language models, agents, coding agents and GPU infrastructure, he said. The company is also beginning to address more training-related use cases.
“We basically set that up, and we’ve been seeing very good growth in that area,” Obstler said of AI monitoring. He added that Datadog monetizes these offerings through usage-based pricing tied to data consumed, investigations and related activity.
Bits AI and product investment Obstler also discussed “AI for Datadog,” referring to the company’s use of AI within its own platform. He said the Bits AI product is designed to help users automate investigations, analyze issues, route cases and eventually support more self-remediation.
The company has broadened Bits AI beyond reliability engineering investigations into development and security use cases, Obstler said. Datadog has tested pricing approaches, moving from a per-investigation model toward token-based pricing in some areas.
Datadog’s data sets, platform integration and existing use of machine learning for analytics provide an advantage in observability-specific AI, Obstler said. He said the company’s vision is to provide specialized intelligence that can identify problems and, in certain instances, enable customers to approve automated remediation.
Obstler said Datadog plans to continue investing in both sales capacity and research and development. Sales capacity has expanded globally at roughly the same pace as revenue, he said. While the company expects a greater share of R&D resources to shift toward tokens and AI tools over time, he said management is focused on using those tools to develop products rather than pursuing AI investment at the expense of margins.
Competitive strategy Addressing competition from companies expanding their own platforms, including security and data-focused vendors, Obstler said Datadog remains focused on observing software in production and on adjacent opportunities where its observability platform creates synergies.
He cited cloud workload security, Cloud SIEM and service management as areas where Datadog can expand, while emphasizing that the company is not attempting to address every segment of the broader security market. Obstler said Datadog’s focus on modern cloud workloads, coupled with continued R&D investment, has strengthened rather than weakened its competitive position.
About Datadog (NASDAQ:DDOG)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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Datadog ve 2. čtvrtletí překonal odhady, výnosy vzrostly o 36 % na 1,12 miliardy USD a non-GAAP EPS o 41,3 % na 65 centů. Zároveň zvýšil výhled výnosů pro rok 2026 na 4,45–4,47 miliardy USD.
Key Takeaways Datadog beat Q2 expectations as revenues rose 36% to $1.12 billion and non-GAAP EPS climbed 41.3%.DDOG raised 2026 revenue guidance to $4.45-$4.47 billion and non-GAAP EPS outlook to $2.50-$2.54.Datadog serves 750 AI customers, while its expanding AI portfolio targets demand across the AI stack. Datadog (DDOG - Free Report) , the leading AI-powered observability and security platform, delivered strong second-quarter 2026 results, with both the top and bottom lines exceeding expectations. Total revenues rose 36% to $1.12 billion, while non-GAAP EPS of 65 cents rose 41.3% year over year.
Building on this momentum, Datadog raised its full-year 2026 revenue guidance to $4.45-$4.47 billion, implying approximately 30% year-over-year growth. The company also increased its non-GAAP EPS outlook to $2.50-$2.54, underscoring management’s confidence in its growth line.
Analyst sentiment remains positive, with the Zacks Consensus Estimate projecting 2026 revenues of $4.41 billion, up 28.82% year over year. The earnings estimate of $2.43 per share has also been revised upward over the past 60 days, implying 18.54% year-over-year growth and indicating expectations for continued strong financial performance, which supports the stock’s investment outlook.
Image Source: Zacks Investment Research
The bullish sentiment is also reflected in DDOG's stock performance. The company’s shares closed at $233.93 on Friday, gaining 4.64% for the session, and have surged 72% year to date. This significantly outpaces the Zacks Internet - Software industry, which has declined 3.2%, and the broader Zacks Computer and Technology sector, which has gained 18.3%.
Datadog has also outperformed its peers, including Arista Networks (ANET - Free Report) , Paycom Software (PAYC - Free Report) and Unity Software (U - Free Report) , over the same time frame. While Arista Networks and Paycom Software shares have appreciated 44% and 34.9%, respectively, Unity Software shares have fallen 2.6%, highlighting Datadog’s stronger stock market performance.
YTD Price Performance Comparison
Image Source: Zacks Investment Research
Now, the question arises: is this the right time to add this stock to your portfolio? Let us examine the key factors driving the rise in the share price, the emerging AI opportunity and valuation to assess the stock’s investment prospects.
Key Q2 Tailwinds Supporting DDOG StockDatadog’s latest results highlight sustained business momentum, driven by growing customer adoption and the expanding role of its platform in managing increasingly complex cloud and AI workloads. Strong cash generation was another key positive, with the company delivering $316 million in operating cash flow and $279 million in free cash flow during the second quarter, translating into a 25% free cash flow margin. Datadog ended the quarter with approximately $5 billion in cash, cash equivalents and marketable securities, providing a strong financial cushion to support continued investments in product innovation, strategic initiatives and potential acquisitions.
Customer growth and expansion trends also remain encouraging. Datadog ended the second quarter with roughly 33,400 customers, while the number of customers generating at least $100,000 in ARR increased 23% year over year to approximately 4,720, accounting for about 91% of total ARR. Importantly, customers are increasingly adopting multiple Datadog products: 58% now use at least four products, compared with 52% a year ago, while 13% use 10 or more products, versus 7% a year ago. RUM has also surpassed $200 million in ARR and is growing more than 50% year over year. This increasing platform adoption could support higher customer spending and strengthen retention over the long term.
Another significant area of long-term growth is platform consolidation and enterprise-level expansion. In the second quarter, Datadog’s RPO reached $3.47 billion — a 43% increase year over year — while current RPO grew by approximately 40% during the same period. The company also won several large enterprise deals, including a multiyear deal worth more than $30 million in total contract value in which a major online media company standardized on Datadog and replaced four commercial and internal tools.
Datadog is also expanding into security, data observability, cloud cost management, digital experience and Bring Your Own Cloud. These opportunities could allow the company to capture a larger share of enterprise technology spending while increasing the value of its platform beyond traditional observability.
AI Adds a New Secular Growth Driver for DDOGAI is emerging as a powerful new growth catalyst for Datadog, complementing its established secular tailwinds from cloud migration and digital transformation. As AI workloads expand cloud consumption, they are driving greater demand for Datadog’s observability platform. The company now serves more than 750 AI customers, including all 10 of the top AI leaders, while AI monitoring volumes have accelerated sharply.
The opportunity could broaden further as AI moves from model training toward inference and agentic applications. Datadog sees observability opportunities across the entire AI stack — from GPUs and infrastructure to LLMs, tool calls, applications and agent outcomes. Its expanding Datadog for AI portfolio, including Agent Observability, GPU Monitoring, Data Observability and AI Guard, positions DDOG to capture this emerging demand.
DDOG Stock Trades at a PremiumDatadog shares are trading at a premium, as suggested by a Value Score of F.
In terms of the forward 12-month price-to-sales (P/S), Datadog is trading at 16.81X, higher than the industry’s 4.05X. DDOG also trades at a higher multiple than Arista Networks (16.64X), Paycom Software (4.22X) and Unity Software (7.77X).
DDOG Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
ConclusionDatadog enters the second half of 2026 with compelling fundamental momentum. Accelerating customer adoption, expanding enterprise penetration, strong cash generation and AI-driven demand provide multiple avenues for long-term growth. The company’s ability to expand from observability into security and AI management could further increase its addressable market. These factors are expected to push the stock upward and justify a premium valuation.
Datadog currently carries a Zacks Rank #2 (Buy) and a Growth Score of A, a favorable combination that offers a strong investment opportunity per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Datadog ve 2. čtvrtletí zvýšil tržby o 36 % na 1,12 miliardy USD a non-GAAP EPS dosáhl 65 centů. Pro 3. čtvrtletí čeká tržby 1,135–1,145 miliardy USD, ale u svého největšího zákazníka počítá s nižším využitím od 3. čtvrtletí.
Key Takeaways Datadog's Q2 revenues rose 36% to $1.12 billion, while non-GAAP EPS reached 65 cents.More than 750 AI customers use Datadog, with 31 spending over $1 million annually. Datadog sees Q3 revenues of $1.135B-$1.145B after derisking lower usage at its largest customer. Datadog, Inc. (DDOG - Free Report) used its second-quarter 2026 earnings call to emphasize accelerating demand across AI and non-AI customers, while acknowledging a usage reduction at its largest customer.
Co-Founder and CEO Olivier Pomel framed AI as an additional growth driver, citing stronger cloud consumption, new observability workloads and wider adoption of Bits AI and security products.
DDOG Sees Broad-Based Growth AccelerationRevenues rose 36% year over year to $1.12 billion, while non-GAAP earnings were 65 cents per share. Revenues and earnings exceeded the Zacks Consensus Estimate of $1.08 billion and 58 cents, respectively.
CFO David Obstler said sequential revenue growth of 11% was the strongest since the second quarter of 2022, with a record $115 million added from the first quarter. Non-AI customer revenue growth accelerated to the high-20% range.
Datadog ended the second quarter with about 4,720 customers generating at least $100,000 in ARR, up from about 3,850 a year earlier.
Datadog Builds Around AI-Native DemandPomel said more than 750 AI customers use Datadog, including all 10 companies management identifies as leading AI players. Obstler added that 31 AI customers spend more than $1 million annually, including eight above $10 million.
Pomel said MCP tool calls quadrupled again sequentially and rose more than 22 times versus Q4 2025. He described observability opportunities across GPUs, models, agents and the applications those agents call.
Obstler said enterprise new-logo annualized bookings more than doubled year over year. New customers accounted for about 30% of year-over-year revenue growth, up from 25% in the first quarter.
DDOG Pushes Bits AI Deeper Into OperationsPomel said Bits AI has expanded beyond alert investigation into chat, monitoring management, coding, testing and release validation. Datadog is also rolling out AI-credit packaging as its use cases broaden.
A Bank of America analyst asked whether automation could reduce traditional observability activity. Pomel said Bits AI users are deploying more of the platform, creating more dashboards and alerts, and bringing more users into Datadog.
Pomel also said Bits Security Analyst is being separated from Datadog's SIEM so it can work with other SIEMs, widening the market for AI-driven security operations.
Datadog Derisks Largest-Customer UsageManagement disclosed a nine-figure renewal with its largest customer, but said usage will decline beginning in the third quarter. Pomel said Datadog fully derisked guidance for that customer so the account would not overshadow broader business trends.
For the third quarter, revenues are expected to be $1.135 billion to $1.145 billion, representing 28% to 29% growth, with non-GAAP earnings estimated to be 63 to 65 cents per share. Full-year revenue guidance is $4.45 billion to $4.47 billion.
A Morgan Stanley analyst pressed for renewal details and the lower usage. Pomel declined to discuss customer-specific economics, while stressing that growth excluding the largest customer has continued to accelerate.
DDOG Q&A Tests Sustainability and SpendA Goldman Sachs analyst raised customer concerns about Datadog bills. Pomel said the company must show its software saves customers money or helps them make money, and highlighted AI cost control as a growing priority.
Pomel said Infinite Cardinality Metrics is designed to reduce billing unpredictability when customers send more granular data. He tied the product to rising data volumes and more complex questions from AI applications.
A JPMorgan analyst asked whether non-AI acceleration is sustainable. Pomel said growth is largely coming from existing customers through higher volumes, cloud migration and broader product adoption. Obstler also cited expanded go-to-market capacity.
Datadog Keeps Investing Into ScalePomel closed with confidence on product development and go-to-market execution, saying Datadog has more products planned for the remainder of the year and large sales pipelines to pursue.
Obstler said R&D and go-to-market investments are producing results and positioning the company for continued execution.
DDOG's Zacks Signals Stay MixedDDOG carries a Zacks Rank #2 (Buy), alongside a Growth Score of A, Momentum Score of A and a VGM Score of B. Under the Zacks Style Scores framework, A and B are the more favorable grades, especially when paired with a Zacks Rank #1 (Strong Buy) or #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Value Score of F tempers that profile because the framework gives its strongest preference to top-ranked stocks with A or B individual Style Scores. The Zacks Rank can change as earnings estimates are revised after the reported results.
Datadog, Inc. (DDOG) Q2 2026 Earnings Call August 6, 2026 8:00 AM EDT
Company Participants
Yuka Broderick - Investor Relations
Olivier Pomel - Co-Founder, CEO & Director
David Obstler - Chief Financial Officer
Conference Call Participants
Sanjit Singh - Morgan Stanley, Research Division
Raimo Lenschow - Barclays Bank PLC, Research Division
Gabriela Borges - Goldman Sachs Group, Inc., Research Division
Michael Cikos - Needham & Company, LLC, Research Division
Aleksandr Zukin - Wolfe Research, LLC
Koji Ikeda - BofA Securities, Research Division
Samik Chatterjee - JPMorgan Chase & Co, Research Division
Howard Ma - Guggenheim Securities, LLC, Research Division
Andrew Sherman - TD Cowen, Research Division
Brad Reback - Stifel, Nicolaus & Company, Incorporated, Research Division
Ittai Kidron - Oppenheimer & Co. Inc., Research Division
Andrew DeGasperi - BNP Paribas, Research Division
Presentation
Operator
Good day, and thank you for standing by. Welcome to the Q2 2026 Datadog Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Yuka Broderick, Senior Vice President of Investor Relations. Please go ahead.
Yuka Broderick
Investor Relations
Thank you, Lauren. Good morning, and thank you for joining us to review Datadog's second quarter 2026 financial results, which we announced in our press release issued this morning. Joining me on the call today are Olivier Pomel, Datadog's Co-Founder and CEO; and David Obstler, Datadog's CFO. During this call, we will make forward-looking statements, including statements related to our future financial performance, our outlook for the third quarter and the fiscal year 2026 and related notes and assumptions, our product capabilities and our ability to capitalize on market opportunities.
The words anticipate, believe, continue, estimate, expect, intend, will and similar expressions are intended to identify forward-looking statements or similar indications of future expectations. These statements reflect our views today and are subject to a variety of
Datadog ve 2. čtvrtletí vykázal zisk 0,65 USD na akcii a výnosy 1,12 miliardy USD, obojí nad odhady. Zisk byl také vyšší než 0,46 USD na akcii před rokem.
Datadog (DDOG - Free Report) came out with quarterly earnings of $0.65 per share, beating the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.46 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +12.07%. A quarter ago, it was expected that this data analytics and cloud monitoring company would post earnings of $0.5 per share when it actually produced earnings of $0.6, delivering a surprise of +20%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Datadog, which belongs to the Zacks Internet - Software industry, posted revenues of $1.12 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.85%. This compares to year-ago revenues of $826.76 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Datadog shares have added about 108.2% since the beginning of the year versus the S&P 500's gain of 12.8%.
What's Next for Datadog?While Datadog has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Datadog was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.60 on $1.09 billion in revenues for the coming quarter and $2.42 on $4.34 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
DocuSign (DOCU - Free Report) , another stock in the same industry, has yet to report results for the quarter ended July 2026.
This provider of electronic signature technology is expected to post quarterly earnings of $1.08 per share in its upcoming report, which represents a year-over-year change of +17.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
DocuSign's revenues are expected to be $868.04 million, up 8.4% from the year-ago quarter.
Datadog na začátku obchodování klesl téměř o 18 %, i když za 2. čtvrtletí překonal odhady zisku i tržeb a zvýšil celoroční výhled. Investoři se zaměřili na zpomalení růstu tržeb ve 3. čtvrtletí.
Datadog shares DDOG dropped nearly 18% at market open on Thursday despite the cloud monitoring and analytics company reporting better-than-expected second-quarter earnings and raising its full-year financial outlook.
The sharp decline came after the stock had reached a record closing high earlier this week, with analysts pointing to profit-taking and elevated investor expectations for 2H revenue as key reasons behind the selloff.
Some market participants cited management's third-quarter guidance, which, although above Wall Street estimates, implied a notable sequential slowdown in revenue growth compared with the first half of the year, as reason behind the stock price decline.
The software company reported adjusted earnings of 65 cents per share for the second quarter, compared with 46 cents a year earlier and ahead of analysts' expectations of 58 cents, according to FactSet.
Revenue rose 36% year over year to $1.12 billion, surpassing consensus estimates of $1.08 billion.
Looking ahead, Datadog expects third-quarter adjusted earnings of between 63 cents and 65 cents per share, with revenue projected in the range of $1.135 billion to $1.145 billion.
Those figures remain above Wall Street expectations of 61 cents per share and $1.11 billion in revenue.
However, investors focused on the implied slowdown in growth after a strong first half of the year.
"Datadog just showed how expensive one quarter of deceleration can be," AInvest wrote on X.
"Q3 guidance points to roughly 29% growth. After a 94% six-month rally, the stock is down about 21% premarket. The same reset is hitting $APP (-19%), $HUBS (-23%), and $FIG (-14%). Strong results can still meet unforgiving valuations when acceleration is already priced in," the post added.
For the full fiscal year, the company raised its outlook, forecasting adjusted earnings of $2.50 to $2.54 per share and revenue between $4.45 billion and $4.47 billion.
The revised guidance is higher than its previous forecast and comfortably ahead of analysts' estimates of $2.42 per share on revenue of $4.35 billion.
Datadog has been one of the strongest-performing software stocks this year, with shares gaining more than 110% in 2026 before Thursday's decline.
The strong rally had left investors with little room for disappointment.
Evercore ISI analysts said the market reaction appeared excessive.
"The initial reaction seems a bit extreme as the company delivered solid F2Q results, and while the lack of revenue acceleration in 2H may weigh on the uber bull case, DDOG remains one of the best growth stories in software," they said.
Datadog remains closely tied to the expanding artificial intelligence market, providing monitoring and observability tools for AI chips, coding agents and cloud infrastructure.
Its customer base includes AI developers and major cloud providers such as OpenAI and Amazon Web Services.
The company also reported continued expansion among its largest customers.
Datadog ended the quarter with approximately 4,720 customers generating annual recurring revenue of more than $100,000, compared with 3,850 customers a year earlier.
Chief Executive Olivier Pomel said AI adoption continues to drive customer demand for the company's platform.
"Our customers are building and deploying with AI, and they are using the Datadog platform to observe, secure, and act on their AI-enabled solutions," Pomel said in the earnings release.
"We are innovating rapidly to help our customers manage rising complexity, and increasingly build autonomy into their operations."
SoundHound AI po výsledcích za 2. čtvrtletí vyskočila o 12 % po tržbách ve výši 61,9 mil. USD a zvýšení celoročního výhledu na 230 až 260 mil. USD. Unity Software přidala 11 %, zatímco Datadog klesl o 15 %.
Three enterprise software names are moving in opposite directions Thursday morning after earnings results. SoundHound AI (NASDAQ:SOUN) stock is up 12% to $7.23, Unity Software (NYSE:U | U Price Prediction) shares are up 11% to $39.33, and Datadog (NASDAQ:DDOG) shares are down 15% to $239.71.
The Invesco QQQ Trust (NASDAQ:QQQ) (which tracks the NASDAQ 100 index) is roughly flat, so today’s action is stock-specific. Traders are separating the winners from the losers on valuation and expectations.
SoundHound AI Rally Follows a Beat and a Raise SoundHound posted Q2 revenue of $61.9 million, beating the $52.4 million consensus estimate. Furthermore, the company’s adjusted EBITDA loss narrowed to $9.6 million.
Management raised full-year 2026 revenue guidance to $230 million to $260 million, pending the LivePerson acquisition closing before year-end. SoundHound ended the quarter with $203 million in cash and no debt.
Growth is driven by SoundHound’s OASYS agentic AI platform and enterprise wins including eight-figure multi-year Latin America contract spanning 20+ countries, seven-figure China automotive infotainment agreement, and seven-figure healthcare deal. Automotive partners Stellantis (NYSE:STLA) and Hyundai expanded live generative AI deployments.
CEO Keyvan Mohajer stated, “Our exceptional Q2 results demonstrate the momentum SoundHound is building… With our Q2 revenue now 10 times what it was when we debuted as a public company in Q2 2022, and enterprise demand for high-ROI voice and agentic AI accelerating globally, our OASYS platform and in-house model innovations position us to lead in the new era of enterprise automation.” The pending acquisition of LivePerson is expected to close before the end of 2026.
SoundHound stock had entered earnings down 36% year to date (YTD). Reddit chatter turned very bullish with a sentiment score of 82 ahead of the release.
Unity Beat and Raise Powers a Rebound Unity reported Q2 revenue of $546 million, up 24% YoY, beating $514.6 million above consensus. Adjusted EBITDA came in at $160 million at a 29% margin, up from $90 million and a 21% margin versus a year ago. Moreover, the company’s free cash flow reached $202 million.
Unity’s Q3 2026 strategic revenue guidance of $540 million to $550 million landed above the consensus estimate, with the midpoint implying 44% to 47% YoY growth. The Grow Solutions segment, home to the Unity Vector AI ad platform, grew 35% YoY to $389 million and is driving results.
CEO Matt Bromberg called it “arguably the best quarter in Unity’s history as a public company.” Unity stock had climbed 20% over the past month, and management now expects to reach GAAP profitability by Q3 2026.
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Unity also plans to retire its 2021 convertible notes in November 2026, cleaning up the balance sheet as Vector AI ramps translate into operating leverage.
Datadog Sells Off Despite Its Own Beat and Raise Meanwhile, Datadog delivered a beat and raise. Q2 revenue of $1.12 billion beat the $1.08 billion consensus estimate and grew 35.6% YoY. Also, non-GAAP EPS of $0.65 topped the $0.58 estimate, marking the fifth straight quarterly EPS beat.
Datadog’s $100,000-plus ARR customer count grew to 4,720, up from 3,850 versus a year ago. Management raised full-year 2026 revenue guidance to $4.45 billion to $4.47 billion and non-GAAP EPS to $2.50 to $2.54. Plus, Datadog’s free cash flow margin expanded to 25% from 20% from a year ago.
CEO Olivier Pomel provided a confident assessment:
Datadog delivered a strong quarter, with 36% year-over-year revenue growth, $316 million in operating cash flow, and $279 million in free cash flow. Our customers are building and deploying with AI, and they are using the Datadog platform to observe, secure, and act on their AI-enabled solutions.
The issue was expectations. Datadog stock had rallied 108% YTD and hit an intraday record above $292 the prior session. Today’s move is on track to be one of DDOG stock’s largest single-day drops on record.
What to Watch Now SoundHound holds its earnings call at 5:00 p.m. ET tonight, where the OASYS pipeline and LivePerson integration timeline could shape the next share-price move. Unity’s call was held earlier this morning at 8:30 a.m. ET, and investors can watch for whether Vector AI momentum continues translating into upside guidance and free cash flow.
For Datadog, the debate centers on multiple compression rather than business execution. The bull case rests on 35.6% growth, AI observability leadership through Bits AI and AI Guard, and expanding free cash flow margins. The bear case is a stock that ran too far, too fast into the report, with prediction sentiment turning bearish at a composite score of 36.6.
Investors can watch for whether today’s flush finds a floor before Datadog’s next major catalyst. Position sizing across all three names should reflect the volatility on display, with new exposure warranted only after the price action stabilizes.
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Datadog, Inc. (NASDAQ:DDOG) will release its second quarter earnings report before the opening bell on Thursday, Aug. 6.
Analysts expect the New York-based company to report quarterly earnings of 58 cents per share, up from 46 cents per share in the year-ago period. The consensus estimate for Datadog’s quarterly revenue is $1.08 billion. It reported $826.76 million last year, according to Benzinga Pro.
On June 30, Datadog announced it has acquired Adaptive ML.
Shares of Datadog fell 1.7% to close at $283.17 on Wednesday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying DDOG stock? Here’s what analysts think:
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Datadog zvýšil výhled tržeb za celý rok 2026 na 3,225–3,245 miliardy USD po růstu RPO o 51 % na 3,48 miliardy USD. Delší víceleté smlouvy zlepšují viditelnost budoucích tržeb.
Key Takeaways Datadog's RPO jumped 51% to $3.48 billion as multi-year contracts and longer terms improved visibility.DDOG raised 2026 revenue guidance to $3.225-$3.245 billion, citing demand and execution confidence.Enterprise clients adopting 10-plus products, strong retention and AI deployments support recurring growth. Datadog (DDOG - Free Report) is making its revenue growth more predictable as momentum in multi-year customer agreements improves revenue visibility and reinforces the durability of its subscription-based business model. During the first quarter of 2026, the company reported a 51% year-over-year increase in remaining performance obligations (RPO) to $3.48 billion, with management attributing the growth partly to a higher mix of multi-year contracts and longer contract durations. This expanding backlog provides greater visibility into future revenues, strengthening the predictability of recurring subscription revenues while reducing reliance on short-term renewals.
Datadog continues to win large enterprise expansion deals, with several customers expanding their usage across 10 or more Datadog products. Higher multi-product adoption, coupled with gross retention in the mid-to-high 90% range and net revenue retention in the low 120% range in the first quarter of 2026, supports longer-term customer commitments, increases switching costs and strengthens recurring revenue growth. AI-driven deployments are further contributing to larger enterprise engagements, expanding the company's long-term revenue opportunity.
Reflecting this momentum, management raised its full-year 2026 revenue outlook to $3.225-$3.245 billion from $3.175-$3.195 billion, underscoring confidence in customer demand and execution. While longer-duration contracts enhance revenue visibility and improve growth predictability, Datadog's ability to sustain this momentum will depend on continued customer renewals, platform expansion and healthy enterprise IT spending.
How Do Datadog's Rivals Stack Up?Dynatrace (DT - Free Report) emphasizes large enterprise platform standardization over maximizing RPO, unlike Datadog's expanding multiyear contracts. Dynatrace wins bigger end-to-end observability deals, records $1 million-plus ACV contracts in the fourth quarter of fiscal 2026 and broader platform adoption through DPS subscriptions. Dynatrace focuses on durable ARR expansion, enterprise consolidation and long-term consumption while benefiting from strategic AI-driven platform commitments rather than emphasizing deferred revenue metrics.
Snowflake (SNOW - Free Report) competes more directly with Datadog through rising RPO and multiyear enterprise commitments. In the first quarter of fiscal 2027, Snowflake reported 38% RPO growth, a new five-year AWS agreement and increasing $10 million-plus customers, supporting long-term revenue visibility. While Datadog benefits from larger multiyear observability contracts, Snowflake leverages AI-driven data platform expansion and enterprise consumption, making the company a formidable long-duration subscription competitor.
DDOG’s Share Price Performance, Valuation & EstimatesShares of DDOG have surged 68.5% over the past year, outperforming the broader Zacks Computer and Technology sector's growth of 22.8%.
DDOG’s Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, DDOG appears overvalued, trading at a trailing 12-month price-to-sales ratio of 24.92X, above the industry’s 5.27X. DDOG has a Value Score of F.
DDOG’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate projects earnings of $2.41 per share for 2026 and $2.88 for 2027, reflecting year-over-year growth of 17.56% and 19.29%, respectively.
Image Source: Zacks Investment Research
Datadog stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Datadog zakončil 1. čtvrtletí 2026 s přibližně 4 550 zákazníky s ARR nad 100 000 USD, což je meziročně nárůst z 3 770. Tito velcí klienti tvoří téměř 90 % celkového ARR.
Key Takeaways Datadog ended Q1 2026 with about 4,550 customers generating more than $100,000 in ARR.56% of customers use four or more products, while 20% use eight or more, boosting lifetime value.More than 6,500 customers use AI integrations, representing roughly 80% of Datadog's ARR. Datadog’s (DDOG - Free Report) enterprise customer base is strengthening its long-term growth trajectory by driving higher recurring revenues and deeper platform adoption. The company ended the first quarter of 2026 with approximately 4,550 customers generating more than $100,000 in annual recurring revenues (ARR), up from 3,770 a year ago. These large customers now account for nearly 90% of total ARR, highlighting the growing contribution of enterprise clients to Datadog's business.
Management also noted several seven-figure and eight-figure customer wins across industries, with many organizations replacing multiple legacy monitoring tools and expanding deployments to 10-16 Datadog products. This trend is reflected in the company's strong cross-selling performance, as 56% of customers now use four or more products, while 20% use eight or more, supporting higher customer lifetime value and durable subscription revenues.
The rapid adoption of AI is creating another growth path, with more than 6,500 customers using one or more AI integrations, representing roughly 80% of ARR. Datadog further strengthened its enterprise proposition at DASH 2026 by introducing more than 100 new AI, observability and security capabilities, including expanded Bits AI functionality and Agent Observability, which should further deepen enterprise adoption and increase wallet share.
However, the company remains dependent on continued enterprise expansion and IT spending. A slowdown in customer spending, weaker macroeconomic conditions or intensifying competition could moderate ARR growth and limit future revenue expansion. Nevertheless, Datadog's expanding enterprise footprint, strong customer retention, continuous platform innovation and the Zacks Consensus Estimate for 26.62% revenue growth in 2026 indicate that its enterprise-led growth story remains firmly intact.
How Are Competitors Faring?Dynatrace (DT - Free Report) and Elastic (ESTC - Free Report) compete with Datadog in enterprise observability, where platform breadth, enterprise expansion and customer retention drive long-term growth.
Dynatrace challenges Datadog through unified AI-powered observability, deterministic AI and its DPS licensing model that drives broader adoption and consumption. The company reported a fourth-quarter fiscal 2026 NRR of 110%, with more than 75% of ARR on its DPS licensing model and strong cross-sell potential. Dynatrace targets enterprise consolidation, autonomous operations and cloud expansion, while Datadog currently outpaces it in enterprise customer growth and retention.
Elastic competes with Datadog by combining observability, security and AI on a unified platform emphasizing consolidation and context-aware AI. The company is expanding enterprise relationships through larger multiyear commitments, $1 million-plus deals and AI-driven observability. Elastic leverages search expertise and platform consolidation to win upsell opportunities, though Datadog maintains stronger enterprise expansion and higher retention metrics.
DDOG’s Share Price Performance, Valuation & EstimatesShares of DDOG have rallied 79.9% over the past six-month period, outperforming the Zacks Internet - Software industry’s decline of 4.8% and the Zacks broader Computer and Technology sector's growth of 12%.
DDOG’s Six-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, DDOG stock is currently trading at a forward 12-month Price/Sales ratio of 18.16X compared with the industry’s 3.96X. DDOG has a Value Score of F.
DDOG’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $2.41 per share, unchanged over the past 30 days and indicating a 17.56% year-over-year increase.
Image Source: Zacks Investment Research
Datadog stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Spoluzakladatel a CTO společnosti Datadog Alexis Le-Quoc prodal 43 224 akcií za zhruba 11,5 mil. USD v rámci plánu Rule 10b5-1. Po transakci mu zůstalo 509 974 akcií.
Alexis Le-Quoc, co-founder and Chief Technology Officer of Datadog, Inc. (DDOG -3.47%), sold 43,224 shares of Class A Common Stock on July 20, 2026, for a total value of ~$11.5 million, according to an SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$11.5 millionShares sold (direct)43,224Post-transaction shares (total)509,974Post-transaction shares (directly held)509,805Post-transaction shares (indirectly held)169Post-transaction value$134.23 millionTransaction value based on SEC Form 4 weighted average sale price ($265.23); post-transaction value based on July 20, 2026 market close ($263.20).
Key questionsWhat triggered this specific liquidation of equity?
The transaction was part of a structured divestment process governed by a Rule 10b5-1 trading plan adopted on June 13, 2025. This plan facilitated the automatic exercise of 43,224 options and their immediate sale on the open market, providing the executive with liquidity while maintaining a substantial long-term stake in Datadog.How does the current holding compare to historical equity awards?
While the sale involved ~43,000 shares, Alexis Le-Quoc continues to hold a significant portfolio of company equity. This includes 509,805 shares held directly and approximately 8.4 million derivative securities, including vested and unvested awards, held both directly and through the Alexis Le-Quoc Revocable Trust.How has the stock performed relative to the transaction price?
The disposition occurred at a weighted average price of $265.23, while the one-year total return for the stock stood at 81% as of the July 20, 2026 transaction date. Since the trade, the share price settled at $254.79 as of the July 21, 2026 market close.What is the impact on total ownership concentration?
The transaction resulted in an 8% reduction in direct holdings, leaving the insider with a total beneficial interest of 509,974 shares of Class A Common Stock. This remaining position, excluding derivatives, represents an insider ownership percentage of 0.14% and a market valuation of approximately $130 million based on recent trading levels.Company OverviewMetricValueShare Price (as of market close 2026-07-21)$254.79Market Capitalization$87.1 billionRevenue (TTM)$3.7 billionNet Income (TTM)$135.7 millionCompany SnapshotDatadog provides a comprehensive cloud-based Software-as-a-Service (SaaS) platform that delivers infrastructure monitoring, application performance management, log management, and security surveillance capabilities to enterprise customers globally.The company operates on a subscription-based business model, generating recurring revenue from customers who rely on its integrated monitoring and analytics solutions to maintain real-time visibility across their technology infrastructure.Datadog serves developers, IT operations teams, and business stakeholders across North America and internationally, with particular strength in enterprises requiring end-to-end observability and security monitoring solutions.Datadog has established itself as a leading provider of cloud-based observability and security solutions, with a market capitalization of $87.1 billion. The company's integrated platform approach — combining infrastructure monitoring, application performance tracking, log management, and security surveillance — provides a competitive advantage by delivering comprehensive visibility across complex technology environments.
With 8,100 employees and a strong presence in North America and international markets, Datadog continues to benefit from secular trends in cloud adoption and the increasing complexity of distributed systems requiring sophisticated monitoring solutions.
What this transaction means for investorsThe July 20 sale of over 40,000 Datadog shares by its co-founder and CTO Alexis Le-Quoc seems like a substantial disposition. Yet take into account that he retained over 500,000 directly-held shares post-transaction, and another 6.1 million Class B shares held indirectly via the Alexis Le-Quoc Revocable Trust, which can be converted into Class A, and the sale actually represents a small percentage of his equity stake.
In addition, this was a non-discretionary transaction executed as part of a pre-established Rule 10b5-1 plan. Such plans allow insiders to sell shares at predetermined times to avoid concerns of trading on non-public information. Consequently, Le-Quoc’s disposition does not appear to be a cause for investor concern.
Datadog shares are up thanks to strong business performance. In the first quarter, revenue reached $1 billion, representing outstanding 32% growth from the previous year. The company forecasted 2026 full-year sales to rise to $4.3 billion, a significant increase from 2025’s $3.4 billion.
Datadog v 1. čtvrtletí zvýšil tržby o 32 % na 1,006 miliardy USD a poprvé překonal 1 miliardu USD za čtvrtletí. Výhled na celý rok 2026 počítá s tržbami 4,30–4,34 miliardy USD.
Key Takeaways Datadog topped $1 billion in quarterly revenues as first-quarter 2026 sales rose 32% year over year.DDOG unveiled 100 plus AI and security capabilities and acquired Adaptive ML to expand AI agents.Datadog forecasts 2026 revenues of $4.30-$4.34B despite margin, competition and macro risks. Datadog (DDOG - Free Report) shares have surged 88.7% year to date, comfortably outpacing the Zacks Computer and Technology sector's 14.8% growth and the Zacks Internet Software industry's 8% decline over the same stretch of trading.
The rally reflects growing investor confidence in Datadog's role as a core observability and security platform for enterprises navigating increasingly complex, AI-driven infrastructure. With first-quarter 2026 results confirming accelerating growth and management issuing upbeat forward guidance, the near-term setup still looks favorable for investors willing to ride out some volatility, even as rising costs and intensifying competition warrant a genuinely watchful eye.
DDOG Outperforms Sector, Peers YTD
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Catalysts Fuelling DDOG’s RallyDatadog's first-quarter 2026 results showed revenues climbing 32% year over year to $1,006 million, marking the company's first quarter above $1 billion and a sequential acceleration from 29% growth in the prior period. Customers with annual recurring revenues of $100,000 or more grew 21% year over year to about 4,550. Non-GAAP operating margin held at 22%, while free cash flow reached $289 million.
Momentum has continued into the current quarter. Last month, Datadog hosted its DASH 2026 conference, unveiling more than 100 new capabilities to help customers manage growing AI and security complexity, including expanded agentic tooling. On June 30, the company announced its acquisition of Adaptive ML, a startup building a Reinforcement Learning Operations platform, which will join Datadog AI Research to accelerate work on specialized AI agents trained on real-world observability signals. The company also achieved FedRAMP High certification during the quarter and launched GPU Monitoring to help customers better manage AI infrastructure spend.
Forward-Looking Guidance by DDOG Holds PromiseFor the second quarter of 2026, Datadog guided revenues between $1.07 billion and $1.08 billion, non-GAAP operating income to be $225-$235 million, and non-GAAP earnings per share between 57 cents and 59 cents.
The Zacks Consensus Estimate calls for 2026 revenues of $4.34 billion, up 26.62% year over year, with earnings pegged at $2.41 per share, up 17.56%, suggesting the current valuation gap is arguably well justified by Datadog's faster, AI-driven observability growth trajectory relative to the broader field.
For full-year 2026, management projected revenues between $4.30 billion and $4.34 billion, non-GAAP operating income to be $940-$980 million, and non-GAAP earnings per share between $2.36 and $2.44, underscoring continued confidence in sustained double-digit growth.
Headwinds Worth MonitoringDespite the strong trajectory, risks remain. GAAP operating margin was just 1% in the quarter, reflecting heavy stock-based compensation and continued R&D investment, including newly absorbed costs tied to the Adaptive ML deal. Continued reliance on large enterprise deals also introduces some lumpiness to quarterly bookings, and management has flagged macro uncertainty tied to trade policy and IT spending as ongoing watch items.
Valuation and Competitive LandscapeDatadog carries a Zacks Value Score of F, trading at a forward 12-month price-to-sales ratio of 19.2X, well above the industry median of 4.78X. That steep premium reflects Datadog's notably stronger growth profile relative to slower-growing peers, whose more modest multiples mirror decelerating or largely flat expansion.
DDOG’s P/S Valuation
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DDOG faces significant competition from the likes of International Business Machines (IBM - Free Report) , Cisco Systems (CSCO - Free Report) and Dynatrace Software (DT - Free Report) , among others. Cisco Systems has advanced 45.2%, while Dynatrace has gained 4.1% and International Business Machines has returned 3.4%, highlighting Datadog's clear outperformance against all three legacy and pure-play rivals alike.
Cisco Systems leans on its deep network-layer footprint and hardware relationships to push observability bundles into existing accounts, while Dynatrace differentiates through AI-driven causal analytics aimed squarely at large enterprise customers. International Business Machines folds observability into its broader hybrid-cloud and consulting stack, giving it reach but comparatively less focus. Datadog's unified platform keeps winning share, though Cisco Systems, Dynatrace, and International Business Machines each retain entrenched enterprise relationships that keep the observability and security market intensely contested heading into the second half of 2026.
ConclusionWith accelerating revenue growth, robust guidance and steady AI-driven innovation spanning GPU monitoring, agentic security tooling and the Adaptive ML acquisition, Datadog's growth story remains firmly intact. Despite thin GAAP margins and a crowded competitive field, the near-term outlook still tilts favorably enough for patient, growth-oriented investors to consider Datadog.
DDOG currently carries a Zacks Rank #2 (Buy) and a Growth Score of A, a favorable combination that offers a strong investment opportunity per the Zacks proprietary methodology. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Adaptive ML will join Datadog’s AI lab to build frontier AI infrastructure to address cutting-edge research challenges within observability and security June 30, 2026 16:05 ET | Source: Datadog, Inc.
NEW YORK, June 30, 2026 (GLOBE NEWSWIRE) -- Datadog, Inc. (NASDAQ: DDOG), the leading AI-powered observability and security platform, today announced it has acquired Adaptive ML, a frontier AI startup developing the world's first Reinforcement Learning Operations (RLOps) platform, enabling enterprises to build, own, and deploy their own specialized agents and models.
Adaptive ML will join Datadog AI Research, accelerating Datadog’s investment and research efforts around world models and agentic LLM post-training for observability. Datadog AI Research focuses on fundamental technical problems and collaborates with Datadog's product and engineering teams to translate research advances into products.
“We started Adaptive to give every enterprise the ability to perpetually improve its own AI. The missing piece was never the algorithm, the hardest part was production scale. With Datadog, and the continuous stream of real-world signals that only a platform operating at this unique reach can provide, we will work directly from the foundation that intelligent agents need to drive exponential productivity gains, reliably and consistently. With Datadog’s unmatched access to real-world infrastructure, we can accelerate towards continuous intelligence,” said Julien Launay, co-founder and CEO, Adaptive ML.
“Our lab is focused on leveraging our data and domain expertise to build specialized agents and models, and to effectively turn our data into first-party intelligence. As we continue to bolster our R&D efforts and better serve our customers, bringing Adaptive ML on board is a natural fit to enhance and augment the work we are already doing within our lab,” said Ameet Talwalkar, Datadog's Chief Scientist.
As AI continues to intensify the level of complexity software systems are facing on a daily basis, Datadog has invested over $1B in R&D annually — significantly contributing to the end-to-end observability and security solutions it has delivered to customers. Recently, that includes research initiatives like Toto 2.0, as well as products like Bits Investigation, Bits Code, and Bits Security Analyst, which have already conducted hundreds of thousands of investigations on behalf of customers.
About Datadog
Datadog is the leading observability and security platform for the AI era, providing businesses with unified visibility across the technology stack to manage complexity at scale. It brings applications, infrastructure, data, models, and security into one place, using AI to detect and resolve issues before they impact customers. Trusted globally by Fortune 500 companies and high-growth AI leaders, Datadog enables businesses to move faster with clarity and confidence.
Forward-Looking Statements
This press release may include certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended including statements on the benefits of new products and features. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Actual results may differ materially from those described in the forward-looking statements and are subject to a variety of assumptions, uncertainties, risks and factors that are beyond our control, including those risks detailed under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission filings and reports, including the Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 7, 2026, as well as future filings and reports by us. Except as required by law, we undertake no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise.
