Datadog (NASDAQ:DDOG) Updates FY 2026 Earnings Guidance

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

Wall Street Analyst Weigh In

Several research firms have recently issued reports on DDOG. Wells Fargo & Company raised their price target on shares of Datadog from $230.00 to $295.00 and gave the company an “overweight” rating in a research note on Monday, July 20th. Guggenheim boosted their target price on Datadog from $225.00 to $300.00 and gave the company a “buy” rating in a research report on Wednesday, July 22nd. Canadian Imperial Bank of Commerce boosted their price objective on Datadog from $250.00 to $280.00 and gave the company an “outperform” rating in a report on Wednesday, June 10th. Morgan Stanley lifted their price target on shares of Datadog from $225.00 to $300.00 and gave the company an “overweight” rating in a research report on Tuesday, July 28th. Finally, Truist Financial raised shares of Datadog from a “hold” rating to a “buy” rating and raised their price objective for the company from $190.00 to $300.00 in a research note on Monday, June 15th. Two research analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Datadog presently has an average rating of “Moderate Buy” and an average price target of $276.32.

Datadog Stock Performance

NASDAQ DDOG opened at $233.93 on Friday. The company has a 50-day simple moving average of $249.29 and a two-hundred day simple moving average of $177.85. Datadog has a 12-month low of $98.01 and a 12-month high of $292.72. The firm has a market cap of $83.27 billion, a price-to-earnings ratio of 477.42, a PEG ratio of 23.23 and a beta of 1.54. The company has a quick ratio of 3.40, a current ratio of 3.20 and a debt-to-equity ratio of 0.23.

Datadog (NASDAQ:DDOG) last posted its quarterly 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. The business had revenue of $1.12 billion for the quarter, compared to analyst estimates of $1.08 billion. Datadog had a return on equity of 5.67% and a net margin of 4.48%.Datadog’s revenue for the quarter was up 35.6% compared to the same quarter last year. During the same period last year, the company earned $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. On average, equities analysts forecast that Datadog will post 0.64 EPS for the current year.

Insider Transactions at Datadog

In other news, CEO Olivier Pomel sold 127,141 shares of Datadog stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $286.71, for a total transaction 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 approximately $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 accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Amit Agarwal sold 20,000 shares of the business’s stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $266.82, for a total value of $5,336,400.00. Following the completion of the sale, the director directly owned 1,640 shares in the company, valued at approximately $437,584.80. This represents a 92.42% 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 sold 1,502,163 shares of company stock valued at $363,481,842 in the last three months. Company insiders own 6.48% of the company’s stock.

Datadog News Summary

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog delivered a strong second quarter: revenue rose 35.6% year over year to $1.12 billion, exceeding the $1.08 billion consensus estimate, while EPS of $0.65 topped expectations of $0.58 and increased from $0.46 a year earlier. Growth was broad-based across AI and non-AI demand, with billings and remaining performance obligations also supporting future revenue visibility. Datadog Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management raised its fiscal 2026 outlook to approximately $4.45-$4.47 billion in revenue and $2.50-$2.54 in EPS. Third-quarter EPS guidance of $0.63-$0.65 is above the $0.52 analyst consensus, providing a positive catalyst despite revenue guidance being roughly in line with expectations. Datadog Beats Earnings and Raises Outlook
• Positive Sentiment: Citigroup raised its DDOG price target to $305 and reaffirmed a “Buy” rating. DA Davidson also maintained its “Buy” rating with a $315 target, suggesting analysts see significant upside following the pullback. Datadog Analyst Price Targets
• Neutral Sentiment: CEO Olivier Pomel sold 127,141 shares worth approximately $36.5 million under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by about 17%, but the planned nature of the transaction limits its value as a signal about Datadog’s business outlook. Datadog CEO Stock Sale Filing
• Negative Sentiment: The earlier decline reflected a high valuation and exceptionally high investor expectations rather than a quarterly miss. Investors focused on slowing bookings growth and management’s disclosure that its largest customer, reportedly a major AI company, plans to reduce usage, creating a risk to consumption-based revenue. Datadog Major Customer Usage News

Institutional Investors Weigh In On Datadog

Several hedge funds have recently added to or reduced their stakes in DDOG. Elevation Point Wealth Partners LLC boosted its stake in Datadog by 3.3% in the 3rd quarter. Elevation Point Wealth Partners LLC now owns 1,697 shares of the company’s stock worth $242,000 after buying an additional 55 shares during the last quarter. Vivaldi Capital Management LP increased its stake in shares of Datadog by 2.8% during the 3rd quarter. Vivaldi Capital Management LP now owns 2,689 shares of the company’s stock valued at $383,000 after acquiring an additional 74 shares during the last quarter. Great Lakes Advisors LLC lifted its holdings in shares of Datadog by 2.3% during the 4th quarter. Great Lakes Advisors LLC now owns 3,697 shares of the company’s stock worth $503,000 after acquiring an additional 83 shares during the period. Geneos Wealth Management Inc. boosted its position in shares of Datadog by 17.6% in the first quarter. Geneos Wealth Management Inc. now owns 769 shares of the company’s stock worth $76,000 after acquiring an additional 115 shares during the last quarter. Finally, Equitable Holdings Inc. grew its holdings in Datadog by 1.8% in the third quarter. Equitable Holdings Inc. now owns 7,346 shares of the company’s stock valued at $1,046,000 after purchasing an additional 127 shares during the period. 78.29% of the stock is owned by institutional investors.

Datadog Company Profile

Datadog (NASDAQ: DDOG) is a cloud-based monitoring and observability platform that helps organizations monitor, troubleshoot and secure their applications and infrastructure at scale. Its software-as-a-service offering collects and analyzes metrics, traces and logs from servers, containers, cloud services and applications to provide real-time visibility into system performance and health. Datadog’s platform is widely used by engineering, operations and security teams to reduce downtime, accelerate incident response and improve application reliability.

The company’s product suite includes infrastructure monitoring, application performance monitoring (APM), log management, real user monitoring (RUM), synthetic monitoring and network performance monitoring, along with security-focused products such as security monitoring and cloud SIEM.