Datadog (NASDAQ:DDOG) Issues Q3 2026 Earnings Guidance

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

Wall Street Analysts Forecast Growth

DDOG has been the subject of several recent research reports. Robert W. Baird set a $210.00 target price on shares of Datadog in a report on Friday, May 8th. Raymond James Financial reaffirmed an “outperform” rating and issued a $280.00 price target on shares of Datadog in a report on Thursday. Arete Research increased their price target on Datadog from $260.00 to $340.00 and gave the stock a “buy” rating in a research report on Tuesday, June 23rd. Capital One Financial boosted their price objective on Datadog from $217.00 to $268.00 and gave the company an “overweight” rating in a report on Wednesday, June 17th. Finally, Monness Crespi & Hardt upped their target price on Datadog from $255.00 to $270.00 in a research note on Thursday, May 7th. Two analysts have rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating, three have given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $272.48.

Datadog Stock Performance

DDOG traded down $53.88 on Thursday, reaching $229.29. The stock had a trading volume of 15,009,154 shares, compared to its average volume of 5,657,318. The business’s 50-day moving average price is $249.56 and its two-hundred day moving average price is $177.45. The company has a market cap of $81.62 billion, a P/E ratio of 603.41, a price-to-earnings-growth ratio of 29.19 and a beta of 1.54. Datadog has a 12-month low of $98.01 and a 12-month high of $292.72. The company has a current ratio of 3.40, a quick ratio of 3.40 and a debt-to-equity ratio of 0.25.

Datadog (NASDAQ:DDOG) last posted 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 3.69% and a return on equity of 4.83%. The business had revenue of $1.12 billion for the quarter, compared to analyst estimates of $1.08 billion. During the same period in the prior year, the company posted $0.46 EPS. The company’s revenue for the quarter 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. Sell-side analysts forecast that Datadog will post 0.64 earnings per share for the current year.

Insider Buying and Selling

In other Datadog news, CEO Olivier Pomel sold 127,141 shares of the stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $199.84, for a total transaction of $25,407,857.44. Following the transaction, the chief executive officer owned 835,679 shares in the company, valued at approximately $167,002,091.36. This represents a 13.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO David M. Obstler sold 75,000 shares of the business’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $231.69, for a total value of $17,376,750.00. Following the completion of the sale, the chief financial officer owned 434,591 shares of the company’s stock, valued at $100,690,388.79. This trade represents a 14.72% 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 a total of 1,449,618 shares of company stock worth $341,302,159 in the last ninety days. 6.48% of the stock is owned by corporate insiders.

Key Stories Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog reported second-quarter revenue of $1.12 billion, up 35.6% year over year and above the $1.08 billion consensus estimate. Adjusted earnings of $0.65 per share also exceeded expectations of $0.58, compared with $0.46 a year earlier. Datadog Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management raised its full-year 2026 outlook, calling for approximately $4.5 billion in revenue and $2.50-$2.54 in EPS, both above Wall Street expectations. Third-quarter EPS guidance of $0.63-$0.65 was also ahead of the $0.52 consensus, although the revenue range was broadly in line with estimates. Datadog Beats Estimates and Raises FY2026 Outlook
• Neutral Sentiment: Director Michael James Callahan sold 12,500 shares worth about $3.6 million under a pre-arranged Rule 10b5-1 trading plan. While the sale reduced his direct holdings by roughly 45%, the planned nature of the transaction limits its significance as a current signal about the business. Datadog Director Stock Sale Filing
• Negative Sentiment: Investors were concerned that bookings growth is decelerating and that a major artificial-intelligence customer may reduce usage, potentially pressuring future consumption-based revenue. Datadog’s outlook was viewed as insufficient for a stock that had recently reached record highs and was priced for very strong growth. Datadog Says Lower Usage From Major AI Customer Could Dent Growth
• Negative Sentiment: The selloff reflects profit-taking and a valuation reset rather than a disappointing quarter: Datadog’s very high earnings multiple left little room for slower bookings, softer revenue expectations, or customer-usage risks. Datadog Stock Falls as High Bar and Cooling Bookings Offset Strong Quarter

Hedge Funds Weigh In On Datadog

A number of large investors have recently added to or reduced their stakes in DDOG. Brighton Jones LLC purchased a new position in Datadog in the 4th quarter valued at about $209,000. Bison Wealth LLC purchased a new stake in Datadog during the 4th quarter worth approximately $228,000. Empowered Funds LLC increased its stake in Datadog by 7.0% during the 1st quarter. Empowered Funds LLC now owns 10,313 shares of the company’s stock worth $1,023,000 after buying an additional 672 shares in the last quarter. Geneos Wealth Management Inc. raised its holdings in shares of Datadog by 17.6% during the first quarter. Geneos Wealth Management Inc. now owns 769 shares of the company’s stock valued at $76,000 after acquiring an additional 115 shares during the last quarter. Finally, Sivia Capital Partners LLC acquired a new position in shares of Datadog during the second quarter valued at approximately $509,000. 78.29% of the stock is currently owned by institutional investors and hedge funds.

About Datadog

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

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