Datadog (NASDAQ:DDOG) Announces Quarterly Earnings Results

Datadog (NASDAQ:DDOG) announced its quarterly earnings data on Thursday. The company reported $0.60 EPS for the quarter, beating the consensus estimate of $0.51 by $0.09, Briefing.com reports. Datadog had a return on equity of 4.14% and a net margin of 3.14%.The business had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $960.12 million. During the same period in the previous year, the business earned $0.46 earnings per share. The business’s revenue was up 32.1% on a year-over-year basis. Datadog updated its FY 2026 guidance to 2.360-2.440 EPS and its Q2 2026 guidance to 0.570-0.590 EPS.

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

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

Datadog Price Performance

Shares of NASDAQ:DDOG traded up $11.46 during mid-day trading on Friday, reaching $200.19. The stock had a trading volume of 8,959,821 shares, compared to its average volume of 5,886,134. The company has a current ratio of 3.38, a quick ratio of 3.38 and a debt-to-equity ratio of 0.26. The company has a market cap of $70.58 billion, a P/E ratio of 645.77, a price-to-earnings-growth ratio of 52.02 and a beta of 1.30. Datadog has a 1 year low of $98.01 and a 1 year high of $201.69. The business’s 50 day moving average price is $124.41 and its 200 day moving average price is $136.98.

Analyst Ratings Changes

Several brokerages have recently commented on DDOG. BMO Capital Markets boosted their price objective on Datadog from $165.00 to $220.00 and gave the company an “outperform” rating in a research report on Friday. Citigroup boosted their price objective on Datadog from $175.00 to $218.00 and gave the company a “buy” rating in a research report on Friday. UBS Group restated a “buy” rating and issued a $220.00 price objective on shares of Datadog in a research report on Friday. Citizens Jmp upgraded Datadog from a “market perform” rating to an “outperform” rating and set a $225.00 price objective on the stock in a research report on Thursday. Finally, The Goldman Sachs Group began coverage on Datadog in a research report on Monday, January 12th. They issued a “sell” rating and a $113.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, forty have assigned a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Datadog presently has a consensus rating of “Moderate Buy” and a consensus price target of $211.76.

Insider Buying and Selling

In other Datadog news, CTO Alexis Le-Quoc sold 43,106 shares of the company’s stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $144.93, for a total transaction of $6,247,352.58. Following the sale, the chief technology officer directly owned 531,311 shares in the company, valued at $77,002,903.23. This represents a 7.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Sean Michael Walters sold 1,914 shares of the company’s stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $150.00, for a total value of $287,100.00. Following the sale, the executive owned 291,267 shares in the company, valued at approximately $43,690,050. This trade represents a 0.65% decrease in their ownership of the stock. 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. Insiders sold 654,018 shares of company stock valued at $80,903,197 in the last ninety days. Company insiders own 6.67% of the company’s stock.

Institutional Investors Weigh In On Datadog

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

Key Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog reported Q1 revenue of about $1.01 billion and EPS of $0.60, both above Wall Street estimates, reinforcing the growth story. Datadog Q1 2026 Financial Results
• Positive Sentiment: Management raised Q2 and FY 2026 guidance well above consensus, which is the main catalyst behind the stock’s strength and suggests momentum is carrying into the rest of the year. Reuters article on annual forecast raise
• Positive Sentiment: Multiple analysts lifted price targets after the earnings beat-and-raise, signaling broader confidence that Datadog can keep outperforming. Analyst target hikes
• Positive Sentiment: Datadog for Government received FedRAMP High certification, which could help open more federal and high-security public sector opportunities. FedRAMP High certification
• Positive Sentiment: RBC and other firms upgraded their outlooks and lifted targets, adding to the bullish analyst momentum around the name. RBC analyst commentary
• Neutral Sentiment: Insider selling by several executives and a director was disclosed, but the transactions were pre-arranged 10b5-1 sales and appear more like profit-taking than a change in fundamentals. SEC filing
• Neutral Sentiment: The stock’s sharp run-up has increased volatility, and some trading looks momentum- and options-driven rather than purely fundamental.

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.