Datadog (NASDAQ:DDOG) Issues FY 2026 Earnings Guidance

Datadog (NASDAQ:DDOG) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 2.360-2.440 for the period, compared to the consensus EPS estimate of 1.800. The company issued revenue guidance of $4.3 billion-$4.3 billion, compared to the consensus revenue estimate of $4.1 billion. Datadog also updated its Q2 2026 guidance to 0.570-0.590 EPS.

Datadog Stock Performance

NASDAQ DDOG traded up $11.43 on Friday, hitting $200.16. 12,024,412 shares of the company’s stock traded hands, compared to its average volume of 6,254,968. The company has a current ratio of 3.40, a quick ratio of 3.38 and a debt-to-equity ratio of 0.25. Datadog has a 1-year low of $98.01 and a 1-year high of $201.69. The firm’s 50-day moving average price is $124.41 and its two-hundred day moving average price is $136.98. The firm has a market capitalization of $70.57 billion, a PE ratio of 526.75, a P/E/G ratio of 68.31 and a beta of 1.30.

Datadog (NASDAQ:DDOG) last posted its earnings results on Thursday, May 7th. The company reported $0.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.51 by $0.09. Datadog had a net margin of 3.69% and a return on equity of 4.83%. The firm had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $960.12 million. During the same period in the previous year, the business posted $0.46 EPS. The business’s revenue was up 32.1% compared to the same quarter last year. Datadog has set its FY 2026 guidance at 2.360-2.440 EPS and its Q2 2026 guidance at 0.570-0.590 EPS. As a group, analysts expect that Datadog will post 0.32 EPS for the current year.

Wall Street Analyst Weigh In

DDOG has been the topic of several research analyst reports. Needham & Company LLC lifted their price objective on Datadog from $155.00 to $225.00 and gave the stock a “buy” rating in a report on Friday. Capital One Financial dropped their target price on shares of Datadog from $157.00 to $135.00 and set an “overweight” rating for the company in a report on Thursday, April 16th. Wedbush upped their target price on shares of Datadog from $190.00 to $220.00 and gave the stock an “outperform” rating in a report on Thursday. BNP Paribas Exane dropped their target price on shares of Datadog from $210.00 to $175.00 and set an “outperform” rating for the company in a report on Thursday, January 15th. Finally, Piper Sandler upped their target price on shares of Datadog from $195.00 to $230.00 in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, forty have assigned a Buy rating, one has given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $211.76.

Insider Transactions at Datadog

In related news, Director Julie Richardson sold 502 shares of the company’s stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $150.00, for a total value of $75,300.00. Following the completion of the sale, the director owned 4,168 shares of the company’s stock, valued at approximately $625,200. This represents a 10.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through 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 dated Tuesday, May 5th. The shares were sold at an average price of $150.00, for a total transaction of $287,100.00. Following the completion of the sale, the executive directly owned 291,267 shares of the company’s stock, valued at $43,690,050. This represents a 0.65% 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. Insiders have sold a total of 654,018 shares of company stock valued at $80,903,197 in the last three months. 6.67% of the stock is currently owned by corporate insiders.

Key Stories Impacting Datadog

Here are the key news stories impacting Datadog this week:

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

Institutional Investors Weigh In On Datadog

Institutional investors and hedge funds have recently made changes to their positions in the stock. JPL Wealth Management LLC purchased a new stake in shares of Datadog in the 3rd quarter valued at approximately $27,000. Quarry LP purchased a new stake in shares of Datadog in the 3rd quarter valued at approximately $45,000. DV Equities LLC purchased a new stake in shares of Datadog in the 4th quarter valued at approximately $62,000. Geneos Wealth Management Inc. raised its stake in shares of Datadog by 17.6% in the 1st 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 period. Finally, GW&K Investment Management LLC raised its stake in shares of Datadog by 964.3% in the 4th quarter. GW&K Investment Management LLC now owns 596 shares of the company’s stock valued at $81,000 after acquiring an additional 540 shares during the period. 78.29% of the stock is owned by hedge funds and other 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.