Datadog (NASDAQ:DDOG) Issues Q1 2026 Earnings Guidance

Datadog (NASDAQ:DDOG) updated its first quarter 2026 earnings guidance on Tuesday. The company provided EPS guidance of 0.490-0.510 for the period, compared to the consensus EPS estimate of 0.350. The company issued revenue guidance of $951.0 million-$961.0 million, compared to the consensus revenue estimate of $932.3 million. Datadog also updated its FY 2026 guidance to 2.080-2.160 EPS.

Wall Street Analyst Weigh In

DDOG has been the subject of a number of recent analyst reports. Macquarie Infrastructure increased their target price on shares of Datadog from $175.00 to $220.00 and gave the company an “outperform” rating in a research report on Friday, November 7th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Datadog in a research report on Wednesday, January 21st. Capital One Financial lifted their target price on shares of Datadog from $156.00 to $157.00 and gave the stock an “overweight” rating in a research note on Wednesday. DA Davidson reaffirmed a “buy” rating and set a $225.00 price target on shares of Datadog in a research report on Monday, February 2nd. Finally, Moffett Nathanson reiterated a “buy” rating on shares of Datadog in a report on Monday, December 29th. Thirty-seven research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $178.25.

Datadog Stock Down 5.4%

DDOG traded down $7.07 during trading on Wednesday, hitting $122.60. 1,218,690 shares of the company’s stock were exchanged, compared to its average volume of 6,457,935. Datadog has a fifty-two week low of $81.63 and a fifty-two week high of $201.69. The stock has a market cap of $42.99 billion, a P/E ratio of 396.17, a PEG ratio of 20.37 and a beta of 1.27. The business’s 50 day moving average is $133.87 and its two-hundred day moving average is $144.06. The company has a quick ratio of 3.66, a current ratio of 3.66 and a debt-to-equity ratio of 0.29.

Datadog (NASDAQ:DDOG) last posted its earnings results on Tuesday, February 10th. The company reported $0.59 EPS for the quarter, topping the consensus estimate of $0.55 by $0.04. Datadog had a net margin of 3.32% and a return on equity of 4.14%. The company had revenue of $953.19 million during the quarter, compared to the consensus estimate of $916.53 million. During the same period in the previous year, the firm posted $0.49 earnings per share. The firm’s revenue for the quarter was up 29.2% on a year-over-year basis. Datadog has set its FY 2026 guidance at 2.080-2.160 EPS and its Q1 2026 guidance at 0.490-0.510 EPS. As a group, equities analysts expect that Datadog will post 0.34 earnings per share for the current fiscal year.

Insider Activity at Datadog

In related news, CTO Alexis Le-Quoc sold 53,912 shares of the company’s stock in a transaction on Monday, December 8th. The stock was sold at an average price of $154.05, for a total transaction of $8,305,143.60. Following the completion of the sale, the chief technology officer owned 295,448 shares in the company, valued at approximately $45,513,764.40. This represents a 15.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Olivier Pomel sold 100,754 shares of the stock in a transaction on Monday, November 17th. The shares were sold at an average price of $181.18, for a total value of $18,254,609.72. Following the completion of the sale, the chief executive officer directly owned 533,358 shares of the company’s stock, valued at $96,633,802.44. The trade was a 15.89% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 538,917 shares of company stock worth $86,804,288. 8.70% of the stock is owned by insiders.

Datadog News Roundup

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q4 beat and upbeat guidance: DDOG reported $953M revenue (+29% YoY) and $0.59 EPS, beating estimates, and issued a strong FY2026 EPS/ revenue outlook and Q1 guidance — the core driver of the post-earnings rally. Reuters: Datadog beats quarterly estimates
• Positive Sentiment: Product and cash-flow highlights: Datadog disclosed new AI features (Bits AI SRE Agent, Storage Management, Feature Flags, Data Observability) and strong cash generation (>$900M free cash flow in FY2025), supporting long-term growth narrative. GlobeNewswire: Q4 & FY2025 results
• Positive Sentiment: Market reaction and coverage: Multiple outlets note a sizable share rally after the beat and guidance (reports of ~16% intraday jump), reflecting strong investor reception to results. ProactiveInvestors: Shares surge after Q4 beat
• Positive Sentiment: Analyst reaffirmation: Rosenblatt and others reiterated buy ratings (Rosenblatt: $185 PT), which reinforces continued bullish sentiment among some brokers. Benzinga: Rosenblatt reaffirms buy
• Neutral Sentiment: Market context — software rebound: Broader software/AI-related flows and improved investor sentiment are supporting rebounds in high-growth software names, including Datadog; this is macro support rather than company-specific. Benzinga: Nasdaq & software rebound
• Neutral Sentiment: Opinion/analysis pieces debate valuation: Several analysts/commentators highlight the beat but question rich multiples — useful context for investors assessing risk/reward. Seeking Alpha: Commentary
• Negative Sentiment: Multiple price-target cuts: Several firms trimmed PTs (Wolfe, Scotiabank, Needham, RBC, BTIG lowered targets to the $150–$170 range), which can cap near-term upside despite buy/outperform ratings. MarketScreener: Wolfe PT cut
• Negative Sentiment: Needham & others cut PTs materially (e.g., Needham to $155 from $220), indicating some analysts see valuation risk even after the beat. Benzinga: Needham PT cut
• Neutral Sentiment: Short-interest data unclear: reported short-interest figures look anomalous/unchanged in the snapshot provided, so no clear short-squeeze signal. Yahoo Finance / earnings transcript

Institutional Investors Weigh In On Datadog

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. J.W. Cole Advisors Inc. boosted its stake in shares of Datadog by 22.9% in the 4th quarter. J.W. Cole Advisors Inc. now owns 2,387 shares of the company’s stock worth $325,000 after buying an additional 445 shares during the last quarter. Vise Technologies Inc. increased its position in shares of Datadog by 4.9% during the fourth quarter. Vise Technologies Inc. now owns 3,238 shares of the company’s stock valued at $440,000 after acquiring an additional 151 shares during the last quarter. Sunbelt Securities Inc. lifted its holdings in Datadog by 18.3% during the third quarter. Sunbelt Securities Inc. now owns 2,835 shares of the company’s stock worth $404,000 after acquiring an additional 438 shares during the period. Captrust Financial Advisors boosted its position in Datadog by 0.9% in the third quarter. Captrust Financial Advisors now owns 17,720 shares of the company’s stock worth $2,523,000 after purchasing an additional 157 shares during the last quarter. Finally, Coldstream Capital Management Inc. grew its stake in Datadog by 7.6% in the 3rd quarter. Coldstream Capital Management Inc. now owns 4,987 shares of the company’s stock valued at $710,000 after purchasing an additional 352 shares during the period. Hedge funds and other institutional investors own 78.29% of the company’s stock.

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.