Datadog (NASDAQ:DDOG) Updates Q2 2026 Earnings Guidance

Datadog (NASDAQ:DDOG) issued an update on its second quarter 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 0.570-0.590 for the period, compared to the consensus earnings per share estimate of 0.410. The company issued revenue guidance of $1.1 billion-$1.1 billion, compared to the consensus revenue estimate of $992.3 million. Datadog also updated its FY 2026 guidance to 2.360-2.440 EPS.

Datadog Stock Up 6.1%

Shares of NASDAQ:DDOG traded up $11.43 during mid-day trading on Friday, hitting $200.16. 12,024,412 shares of the company traded hands, compared to its average volume of 6,254,968. The stock has a market cap of $70.57 billion, a P/E ratio of 526.75, a P/E/G ratio of 68.31 and a beta of 1.30. 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 12-month low of $98.01 and a 12-month high of $201.69. The stock has a 50-day moving average price of $124.41 and a two-hundred day moving average price of $136.98.

Datadog (NASDAQ:DDOG) last announced 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. The company had revenue of $1.01 billion for the quarter, compared to analysts’ expectations of $960.12 million. Datadog had a return on equity of 4.83% and a net margin of 3.69%.Datadog’s quarterly revenue was up 32.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.46 earnings per share. Datadog has set its FY 2026 guidance at 2.360-2.440 EPS and its Q2 2026 guidance at 0.570-0.590 EPS. On average, equities research analysts forecast that Datadog will post 0.32 earnings per share for the current year.

Analysts Set New Price Targets

Several research analysts have weighed in on DDOG shares. Scotiabank boosted their price objective on Datadog from $160.00 to $225.00 and gave the stock an “outperform” rating in a research report on Friday. Truist Financial boosted their price objective on Datadog from $120.00 to $190.00 and gave the stock a “hold” rating in a research report on Thursday. Canaccord Genuity Group set a $225.00 price objective on Datadog in a research report on Friday. Piper Sandler boosted their price objective on Datadog from $195.00 to $230.00 in a research report on Thursday. Finally, Barclays boosted their price objective on Datadog from $148.00 to $215.00 and gave the stock an “overweight” rating in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, forty have given a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $211.76.

Insiders Place Their Bets

In other news, CEO Olivier Pomel sold 68,922 shares of the company’s stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $110.54, for a total transaction of $7,618,637.88. Following the transaction, the chief executive officer owned 704,821 shares of the company’s stock, valued at $77,910,913.34. This represents a 8.91% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CTO Alexis Le-Quoc sold 53,912 shares of the company’s stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $125.49, for a total value of $6,765,416.88. Following the transaction, the chief technology officer directly owned 437,257 shares in the company, valued at $54,871,380.93. This represents a 10.98% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 654,018 shares of company stock worth $80,903,197 in the last ninety days. Insiders own 6.67% of the company’s stock.

Key Headlines 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 Inflows and Outflows

A number of institutional investors have recently made changes to their positions in DDOG. JPL Wealth Management LLC bought a new stake in shares of Datadog during the 3rd quarter valued at $27,000. Quarry LP bought a new stake in shares of Datadog during the 3rd quarter valued at $45,000. DV Equities LLC bought a new stake in shares of Datadog during the 4th quarter valued at $62,000. Geneos Wealth Management Inc. raised its stake in shares of Datadog by 17.6% during the 1st 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, GW&K Investment Management LLC raised its stake in shares of Datadog by 964.3% during the 4th quarter. GW&K Investment Management LLC now owns 596 shares of the company’s stock valued at $81,000 after purchasing an additional 540 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.