Datadog (NASDAQ:DDOG) Updates FY 2026 Earnings Guidance

Datadog (NASDAQ:DDOG) updated its FY 2026 earnings guidance on Thursday. The company provided EPS guidance of 2.500-2.540 for the period, compared to the consensus EPS estimate of 2.070. The company issued revenue guidance of $4.5 billion-$4.5 billion, compared to the consensus revenue estimate of $4.3 billion. Datadog also updated its Q3 2026 guidance to 0.630-0.650 EPS.

Datadog Price Performance

Shares of Datadog stock traded down $53.88 during trading on Thursday, hitting $229.29. 15,009,154 shares of the stock traded hands, compared to its average volume of 5,657,318. The stock has a market cap of $81.62 billion, a price-to-earnings ratio of 603.41, a PEG ratio of 29.19 and a beta of 1.54. The company has a quick ratio of 3.40, a current ratio of 3.40 and a debt-to-equity ratio of 0.25. Datadog has a 52 week low of $98.01 and a 52 week high of $292.72. The firm’s fifty day moving average is $249.56 and its 200-day moving average is $177.45.

Datadog (NASDAQ:DDOG) last released its earnings results on Thursday, August 6th. The company reported $0.65 earnings per share for the quarter, topping analysts’ consensus estimates of $0.58 by $0.07. The company had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.08 billion. Datadog had a return on equity of 4.83% and a net margin of 3.69%.Datadog’s quarterly revenue was up 35.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.46 EPS. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. Research analysts expect that Datadog will post 0.64 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. Wolfe Research reaffirmed an “outperform” rating and issued a $295.00 price objective on shares of Datadog in a research note on Thursday, June 11th. Capital One Financial lifted their target price on shares of Datadog from $217.00 to $268.00 and gave the stock an “overweight” rating in a research report on Wednesday, June 17th. Benchmark reissued a “buy” rating on shares of Datadog in a research note on Tuesday, July 28th. DA Davidson set a $315.00 price target on shares of Datadog in a research report on Friday, July 31st. Finally, Wells Fargo & Company raised their price objective on Datadog from $230.00 to $295.00 and gave the company an “overweight” rating in a research note on Monday, July 20th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, Datadog has an average rating of “Moderate Buy” and a consensus price target of $272.48.

Insider Activity

In other Datadog news, CTO Alexis Le-Quoc sold 43,224 shares of the firm’s stock in a transaction on Monday, July 20th. The shares were sold at an average price of $265.23, for a total value of $11,464,301.52. Following the sale, the chief technology officer owned 509,805 shares of the company’s stock, valued at $135,215,580.15. This trade represents a 7.82% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Amit Agarwal sold 20,000 shares of the business’s stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $266.82, for a total transaction of $5,336,400.00. Following the completion of the transaction, the director owned 1,640 shares in the company, valued at $437,584.80. The trade was a 92.42% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 1,449,618 shares of company stock worth $341,302,159. 6.48% of the stock is currently owned by corporate insiders.

Datadog News Roundup

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of DDOG. Elevation Point Wealth Partners LLC boosted its holdings in shares of Datadog by 3.3% in the 3rd quarter. Elevation Point Wealth Partners LLC now owns 1,697 shares of the company’s stock valued at $242,000 after buying an additional 55 shares in the last quarter. Vivaldi Capital Management LP increased its position in shares of Datadog by 2.8% during the third quarter. Vivaldi Capital Management LP now owns 2,689 shares of the company’s stock worth $383,000 after purchasing an additional 74 shares in the last quarter. Great Lakes Advisors LLC increased its position in shares of Datadog by 2.3% during the fourth quarter. Great Lakes Advisors LLC now owns 3,697 shares of the company’s stock worth $503,000 after purchasing an additional 83 shares in the last quarter. Geneos Wealth Management Inc. lifted its holdings 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 purchasing an additional 115 shares during the last quarter. Finally, Equitable Holdings Inc. lifted its holdings in shares of Datadog by 1.8% in the 3rd quarter. Equitable Holdings Inc. now owns 7,346 shares of the company’s stock valued at $1,046,000 after purchasing an additional 127 shares during the last quarter. 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.