Datadog (NASDAQ:DDOG) Releases FY 2026 Earnings Guidance

Key Points

• Datadog materially raised FY‑2026 guidance, forecasting EPS of $2.36–$2.44 (vs. consensus ~$1.80) and revenue of $4.3B, and updated Q2 EPS to $0.57–$0.59.
• Strong Q1 performance supports the guide: revenue of ~$1.006B (+32% YoY) with healthy operating and free cash flow, expansion of large customers and FedRAMP High certification easing federal deal access.
• Risks remain as the stock trades with a stretched valuation (P/E ~464), has seen modest share weakness, and insiders (CEO/CTO) executed pre‑arranged stock sales, which may concern some investors.

Datadog (NASDAQ:DDOG - Get Free Report) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 2.360-2.440 for the period, compared to the consensus 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 Trading Down 1.4%

Shares of Datadog stock opened at $143.71 on Thursday. The firm has a market cap of $50.67 billion, a price-to-earnings ratio of 463.58, a price-to-earnings-growth ratio of 52.75 and a beta of 1.30. Datadog has a 52-week low of $98.01 and a 52-week high of $201.69. The company's 50-day simple moving average is $122.72 and its 200-day simple moving average is $136.73. The company has a quick ratio of 3.38, a current ratio of 3.38 and a debt-to-equity ratio of 0.26.

Datadog (NASDAQ:DDOG - Get Free Report) last posted its quarterly earnings results on Tuesday, February 10th. The company reported $0.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.55 by $0.04. The firm had revenue of $953.19 million during the quarter, compared to analysts' expectations of $916.53 million. Datadog had a net margin of 3.14% and a return on equity of 4.14%. The firm's revenue for the quarter was up 29.2% on a year-over-year basis. During the same period in the prior year, the company posted $0.49 earnings per share. 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 research analysts anticipate that Datadog will post 0.32 earnings per share for the current year.

Wall Street Analysts Forecast Growth

DDOG has been the subject of several analyst reports. KeyCorp cut their price target on shares of Datadog from $170.00 to $155.00 and set an "overweight" rating for the company in a report on Wednesday, February 4th. Canadian Imperial Bank of Commerce cut their price target on shares of Datadog from $240.00 to $215.00 and set an "outperformer" rating for the company in a report on Monday, April 20th. The Goldman Sachs Group started coverage on shares of Datadog in a research report on Monday, January 12th. They set a "sell" rating and a $113.00 target price on the stock. TD Cowen lowered their target price on shares of Datadog from $215.00 to $190.00 and set a "buy" rating on the stock in a research report on Wednesday, April 15th. Finally, Rothschild & Co Redburn started coverage on shares of Datadog in a research report on Thursday, April 23rd. They set a "buy" rating and a $170.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Datadog has an average rating of "Moderate Buy" and a consensus price target of $177.28.

Insider Activity

In other news, CEO Olivier Pomel sold 42,443 shares of the stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $111.14, for a total value of $4,717,115.02. Following the sale, the chief executive officer directly owned 835,679 shares in the company, valued at $92,877,364.06. This represents a 4.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Alexis Le-Quoc sold 43,106 shares of the stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $144.93, for a total transaction of $6,247,352.58. Following the completion of the sale, the chief technology officer 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. 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 637,745 shares of company stock worth $78,462,247 over the last ninety days. 6.67% of the stock is currently owned by insiders.

Key Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Management materially raised Q2 and FY‑2026 guidance: Q2 EPS of $0.57–$0.59 vs. consensus ~$0.41 and Q2 revenue about $1.1B vs. ~$992M; FY EPS of $2.36–$2.44 vs. consensus ~$1.80 and FY revenue roughly $4.3B vs. ~$4.1B. These upside guidance revisions are the primary bullish catalyst for the stock today.
• Positive Sentiment: Datadog reported strong Q1 results — revenue $1,006M (+32% YoY), $335M operating cash flow and $289M free cash flow, plus expansion in large customers (≈4,550 customers with $100k+ ARR) and new product launches (MCP Server, Bits AI Security Agent, GPU Monitoring, Experiments). The quarter and cash flow metrics support the upbeat guide. Datadog Q1 2026 Results
• Positive Sentiment: Datadog for Government achieved FedRAMP High certification, removing a key compliance hurdle for large federal deals and opening higher‑security public sector demand. FedRAMP High Certification
• Positive Sentiment: Jefferies raised its price target to $170 and maintained a Buy rating, signaling incremental sell‑side support for upside from current levels. Jefferies PT Raise
• Neutral Sentiment: Wall Street previews and analyst notes ahead of/after the print are driving attention and short‑term flows; expect continued headline sensitivity to bookings, large‑customer growth and AI adoption commentary. Analyst Coverage Preview
• Neutral Sentiment: Options and trading strategies around the earnings event have elevated implied volatility; some flow may be driven by traders positioning rather than fundamentals. Options Trade Note
• Negative Sentiment: CTO Alexis Le‑Quoc sold ~43,106 shares in a pre‑arranged Rule 10b5‑1 trade (disclosed), trimming insider ownership — while flagged as pre‑planned, insider selling can still be read negatively by some investors. SEC Form 4
• Negative Sentiment: Valuation remains stretched (high P/E and investors may be locking in gains after recent strong share performance), which can amplify pullbacks even when fundamentals are improving.

Institutional Trading of Datadog

A number of hedge funds have recently bought and sold shares of DDOG. Sivia Capital Partners LLC acquired a new position in shares of Datadog during the 2nd quarter valued at about $509,000. Brighton Jones LLC acquired a new position in shares of Datadog during the 4th quarter valued at about $209,000. Bison Wealth LLC acquired a new position in shares of Datadog during the 4th quarter valued at about $228,000. Claro Advisors Inc. acquired a new position in shares of Datadog during the 4th quarter valued at about $204,000. Finally, Fieldview Capital Management LLC acquired a new position in shares of Datadog in the 4th quarter valued at $205,000. Institutional investors and hedge funds own 78.29% of the company's stock.

About Datadog

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.

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