Datadog (NASDAQ:DDOG) Releases Q2 2026 Earnings Guidance

Key Points

• Raised guidance: Datadog increased Q2 2026 guidance to $0.57–$0.59 EPS (vs. consensus ~ $0.41) and Q2 revenue of about $1.1B, while upping FY‑2026 EPS to $2.36–$2.44.
• Operational momentum: Management cited strong Q1 results (revenue $1,006M, +32% YoY; $335M operating cash flow, $289M free cash flow), customer expansion and new product launches, and secured FedRAMP High for government deals.
• Risks remain: Valuation is stretched (P/E ≈463.6), insiders have sold sizable stakes recently, and the stock was down ~1.4% on the news, which could amplify pullbacks despite the upbeat guide.

Datadog (NASDAQ:DDOG - Get Free Report) updated its second quarter 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 0.570-0.590 for the period, compared to the consensus 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 Down 1.4%

Shares of NASDAQ DDOG opened at $143.71 on Thursday. The stock has a market cap of $50.67 billion, a P/E ratio of 463.58, a P/E/G ratio of 52.75 and a beta of 1.30. The firm has a 50 day moving average price of $122.72 and a 200 day moving average price of $136.73. The company has a debt-to-equity ratio of 0.26, a quick ratio of 3.38 and a current ratio of 3.38. Datadog has a 52-week low of $98.01 and a 52-week high of $201.69.

Datadog (NASDAQ:DDOG - Get Free Report) last issued its quarterly earnings data on Tuesday, February 10th. The company reported $0.59 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 business's revenue for the quarter was up 29.2% on a year-over-year basis. During the same quarter in the previous year, the company earned $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. Analysts expect that Datadog will post 0.32 EPS for the current year.

Analysts Set New Price Targets

DDOG has been the subject of a number of analyst reports. Guggenheim upgraded shares of Datadog from a "neutral" rating to a "buy" rating and set a $175.00 price objective for the company in a report on Thursday, April 9th. Scotiabank decreased their price objective on shares of Datadog from $180.00 to $160.00 and set a "sector outperform" rating for the company in a report on Wednesday, February 11th. Wall Street Zen cut shares of Datadog from a "buy" rating to a "hold" rating in a report on Saturday, January 17th. 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 price objective for the company. Finally, Royal Bank Of Canada lowered their price objective on shares of Datadog from $175.00 to $150.00 and set an "outperform" rating for the company in a research report on Monday, February 9th. One research analyst has rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $177.28.

Insider Buying and Selling at Datadog

In related news, CEO Olivier Pomel sold 68,922 shares of the stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $110.54, for a total transaction of $7,618,637.88. Following the completion of the transaction, the chief executive officer owned 704,821 shares in the company, valued at approximately $77,910,913.34. This represents a 8.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CTO Alexis Le-Quoc sold 53,912 shares of the stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $125.49, for a total transaction of $6,765,416.88. Following the transaction, the chief technology officer owned 437,257 shares of the company's stock, valued at $54,871,380.93. The trade was a 10.98% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 637,745 shares of company stock valued at $78,462,247 in the last 90 days. 6.67% of the stock is currently owned by corporate insiders.

Datadog News Summary

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 Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the business. Price T Rowe Associates Inc. MD boosted its holdings in Datadog by 7.1% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 14,423,814 shares of the company's stock worth $1,961,496,000 after purchasing an additional 956,993 shares during the last quarter. State Street Corp boosted its holdings in Datadog by 106.8% during the third quarter. State Street Corp now owns 13,732,777 shares of the company's stock worth $1,955,547,000 after purchasing an additional 7,091,075 shares during the last quarter. Invesco Ltd. boosted its holdings in Datadog by 119.2% during the third quarter. Invesco Ltd. now owns 4,075,721 shares of the company's stock worth $580,383,000 after purchasing an additional 2,216,402 shares during the last quarter. Northern Trust Corp lifted its stake in Datadog by 1.8% in the fourth quarter. Northern Trust Corp now owns 2,754,782 shares of the company's stock valued at $374,623,000 after acquiring an additional 47,491 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its stake in Datadog by 3.5% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 2,391,601 shares of the company's stock valued at $325,234,000 after acquiring an additional 80,781 shares during the last quarter. 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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