Datadog (NASDAQ:DDOG) Updates FY 2026 Earnings Guidance

Key Points

• Datadog raised its FY 2026 outlook, forecasting EPS of $2.50–$2.54 versus the $2.07 consensus and revenue of approximately $4.5 billion versus the $4.3 billion estimate. Q3 EPS guidance was set at $0.63–$0.65.
• The company’s latest quarterly results also exceeded expectations, with EPS of $0.65 compared with the $0.58 consensus estimate.
• Analyst sentiment remains positive, with several firms raising price targets and the stock receiving a consensus “Moderate Buy” rating; however, Datadog’s very high valuation and recent insider selling pose potential risks.

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 2.500-2.540 for the period, compared to the consensus 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 Stock Down 1.7%

Datadog stock opened at $283.17 on Thursday. Datadog has a one year low of $98.01 and a one year high of $292.72. The stock has a fifty day moving average of $249.48 and a 200 day moving average of $176.68. The company has a debt-to-equity ratio of 0.25, a quick ratio of 3.40 and a current ratio of 3.40. The stock has a market cap of $100.80 billion, a PE ratio of 745.20, a price-to-earnings-growth ratio of 29.19 and a beta of 1.54.

Datadog (NASDAQ:DDOG - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $0.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.58 by $0.07. Datadog had a return on equity of 4.83% and a net margin of 3.69%.Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. As a group, sell-side analysts predict that Datadog will post 0.64 EPS for the current year.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on DDOG shares. Citigroup increased their price objective on shares of Datadog from $270.00 to $300.00 and gave the stock a "buy" rating in a research note on Tuesday, July 28th. Citizens Jmp boosted their target price on shares of Datadog from $225.00 to $311.00 and gave the company a "market outperform" rating in a research report on Monday, July 20th. TD Cowen upped their target price on shares of Datadog from $260.00 to $300.00 and gave the company a "buy" rating in a report on Wednesday, July 22nd. New Street Research set a $260.00 price target on shares of Datadog in a research report on Thursday, June 11th. Finally, Zacks Research upgraded shares of Datadog from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 7th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-nine have issued a Buy rating, three have given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $271.57.

Insider Activity

In other Datadog news, Director Michael James Callahan sold 12,500 shares of Datadog stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $267.47, for a total transaction of $3,343,375.00. Following the transaction, the director owned 14,996 shares of the company's stock, valued at $4,010,980.12. The trade was a 45.46% decrease in their ownership of the stock. The sale 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 43,224 shares of the company's stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $265.23, for a total transaction of $11,464,301.52. Following the completion of the transaction, the chief technology officer owned 509,805 shares of the company's stock, valued at approximately $135,215,580.15. The trade was a 7.82% decrease in their ownership of the stock. 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 1,437,118 shares of company stock valued at $337,708,784. 6.48% of the stock is owned by insiders.

Trending Headlines about Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Analysts continue to raise their expectations. Cantor Fitzgerald lifted its price target to $327 and maintained an overweight rating, while Canaccord Genuity raised its target to $295 and Rosenblatt Securities increased its target to $305; all three firms retained buy-equivalent ratings. These revisions reflect confidence in Datadog’s AI products, platform expansion and demand for observability and security tools. Cantor Fitzgerald price target article
• Positive Sentiment: Datadog enters its earnings report with solid operating momentum. The company’s prior quarter delivered revenue of $1.01 billion, up 32.1% year over year, and adjusted earnings of $0.60 per share, exceeding consensus estimates. Investors are looking for continued customer additions, usage growth and traction from AI-related products in the upcoming results. Datadog Q2 earnings outlook
• Neutral Sentiment: Datadog will present at several investor conferences, including Canaccord Genuity’s Growth Conference on August 12, Citi’s Global TMT Conference on September 8 and Goldman Sachs’ Communacopia & Technology Conference. The events could provide updates on demand, AI adoption and guidance, but the announcement itself does not change financial forecasts. Datadog investor conferences announcement
• Negative Sentiment: Valuation and earnings risk remain significant. Datadog trades at a very high earnings multiple, so any shortfall in revenue growth, margins, customer metrics or forward guidance could trigger volatility. The company is expected to report quarterly earnings on Thursday, making the near-term reaction especially dependent on results relative to elevated expectations. Datadog Q2 earnings preview
• Negative Sentiment: Director Amit Agarwal sold 20,000 shares for approximately $5.3 million, reducing his direct ownership by more than 92%. The sale was conducted under a pre-arranged Rule 10b5-1 plan, limiting its bearish significance, but repeated insider selling may still weigh modestly on sentiment. SEC insider transaction filing

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of DDOG. Brighton Jones LLC bought a new position in Datadog in the 4th quarter worth $209,000. Bison Wealth LLC bought a new stake in Datadog during the fourth quarter valued at about $228,000. Empowered Funds LLC raised its holdings in Datadog by 7.0% during the first quarter. Empowered Funds LLC now owns 10,313 shares of the company's stock valued at $1,023,000 after acquiring an additional 672 shares during the period. Geneos Wealth Management Inc. lifted its position in shares of Datadog by 17.6% in the first quarter. Geneos Wealth Management Inc. now owns 769 shares of the company's stock valued at $76,000 after acquiring an additional 115 shares in the last quarter. Finally, Sivia Capital Partners LLC purchased a new position in shares of Datadog in the second quarter valued at about $509,000. Hedge funds and other institutional investors 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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