Datadog (NASDAQ:DDOG) Updates Q3 2025 Earnings Guidance

Key Points

• Datadog updated its Q3 2025 earnings guidance, forecasting earnings per share (EPS) of 0.440-0.460 and revenue of $847.0-$851.0 million, surpassing analyst estimates.
• Several research firms have raised their price targets for Datadog, with Morgan Stanley setting a target as high as $165.00 while Guggenheim maintains a sell rating at $105.00.
• Insiders have sold nearly 800,000 shares of Datadog stock in recent months, indicating potential concerns about the stock among executives.

Datadog (NASDAQ:DDOG - Get Free Report) updated its third quarter 2025 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 0.440-0.460 for the period, compared to the consensus estimate of 0.417. The company issued revenue guidance of $847.0 million-$851.0 million, compared to the consensus revenue estimate of $819.5 million. Datadog also updated its FY 2025 guidance to 1.800-1.830 EPS.

Analyst Ratings Changes

Several research firms recently weighed in on DDOG. Mizuho lifted their target price on shares of Datadog from $125.00 to $145.00 and gave the company an "outperform" rating in a report on Wednesday, July 16th. Scotiabank set a $130.00 price target on Datadog and gave the stock an "outperform" rating in a research report on Wednesday, May 7th. Morgan Stanley boosted their target price on shares of Datadog from $115.00 to $165.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 10th. Barclays set a $170.00 target price on shares of Datadog and gave the company an "overweight" rating in a research note on Thursday. Finally, Guggenheim reiterated a "sell" rating and issued a $105.00 price objective on shares of Datadog in a report on Tuesday, July 8th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and twenty-four have given a buy rating to the stock. According to data from MarketBeat.com, Datadog currently has an average rating of "Moderate Buy" and an average target price of $149.90.

Datadog Stock Performance

Shares of NASDAQ DDOG traded down $0.58 during midday trading on Thursday, hitting $136.38. 16,630,525 shares of the company's stock were exchanged, compared to its average volume of 5,914,675. Datadog has a twelve month low of $81.63 and a twelve month high of $170.08. The firm has a market cap of $47.10 billion, a P/E ratio of 296.48, a PEG ratio of 73.11 and a beta of 1.02. The stock's 50 day moving average price is $134.51 and its 200-day moving average price is $120.96. The company has a debt-to-equity ratio of 0.34, a current ratio of 2.74 and a quick ratio of 2.74.

Datadog (NASDAQ:DDOG - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported $0.46 EPS for the quarter, beating analysts' consensus estimates of $0.41 by $0.05. Datadog had a return on equity of 6.39% and a net margin of 5.85%. The company had revenue of $826.76 million for the quarter, compared to analyst estimates of $791.72 million. During the same period last year, the company earned $0.43 earnings per share. The company's quarterly revenue was up 28.1% compared to the same quarter last year. Equities research analysts anticipate that Datadog will post 0.34 EPS for the current year.

Insiders Place Their Bets

In other news, CRO Sean Michael Walters sold 9,469 shares of the firm's stock in a transaction on Thursday, July 3rd. The stock was sold at an average price of $150.00, for a total transaction of $1,420,350.00. Following the completion of the sale, the executive directly owned 212,324 shares of the company's stock, valued at $31,848,600. This trade represents a 4.27% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Shardul Shah sold 7,924 shares of the company's stock in a transaction on Tuesday, July 15th. The shares were sold at an average price of $140.80, for a total value of $1,115,699.20. Following the sale, the director directly owned 380,281 shares of the company's stock, valued at approximately $53,543,564.80. This represents a 2.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 794,450 shares of company stock worth $100,732,467. Company insiders own 8.70% of the company's stock.

Hedge Funds Weigh In On Datadog

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DDOG. Bison Wealth LLC acquired a new stake in Datadog during the 4th quarter valued at $228,000. Brighton Jones LLC acquired a new position in Datadog during the fourth quarter valued at $209,000. Empowered Funds LLC lifted its stake in Datadog by 7.0% in the 1st quarter. Empowered Funds LLC now owns 10,313 shares of the company's stock worth $1,023,000 after acquiring an additional 672 shares in the last quarter. Finally, Geneos Wealth Management Inc. boosted its position in Datadog by 17.6% during the 1st quarter. Geneos Wealth Management Inc. now owns 769 shares of the company's stock worth $76,000 after acquiring an additional 115 shares during the period. Institutional investors and hedge funds own 78.29% of the company's stock.

Datadog Company Profile

Datadog, Inc operates an observability and security platform for cloud applications in North America and internationally. The company's products comprise infrastructure and application performance monitoring, log management, digital experience monitoring, continuous profiler, database monitoring, data streams and universal service monitoring, network monitoring, incident management, workflow automation, observability pipelines, cloud cost and cloud security management, application security management, cloud SIEM, sensitive data scanner, and CI visibility.

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