Scotiabank Has Positive Outlook for Datadog FY2026 Earnings

Key Points

• Scotiabank raised its FY2026 Datadog EPS estimate to $0.70 from $0.63 and maintained an “Outperform” rating with a $285 price target. It also projects FY2027 EPS of $1.01.
• Datadog’s latest quarter exceeded expectations, with $0.65 EPS versus the $0.58 consensus and revenue of $1.12 billion, up 35.6% year over year.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus rating and an average price target of $276.32, though company insiders have sold more than $374 million in stock over the past 90 days.

Datadog, Inc. (NASDAQ:DDOG - Free Report) - Research analysts at Scotiabank raised their FY2026 earnings estimates for shares of Datadog in a research note issued on Wednesday, August 19th. Scotiabank analyst P. Colville now forecasts that the company will post earnings per share of $0.70 for the year, up from their prior forecast of $0.63. Scotiabank has a "Outperform" rating and a $285.00 price target on the stock. The consensus estimate for Datadog's current full-year earnings is $0.70 per share. Scotiabank also issued estimates for Datadog's FY2027 earnings at $1.01 EPS.

Datadog (NASDAQ:DDOG - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.65 earnings per share for the quarter, topping the consensus estimate of $0.58 by $0.07. Datadog had a net margin of 4.48% and a return on equity of 5.67%. The business had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.08 billion. During the same period in the previous year, the firm posted $0.46 earnings per share. The firm's revenue for the quarter was up 35.6% on a year-over-year basis. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS.

Several other equities analysts have also issued reports on the company. Monness Crespi & Hardt raised their price target on Datadog from $255.00 to $270.00 in a research report on Thursday, May 7th. New Street Research set a $260.00 price objective on Datadog in a research report on Thursday, June 11th. Citigroup boosted their price objective on Datadog from $300.00 to $305.00 and gave the company a "buy" rating in a research report on Friday, August 7th. Wolfe Research reissued an "outperform" rating and set a $295.00 price objective on shares of Datadog in a research note on Thursday, June 11th. Finally, Bank of America raised their target price on shares of Datadog from $260.00 to $280.00 and gave the stock a "buy" rating in a report on Monday, June 8th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Datadog currently has an average rating of "Moderate Buy" and a consensus price target of $276.32.

Datadog Price Performance

DDOG opened at $235.62 on Monday. Datadog has a 12 month low of $98.01 and a 12 month high of $292.72. The company has a current ratio of 3.20, a quick ratio of 3.20 and a debt-to-equity ratio of 0.23. The business's 50-day moving average price is $249.81 and its 200-day moving average price is $186.34. The company has a market cap of $84.61 billion, a P/E ratio of 480.87, a P/E/G ratio of 22.94 and a beta of 1.54.

Institutional Trading of Datadog

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. JPL Wealth Management LLC purchased a new position in shares of Datadog during the third quarter valued at about $27,000. EMC Capital Management bought a new stake in Datadog during the 2nd quarter valued at approximately $28,000. NBC Securities Inc. boosted its position in Datadog by 242.6% during the 4th quarter. NBC Securities Inc. now owns 233 shares of the company's stock valued at $32,000 after acquiring an additional 165 shares in the last quarter. Rothschild Investment LLC grew its holdings in shares of Datadog by 52.5% during the 4th quarter. Rothschild Investment LLC now owns 273 shares of the company's stock worth $37,000 after acquiring an additional 94 shares during the period. Finally, Annis Gardner Whiting Capital Advisors LLC grew its holdings in shares of Datadog by 341.7% during the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 318 shares of the company's stock worth $38,000 after acquiring an additional 246 shares during the period. Hedge funds and other institutional investors own 78.29% of the company's stock.

Insider Activity at Datadog

In other Datadog news, Director Dev Ittycheria sold 120,000 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $248.78, for a total value of $29,853,600.00. Following the completion of the sale, the director owned 39,235 shares in the company, valued at approximately $9,760,883.30. This trade represents a 75.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Olivier Pomel sold 127,141 shares of Datadog stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $231.69, for a total value of $29,457,298.29. Following the completion of the sale, the chief executive officer owned 612,747 shares in the company, valued at approximately $141,967,352.43. This represents a 17.18% 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 1,512,188 shares of company stock worth $374,502,256 over the last 90 days. 6.48% of the stock is owned by insiders.

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.

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