What is Scotiabank's Forecast for Datadog FY2026 Earnings?

Key Points

• Scotiabank raised its FY2026 EPS estimate for Datadog to $0.59 from $0.31, well above the current consensus of $0.35 per share. The firm kept its Outperform rating and $225 price target.
• Datadog’s latest quarterly results beat expectations, with EPS of $0.60 versus $0.51 expected and revenue of $1.01 billion versus $960.12 million expected. Revenue grew 32.1% year over year, and the company guided FY2026 EPS to 2.360–2.440.
• Despite strong analyst support and a consensus Moderate Buy rating, the stock has seen heavy insider selling in recent months. Insiders sold 842,739 shares worth about $121 million over the last 90 days.

Datadog, Inc. (NASDAQ:DDOG - Free Report) - Equities researchers at Scotiabank raised their FY2026 EPS estimates for shares of Datadog in a research report issued on Thursday, May 14th. Scotiabank analyst P. Colville now anticipates that the company will post earnings per share of $0.59 for the year, up from their prior forecast of $0.31. Scotiabank currently has a "Outperform" rating and a $225.00 price objective on the stock. The consensus estimate for Datadog's current full-year earnings is $0.35 per share. Scotiabank also issued estimates for Datadog's FY2027 earnings at $0.97 EPS.

Datadog (NASDAQ:DDOG - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.60 EPS for the quarter, topping analysts' consensus estimates of $0.51 by $0.09. Datadog had a net margin of 3.69% and a return on equity of 4.83%. The business had revenue of $1.01 billion during the quarter, compared to analysts' expectations of $960.12 million. During the same period last year, the company posted $0.46 EPS. The business's revenue was up 32.1% on a year-over-year basis. Datadog has set its FY 2026 guidance at 2.360-2.440 EPS and its Q2 2026 guidance at 0.570-0.590 EPS.

A number of other equities analysts have also recently commented on the stock. Royal Bank Of Canada lifted their price objective on shares of Datadog from $161.00 to $219.00 and gave the stock an "outperform" rating in a research note on Friday, May 8th. Cantor Fitzgerald dropped their price target on shares of Datadog from $220.00 to $150.00 and set an "overweight" rating for the company in a research note on Friday, February 6th. Piper Sandler lifted their price target on shares of Datadog from $195.00 to $230.00 in a research note on Thursday, May 7th. Oppenheimer lifted their price target on shares of Datadog from $200.00 to $220.00 in a research note on Thursday, May 7th. Finally, Barclays lifted their price target on shares of Datadog from $148.00 to $215.00 and gave the stock an "overweight" rating in a research note on Friday, May 8th. One research analyst has rated the stock with a Strong Buy rating, forty have assigned a Buy rating, one has given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $213.38.

Datadog Stock Performance

Shares of NASDAQ:DDOG opened at $207.98 on Monday. Datadog has a 52 week low of $98.01 and a 52 week high of $211.28. The stock has a market capitalization of $74.03 billion, a P/E ratio of 547.33, a PEG ratio of 67.54 and a beta of 1.30. The firm has a fifty day simple moving average of $135.18 and a two-hundred day simple moving average of $138.96. The company has a quick ratio of 3.40, a current ratio of 3.40 and a debt-to-equity ratio of 0.25.

Insider Activity at Datadog

In related news, Director Amit Agarwal sold 20,000 shares of Datadog stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $200.13, for a total transaction of $4,002,600.00. Following the completion of the sale, the director owned 1,640 shares in the company, valued at $328,213.20. This trade represents a 92.42% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Matthew Jacobson sold 52,832 shares of Datadog stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $189.28, for a total transaction of $10,000,040.96. Following the sale, the director owned 622,726 shares of the company's stock, valued at $117,869,577.28. The trade was a 7.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 842,739 shares of company stock worth $121,023,123 over the last ninety days. 6.48% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Datadog

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Westside Investment Management Inc. lifted its holdings in Datadog by 74.3% during the 3rd quarter. Westside Investment Management Inc. now owns 176 shares of the company's stock valued at $27,000 after buying an additional 75 shares in the last quarter. Rothschild Investment LLC increased its position in Datadog by 126.6% during the 3rd quarter. Rothschild Investment LLC now owns 179 shares of the company's stock valued at $25,000 after purchasing an additional 100 shares during the period. Physician Wealth Advisors Inc. increased its position in Datadog by 315.2% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 191 shares of the company's stock valued at $27,000 after purchasing an additional 145 shares during the period. JPL Wealth Management LLC purchased a new position in Datadog during the 3rd quarter valued at about $27,000. Finally, Hazlett Burt & Watson Inc. purchased a new position in Datadog during the 3rd quarter valued at about $28,000. Institutional investors own 78.29% of the company's stock.

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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