Datadog (NASDAQ:DDOG) Releases Q3 2026 Earnings Guidance

Datadog (NASDAQ:DDOG) updated its third quarter 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 0.630-0.650 for the period, compared to the consensus earnings per share estimate of 0.520. The company issued revenue guidance of $1.1 billion-$1.1 billion, compared to the consensus revenue estimate of $1.1 billion. Datadog also updated its FY 2026 guidance to 2.500-2.540 EPS.

Wall Street Analyst Weigh In

A number of research firms have commented on DDOG. Canadian Imperial Bank of Commerce increased their price target on Datadog from $250.00 to $280.00 and gave the company an “outperform” rating in a research note on Wednesday, June 10th. Arete Research boosted their price target on Datadog from $260.00 to $340.00 and gave the stock a “buy” rating in a research note on Tuesday, June 23rd. Zacks Research upgraded shares of Datadog from a “hold” rating to a “strong-buy” rating in a report on Tuesday, July 7th. Wall Street Zen raised shares of Datadog from a “hold” rating to a “buy” rating in a research report on Saturday, May 16th. Finally, Benchmark reiterated a “buy” rating on shares of Datadog in a research note on Tuesday, July 28th. Two analysts have rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $271.57.

Datadog Stock Performance

Shares of DDOG stock opened at $283.17 on Thursday. The business has a fifty day moving average of $249.48 and a 200 day moving average of $176.68. Datadog has a 1 year low of $98.01 and a 1 year high of $292.72. The company has a debt-to-equity ratio of 0.25, a current ratio of 3.40 and a quick ratio of 3.40. The firm has a market capitalization of $100.80 billion, a price-to-earnings ratio of 745.20, a price-to-earnings-growth ratio of 29.19 and a beta of 1.54.

Datadog (NASDAQ:DDOG) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.65 earnings per share for the quarter, beating 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, research analysts expect that Datadog will post 0.64 earnings per share for the current year.

Insider Transactions at Datadog

In other Datadog news, CEO Olivier Pomel sold 47,054 shares of the firm’s stock in a transaction that occurred on Thursday, July 23rd. The shares were sold at an average price of $244.79, for a total transaction of $11,518,348.66. Following the completion of the transaction, the chief executive officer directly owned 612,747 shares of the company’s stock, valued at approximately $149,994,338.13. This trade represents a 7.13% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael James Callahan sold 12,500 shares of the firm’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $267.47, for a total transaction of $3,343,375.00. Following the transaction, the director directly owned 14,996 shares of the company’s stock, valued at $4,010,980.12. This represents a 45.46% 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. Over the last three months, insiders sold 1,437,118 shares of company stock worth $337,708,784. 6.48% of the stock is owned by company insiders.

Datadog News Summary

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 Trading of Datadog

A number of hedge funds and other institutional investors have recently made changes to their positions in DDOG. Brighton Jones LLC acquired a new stake in Datadog during the 4th quarter worth about $209,000. Bison Wealth LLC acquired a new position in shares of Datadog in the 4th quarter valued at about $228,000. Empowered Funds LLC boosted its stake in shares of Datadog by 7.0% in the first quarter. Empowered Funds LLC now owns 10,313 shares of the company’s stock worth $1,023,000 after buying an additional 672 shares during the last quarter. Geneos Wealth Management Inc. boosted its stake in shares of Datadog by 17.6% in the first quarter. Geneos Wealth Management Inc. now owns 769 shares of the company’s stock worth $76,000 after buying an additional 115 shares during the last quarter. Finally, Sivia Capital Partners LLC acquired a new stake in Datadog during the second quarter worth about $509,000. 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.