Datadog (NASDAQ:DDOG) Announces Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Datadog (NASDAQ:DDOG) announced its earnings results on Thursday. The company reported $0.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.10, Briefing.com reports. Datadog had a return on equity of 4.14% and a net margin of 3.14%.The business had revenue of $1.01 billion during the quarter, compared to analyst estimates of $960.12 million. During the same period last year, the company earned $0.46 EPS. Datadog’s revenue for the quarter was up 32.1% compared to the same quarter last year. Datadog updated its FY 2026 guidance to 2.360-2.440 EPS and its Q2 2026 guidance to 0.570-0.590 EPS.

Here are the key takeaways from Datadog’s conference call:

• Datadog reported quarterly revenue above $1 billion (?$1.01B), up 32% year-over-year, with total ARR exceeding $4 billion, free cash flow of $289M (29% margin), and customers rising to ~33,200.
• The company highlighted strong AI momentum—GA/preview launches (MCP Server, Bits AI Security Analyst, Bits Assistant, GPU Monitoring), ~6,500 customers using AI integrations that represent ~80% of ARR, and new 7-figure/8-figure deals with two hyperscaler AI research labs.
• Platform adoption broadened outside AI: non-AI customer revenue accelerated to mid-20s% YoY and product attach rose (56% of customers use 4+ products, 35% use 6+), while 4,550 customers now have ARR ? $100k (?90% of ARR).
• Guidance for Q2 is $1.07B–$1.08B (29%–31% YoY) and FY2026 revenue is $4.30B–$4.34B (25%–27% YoY), though management noted it applied extra conservatism to projections for its largest customer.
• Datadog is expanding into regulated/public-sector and sovereign-data markets—receiving FedRAMP High, planning a U.K. data center, and promoting Bring-Your-Own-Cloud (CloudPrem) options to win larger, compliance-sensitive workloads.

Datadog Stock Up 31.3%

DDOG stock traded up $45.02 during mid-day trading on Thursday, reaching $188.73. 25,943,463 shares of the company traded hands, compared to its average volume of 5,272,230. The stock has a market cap of $66.54 billion, a price-to-earnings ratio of 608.81, a P/E/G ratio of 52.02 and a beta of 1.30. The company has a quick ratio of 3.38, a current ratio of 3.38 and a debt-to-equity ratio of 0.26. Datadog has a fifty-two week low of $98.01 and a fifty-two week high of $201.69. The firm’s 50 day moving average price is $124.41 and its 200 day moving average price is $136.98.

Insider Transactions at Datadog

In other Datadog news, CTO Alexis Le-Quoc sold 53,912 shares of Datadog stock in a transaction dated Tuesday, March 10th. The stock was sold at an average price of $125.49, for a total transaction of $6,765,416.88. Following the completion of the transaction, the chief technology officer owned 437,257 shares in the company, valued at approximately $54,871,380.93. The trade was a 10.98% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Olivier Pomel sold 68,922 shares of Datadog stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $110.54, for a total value of $7,618,637.88. Following the transaction, the chief executive officer owned 704,821 shares of the company’s stock, valued at $77,910,913.34. This trade represents a 8.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 654,018 shares of company stock valued at $80,903,197 in the last quarter. Company insiders own 6.67% of the company’s stock.

Hedge Funds Weigh In On Datadog

A number of hedge funds have recently added to or reduced their stakes in DDOG. JPL Wealth Management LLC acquired a new position in Datadog during the 3rd quarter valued at about $27,000. Quarry LP acquired a new position in Datadog during the 3rd quarter valued at about $45,000. DV Equities LLC acquired a new position in Datadog during the 4th quarter valued at about $62,000. Geneos Wealth Management Inc. boosted its stake in Datadog by 17.6% during the 1st quarter. Geneos Wealth Management Inc. now owns 769 shares of the company’s stock valued at $76,000 after purchasing an additional 115 shares during the last quarter. Finally, GW&K Investment Management LLC boosted its stake in Datadog by 964.3% during the 4th quarter. GW&K Investment Management LLC now owns 596 shares of the company’s stock valued at $81,000 after purchasing an additional 540 shares during the last quarter. Institutional investors and hedge funds own 78.29% of the company’s stock.

Wall Street Analysts Forecast Growth

DDOG has been the subject of a number of recent analyst reports. Daiwa Securities Group initiated coverage on Datadog in a report on Tuesday, January 27th. They set a “buy” rating and a $190.00 price target for the company. Citigroup upgraded Datadog from a “buy” rating to an “outperform” rating in a report on Thursday. Rothschild & Co Redburn initiated coverage on Datadog in a report on Thursday, April 23rd. They set a “buy” rating and a $170.00 price target for the company. Wolfe Research decreased their price target on Datadog from $185.00 to $160.00 and set an “outperform” rating for the company in a report on Tuesday, February 10th. Finally, The Goldman Sachs Group initiated coverage on Datadog in a report on Monday, January 12th. They set a “sell” rating and a $113.00 price target for the company. One investment analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating, two have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $186.41.

Key Stories Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Management raised Q2 and FY?2026 guidance well above consensus (Q2 EPS $0.57–$0.59; FY EPS $2.36–$2.44), the primary catalyst behind today’s rally. Datadog raises annual forecast
• Positive Sentiment: Strong Q1 print: revenue ? $1.01B (+32% YoY), EPS beat, $335M operating cash flow and $289M free cash flow; expansion in $100k+ ARR customers and several product launches support durable growth. Q1 2026 Results
• Positive Sentiment: Datadog for Government achieved FedRAMP High certification, removing a major compliance hurdle for federal deals and opening a new addressable market in high?security public sector customers. FedRAMP High Certification
• Positive Sentiment: Sell?side support accelerated post?print — multiple firms raised price targets and/or ratings (examples: Wedbush, BTIG, Citizens JMP), adding momentum to the move. Wedbush/analyst notes
• Neutral Sentiment: Unusual options flow and heavy call buying increased intraday volatility and trading volume — this likely magnified price moves but may reflect short?term trader positioning more than fundamentals. Options trade note
• Neutral Sentiment: High trading volume and media coverage can sustain momentum short term; monitor bookings/large?customer commentary in upcoming updates for confirmation.
• Negative Sentiment: Several insiders (CTO, GC, CRO and a director) sold shares under pre?arranged 10b5?1 plans in recent days; while planned, these transactions may concern some investors taking profits after the rally. SEC Form 4
• Negative Sentiment: Valuation is very rich (very high P/E), so even with improving fundamentals the stock may be vulnerable to profit?taking or a pullback if growth expectations slip.

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.