Datadog, Inc. provides an analytics and monitoring platform for developers, information technology operations teams, and business users in the cloud in North America and internationally. The company is headquartered in New York, New York.
| Revenue (TTM) | $4.28B |
| Gross Profit (TTM) | $3.41B |
| EBITDA | $170.27M |
| Operating Margin | 6.33% |
| Return on Equity | 6.43% |
| Return on Assets | 0.91% |
| Revenue/Share (TTM) | $12.06 |
| Book Value | $13.06 |
| Price-to-Book | 13.37 |
| Price-to-Sales (TTM) | 15.11 |
| EV/Revenue | 13.82 |
| EV/EBITDA | 156.73 |
| Quarterly Earnings Growth (YoY) | 231.60% |
| Quarterly Revenue Growth (YoY) | 35.20% |
| Shares Outstanding | $337.31M |
| Float | $334.84M |
| % Insiders | 0.56% |
| % Institutions | 92.63% |
Volatility is currently expanding
DDOG's Infrastructure Monitoring surpasses $2B in ARR as Q3 revenues beat estimates, with broad-based growth, rising AI adoption and expanding platform usage.
DDOG's Q3 EPS rises 47.3% and revenues climb 35.2%, beating estimates as AI adoption widens. Q4 guidance assumes its largest customer's minimum commitment.
Datadog's Q3 revenues surge 35%, with adjusted EPS beating estimates, but AI customer discounts and cautious Q4 guidance temper its growth outlook.
Datadog faces near-term downside risk as AI-related growth optimism fades and guidance disappoints. Q3 revenue growth accelerated to 35.4%, but Q4 guidance signals a slowdown to 26%, driven by large customer volatility and lower-priced renewals. DDOG remains highly valued at over 63x 2027 EPS targets, with robust free cash flow and a $5 billion net cash balance, yet share repurchases are not attractive.
Datadog, Inc. delivered strong Q3 results, with 35% YoY revenue growth and a surge in GAAP operating income. I maintain a Hold rating due to uncertainty around DDOG's largest customer and signs of moderating sequential growth. Despite a sharp post-earnings selloff, DDOG still trades at a premium valuation—12.2x forward sales—well above software peers.
Datadog beat estimates, raised its full-year outlook for the third straight quarter, and still watched its stock crater 14%. The reason buried in the guidance tells a more complicated story than the sell-off suggests.
Datadog, Inc. (DDOG) Q3 2026 Earnings Call Transcript
Datadog NASDAQ: DDOG reported third-quarter 2026 revenue of $1.197 billion, up 35% from a year earlier and above the high end of its guidance range, as the cloud monitoring and security provider cited broad demand across its customer base and continued growth from AI-related workloads.
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Not every company tied to artificial intelligence (AI) is attracting capital equally. While investors have grown more “selective” toward software names after sharp selloffs in stocks such as Fortinet and have questioned the economics of heavily leveraged AI infrastructure builders, money continues to flow toward companies selling the tools, software, and systems that power the AI boom.
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