Datadog's revenue growth reaccelerated to 35.6% YoY in 2026Q2, driven by AI workload demand, while gross margins remained stable near 80%. However, operating leverage remains elusive as R&D and SG&A consume 78% of revenue, and stock-based compensation of $220.3M exceeds operating income, masking true profitability.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth accelerated to 35.6% YoY in 2026Q2 with gross margin at 78.6%, yet operating margin remains thin at 0.5% as R&D and SG&A total 78% of revenue.
Datadog's ability to deepen its role in managing AI-driven workloads enhances platform stickiness and usage, positioning it well against competitors.
Datadog offers a comprehensive solution for monitoring infrastructure metrics, traces, and logs, providing a one-stop-shop for cloud-scale applications.
With reported revenue of over $1 billion and positive net income, Datadog demonstrates robust financial health and growth potential.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Nov 4, 2026 | $0.81+26.0% vs $0.64 | $1.2B+4.4% vs $1.1B |
Q3 2026 Aug 6, 2026 | $0.65+11.5% vs $0.58 | $1.1B+3.9% vs $1.1B |
Q2 2026 May 7, 2026 | $0.60+18.1% vs $0.51 | $1.0B+4.8% vs $960M |
Q1 2026 Feb 10, 2026 | $0.59+6.3% vs $0.56 | $953M+3.8% vs $919M |
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.
Benchmark DDOG against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Datadog, Inc. (DDOG)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $179.04 | $63.73B | 596.80 | 27.68% | 3.14% | 3.34% | — | |
| $43.44 | $12.66B | 80.44 | 18.82% | 7.42% | 6.42% | — | |
| $86.08 | $8.91B | 25.10 | 17.26% | 20.84% | 35.31% | — | |
| $313.84 | $213.89B | 196.15 | 14.87% | 2.67% | 1.68% | — | |
| $118.84 | $87.07B | 48.91 | 14.17% | 28.96% | 151.52% | — | |
| $42.13 | $4.65B | -140.43 | 11.04% | 1.48% | 8.46% | — |
Datadog, Inc. (DDOG) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Datadog, Inc. (DDOG) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 6, 2026·SEC
Jun 16, 2026·SEC
May 7, 2026·SEC
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Datadog, Inc. (DDOG) stock FAQ — growth, dividends, profitability & financials explained
Datadog, Inc. (DDOG) reported $3.97B in revenue over the trailing twelve months. Revenue was $3.43B in fiscal year 2025. That is 3301% more than the $100.8M of fiscal year 2017.
Datadog, Inc. (DDOG) grew revenue by 27.7% in fiscal year 2025, compared with the prior fiscal year.
Yes. Datadog, Inc. (DDOG) earned $177.6M in net income over the trailing twelve months (a 4.5% net margin).
Datadog, Inc. (DDOG) had a return on equity (ROE) of 3.3% in fiscal year 2025. That is below the market's typical 10-15%.
Datadog, Inc. (DDOG) generated $1.15B in free cash flow over the trailing twelve months.
