Upside case
Bull case
$93-58.2%
The bull case prices DDOG at 38x on FY1 earnings, assuming continued execution and no meaningful deceleration in the core business.
Analysis OverviewBuyUpdated Jun 18, 2026
Datadog, Inc. (DDOG) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
48
analysts
41 bullish · 1 bearish · 48 covering DDOG
Strong Buy
0
Buy
41
Hold
6
Sell
1
Strong Sell
0
Consensus Target
$231
+3.7% vs today
Scenario Range
$45 – $93
Model bear to bull value window
Coverage
48
Published analyst ratings
Valuation Context
91.9x
Forward P/E · Market cap $79.4B
DDOG price targets
Three scenarios for where DDOG stock could go
Current
~$223
Confidence
73 / 100
Updated
Jun 18, 2026
Where we are now
Current · $223
Bear
$45
Base
$71
Bull
$93
Market caseClosest to today
Base case
$71-68.2%
At 29x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$45-80.0%
If investor confidence fades or macro conditions deteriorate, a 74x multiple contraction could push DDOG down roughly 80% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Datadog, Inc.
DDOG · NASDAQTechnologySoftware - ApplicationDecember year-end
Datadog is a cloud monitoring and observability platform that helps developers and IT teams track the performance and security of their applications and infrastructure. It generates revenue primarily through subscription-based SaaS fees — charging customers based on usage volume across its monitoring, logging, and security products. The company's key advantage is its integrated platform approach that combines multiple observability tools into a single, unified interface, creating significant switching costs for customers who would otherwise need to manage disparate point solutions.
Market Cap
$79.4B
Revenue TTM
$3.7B
Net Income TTM
$136M
Net Margin
3.7%
DDOG Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
100%Exceptional
12 quarters tracked
Revenue Beat Rate
100%Exceptional
vs consensus estimates
Avg EPS Surprise
+16.0%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$0.46/$0.41
Revenue
$827M/$791M
Q4 2025
EPS
$0.55/$0.46
Revenue
$886M/$853M
Q1 2026
EPS
$0.59/$0.56
Revenue
$953M/$919M
Q2 2026
EPS
$0.60/$0.51
Revenue
$1.0B/$960M
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $0.46/$0.41 | +12.1% | $827M/$791M | +4.5% |
| Q4 2025 | $0.55/$0.46 | +20.2% | $886M/$853M | +3.9% |
| Q1 2026 | $0.59/$0.56 | +6.3% | $953M/$919M | +3.8% |
| Q2 2026 | $0.60/$0.51 | +18.1% | $1.0B/$960M | +4.8% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$4.3B
+18.2% YoY
FY2
$5.1B
+18.0% YoY
EPS Outlook
FY1
$1.64
+340.2% YoY
FY2
$1.57
-3.9% YoY
Trailing FCF (TTM)$1.1B
FCF Margin: 29.4%
Next Earnings
August 6, 2026
Expected EPS
$0.57
Expected Revenue
$1.1B
DDOG beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
DDOG Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $5.7B
Product Mix
Latest annual revenue by segment or product family
Segment breakdown not available for this company.
Geographic Mix
Latest annual revenue by reported region
North America
42.3%
+29.8% YoY
Tap, hover, or focus a slice to inspect segment detail.
North America is the largest reported region at 42.3%, up 29.8% YoY.
DDOG Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Expensive versus peers
Fair value est. $60 — implies -73.1% from today's price.
Premium to Fair Value
73.1%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
DDOG
743.3x
vs
S&P 500
24.4x
+2940% premium
vs Technology Trailing P/E
DDOG
743.3x
vs
Technology
29.0x
+2463% premium
vs DDOG 5Y Avg P/E
Today
743.3x
vs
5Y Average
—
Benchmark unavailable
Forward PE
91.9x
S&P 500
18.8x
+389%
Technology
22.3x
+313%
5Y Avg
—
—
Trailing PE
743.3x
S&P 500
24.4x
+2940%
Technology
29.0x
+2463%
5Y Avg
—
—
PEG Ratio
—
S&P 500
1.66x
—
Technology
1.51x
—
5Y Avg
—
—
EV/EBITDA
1030.2x
S&P 500
15.2x
+6673%
Technology
16.6x
+6097%
5Y Avg
—
—
Price/FCF
79.3x
S&P 500
20.7x
+283%
Technology
19.2x
+313%
5Y Avg
60.9x
+30%
Price/Sales
23.2x
S&P 500
3.1x
+649%
Technology
2.4x
+850%
5Y Avg
16.8x
+38%
Dividend Yield
—
S&P 500
1.91%
—
Technology
1.11%
—
5Y Avg
—
—
| Metric | DDOG | S&P 500 | Technology | 5Y Avg DDOG |
|---|---|---|---|---|
| Forward PE | 91.9x | 18.8x+389% | 22.3x+313% | — |
| Trailing PE | 743.3x | 24.4x+2940% | 29.0x+2463% | — |
| PEG Ratio | — | 1.66x | 1.51x | — |
| EV/EBITDA | 1030.2x | 15.2x+6673% | 16.6x+6097% | — |
| Price/FCF | 79.3x | 20.7x+283% | 19.2x+313% | 60.9x+30% |
| Price/Sales | 23.2x | 3.1x+649% | 2.4x+850% | 16.8x+38% |
| Dividend Yield | — | 1.91% | 1.11% | — |
DDOG trades above S&P 500 benchmarks on 5 of 5 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolDDOG Financial Health
Verdict
Adequate
DDOG generates $1.1B in free cash flow at a 29.4% margin.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$3.7B
Revenue Growth
TTM vs prior year
+29.5%
Gross Margin
Gross profit as a share of revenue
79.9%
Operating Margin
Operating income divided by revenue
-0.7%
Net Margin
Net income divided by revenue
3.7%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$0.37
Free Cash Flow (TTM)
Cash generation after capex
$1.1B
FCF Margin
FCF as share of revenue — the primary cash quality signal
29.4%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
-0.8%
ROA
Return on assets, trailing twelve months
2.1%
Cash & Equivalents
Liquid assets on the balance sheet
$401M
Net Debt
Total debt minus cash
$1.1B
Debt Serviceability
Net debt as a multiple of annual free cash flow
1.1× FCF
~1.1 years to full repayment at current FCF run-rate
ROE *
Return on equity, trailing twelve months
3.8%
* Elevated by buyback-compressed equity — compare ROIC (-0.8%) for an undistorted picture of capital efficiency.
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.0%
Dividend
—
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Current diluted share count
356M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt). ROE marked * where buyback-compressed equity base may inflate the figure.
Open full ratios pageDDOG Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 17, 2026
High Risk
Growth Deceleration
Revenue growth decelerated from 80%+ in 2021 to roughly 27% in 2024 as pandemic-era cloud migration tailwinds faded.
High Risk
Competitive Environment
Datadog operates in a very competitive and rapidly changing environment, which could impact its market position and growth.
Medium
AI Uplift Uncertainty
The AI uplift has not yet re-accelerated growth to prior levels, creating uncertainty about its impact on future performance.
Medium
Forward-Looking Risks
Forward-looking statements are subject to risks and uncertainties, including those described in risk factors sections of reports.
Lower
Event Dependency
Datadog hosts events and webinars, which may not consistently drive engagement or revenue growth.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why DDOG Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 17, 2026
AI workload management
Datadog's ability to deepen its role in managing AI-driven workloads enhances platform stickiness and usage, positioning it well against competitors.
Unified observability platform
Datadog offers a comprehensive solution for monitoring infrastructure metrics, traces, and logs, providing a one-stop-shop for cloud-scale applications.
Strong financial performance
With reported revenue of over $1 billion and positive net income, Datadog demonstrates robust financial health and growth potential.
Innovation pipeline
The company's diversified product suite and continuous innovation, including AI and security enhancements, drive long-term growth and competitiveness.
AI and security enhancements
Recent unveilings of AI Guard and Bring Your Own Cloud capabilities highlight Datadog's commitment to advancing AI and security features, attracting positive analyst sentiment.
SaaS-based scalability
Datadog's SaaS model allows it to efficiently scale and serve cloud applications of any size, making it a flexible solution for diverse customer needs.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
DDOG Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$223.00
52W Range Position
69%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$98.01
+127.5% from the low
52-Week High
$278.70
-20.0% from the high
1 Month
+6.79%
3 Month
+69.89%
YTD
+66.7%
1 Year
+71.5%
3Y CAGR
+32.1%
5Y CAGR
+16.6%
10Y CAGR
+19.5%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
DDOG vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
91.9x
vs 23.3x median
+294% above peer median
Revenue Growth
+18.2%
vs +12.3% median
+48% above peer median
Net Margin
3.7%
vs 8.1% median
-54% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
DDO DDOG Datadog, Inc. | $79.4B | 91.9x | +18.2% | 3.7% | Buy | +3.7% |
DT DT Dynatrace, Inc. | $12.1B | 21.3x | +16.5% | 8.1% | Buy | +12.0% |
EST ESTC Elastic N.V. | $6.1B | 23.3x | +9.2% | 21.1% | Buy | +6.6% |
PAN PANW Palo Alto Networks, Inc. | $196.1B | 76.3x | +12.3% | 7.9% | Buy | +12.9% |
FTN FTNT Fortinet, Inc. | $107.1B | 45.9x | +13.5% | 27.5% | Hold | -31.6% |
TEN TENB Tenable Holdings, Inc. | $3.1B | 13.8x | +11.6% | -1.2% | Buy | +7.2% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
FAQ
7 questionsDDOG Investor Questions
Common questions answered from live analyst data and company financials.
01Is Datadog, Inc. (DDOG) stock a buy or sell in 2026?
Datadog, Inc. (DDOG) is rated Buy by Wall Street analysts as of 2026. Of 48 analysts covering the stock, 41 rate it Buy or Strong Buy, 6 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $231, implying +3.7% from the current price of $223. The bear case scenario is $45 and the bull case is $93.
02What is the DDOG stock price target for 2026?
The Wall Street consensus price target for DDOG is $231 based on 48 analyst estimates. The high-end target is $305 (+36.8% from today), and the low-end target is $139 (-37.7%). The base case model target is $71.
03Is Datadog, Inc. (DDOG) stock overvalued in 2026?
DDOG trades at 91.9x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals expensive versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Datadog, Inc. (DDOG) stock in 2026?
The primary risks for DDOG in 2026 are: (1) Growth Deceleration — Revenue growth decelerated from 80%+ in 2021 to roughly 27% in 2024 as pandemic-era cloud migration tailwinds faded. (2) Competitive Environment — Datadog operates in a very competitive and rapidly changing environment, which could impact its market position and growth. (3) AI Uplift Uncertainty — The AI uplift has not yet re-accelerated growth to prior levels, creating uncertainty about its impact on future performance. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Datadog, Inc.'s revenue and earnings forecast?
Analyst consensus estimates DDOG will report consensus revenue of $4.3B (+18.2% year-over-year) and EPS of $1.64 (+340.2% year-over-year) for the upcoming fiscal year. The following year, analysts project $5.1B in revenue.
06When does Datadog, Inc. (DDOG) report its next earnings?
Datadog, Inc. is expected to report its next earnings on approximately 2026-08-06. Consensus expects EPS of $0.57 and revenue of $1.1B. Over recent quarters, DDOG has beaten EPS estimates 100% of the time.
07How much free cash flow does Datadog, Inc. generate?
Datadog, Inc. (DDOG) generated $1.1B in free cash flow over the trailing twelve months — a free cash flow margin of 29.4%. DDOG returns capital to shareholders through and share repurchases ($0 TTM).