Revenue growth re-accelerated to 32.2% in 2026Q1, though operating margins remain near breakeven at 0.7% due to heavy investment in R&D and SG&A.
| Sales/Revenue | 3.67B | 3.43B | 2.68B | 2.13B | 1.68B | 1.03B | 603.47M | 362.78M | 198.08M | 100.76M |
| Revenue Growth % | 29.54% | 27.68% | 26.12% | 27.06% | 62.82% | 70.48% | 66.34% | 83.15% | 96.58% | - |
| Cost of Goods Sold | 738.75M | 686.96M | 516.36M | 410.73M | 347.57M | 234.84M | 130.2M | 88.95M | 46.53M | 23.41M |
| COGS % of Revenue | - | 20.04% | 19.24% | 19.3% | 20.75% | 22.83% | 21.57% | 24.52% | 23.49% | 23.24% |
| Gross Profit | 2.93B | 2.74B | 2.17B | 1.72B | 1.33B | 793.94M | 473.27M | 273.83M | 151.55M | 77.35M |
| Gross Margin % | 79.88% | 79.96% | 80.76% | 80.7% | 79.25% | 77.17% | 78.43% | 75.48% | 76.51% | 76.76% |
| Gross Profit Growth % | - | 26.4% | 26.22% | 29.38% | 67.21% | 67.76% | 72.83% | 80.69% | 95.93% | - |
| Operating Expenses | 2.96B | 2.78B | 2.11B | 1.75B | 1.39B | 813.1M | 487.04M | 293.97M | 162.58M | 80.3M |
| OpEx % of Revenue | - | 81.25% | 78.74% | 82.27% | 82.75% | 79.03% | 80.71% | 81.03% | 82.08% | 79.7% |
| Selling, General & Admin | 1.32B | 1.24B | 960.93M | 788.64M | 633.88M | 393.33M | 276.42M | 182.55M | 107.41M | 55.57M |
| SG&A % of Revenue | - | 36.07% | 35.8% | 37.05% | 37.84% | 38.23% | 45.8% | 50.32% | 54.22% | 55.15% |
| Research & Development | 1.64B | 1.55B | 1.15B | 962.45M | 752.35M | 419.77M | 210.63M | 111.42M | 55.18M | 24.73M |
| R&D % of Revenue | - | 45.18% | 42.94% | 45.22% | 44.91% | 40.8% | 34.9% | 30.71% | 27.86% | 24.55% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -24.63M | -44.37M | 54.28M | -33.46M | -58.7M | -19.16M | -13.77M | -20.14M | -11.03M | -2.96M |
| Operating Margin % | -0.67% | -1.29% | 2.02% | -1.57% | -3.5% | -1.86% | -2.28% | -5.55% | -5.57% | -2.93% |
| Operating Income Growth % | - | -181.74% | 262.22% | 42.99% | -206.41% | -39.08% | 31.61% | -82.54% | -273.24% | - |
| EBITDA | 72.84M | 78.16M | 161.26M | 50.21M | 3.94M | 3.78M | 12.12M | -7.77M | -5.01M | -252K |
| EBITDA Margin % | 1.98% | 2.28% | 6.01% | 2.36% | 0.24% | 0.37% | 2.01% | -2.14% | -2.53% | -0.25% |
| EBITDA Growth % | -35.08% | -51.54% | 221.19% | 1175.29% | 4.1% | -68.81% | 256.04% | -55.18% | -1886.9% | - |
| D&A (Non-Cash Add-back) | 97.47M | 122.53M | 106.98M | 83.67M | 62.63M | 22.94M | 25.9M | 12.37M | 6.03M | 2.7M |
| EBIT | 76.01M | 138.08M | 211.01M | 66.54M | -21.54M | 2.63M | 8.21M | -15.98M | -10.24M | -2.11M |
| Net Interest Income | 135.18M | -11.06M | 148.25M | 97.16M | 18.4M | 360K | -9.2M | 0 | 0 | 0 |
| Interest Income | 152.23M | 0 | 155.32M | 103.46M | 34.93M | 21.41M | 21.23M | 0 | 0 | 0 |
| Interest Expense | 17.05M | 11.06M | 7.07M | 6.3M | 16.54M | 21.05M | 30.43M | 0 | 0 | 0 |
| Other Income/Expense | 178.78M | 171.39M | 149.66M | 93.7M | 20.63M | 734K | -8.45M | 4.16M | 793K | 843K |
| Pretax Income | 154.16M | 127.02M | 203.94M | 60.23M | -38.07M | -18.42M | -22.22M | -15.98M | -10.24M | -2.11M |
| Pretax Margin % | 4.2% | 3.71% | 7.6% | 2.83% | -2.27% | -1.79% | -3.68% | -4.4% | -5.17% | -2.1% |
| Income Tax | 18.48M | 19.28M | 20.19M | 11.67M | 12.09M | 2.32M | 2.33M | 734K | 522K | 457K |
| Effective Tax Rate % | 11.99% | 15.18% | 9.9% | 19.37% | -31.76% | -12.61% | -10.46% | -4.59% | -5.1% | -21.63% |
| Net Income | 135.67M | 107.74M | 183.75M | 48.57M | -50.16M | -20.75M | -24.55M | -16.71M | -10.76M | -2.57M |
| Net Margin % | 3.69% | 3.14% | 6.85% | 2.28% | -2.99% | -2.02% | -4.07% | -4.61% | -5.43% | -2.55% |
| Net Income Growth % | -18.15% | -41.36% | 278.33% | 196.83% | -141.79% | 15.49% | -46.9% | -55.27% | -318.75% | - |
| Net Income (Continuing) | 135.67M | 107.74M | 183.75M | 48.57M | -50.16M | -20.75M | -24.55M | -16.71M | -10.76M | -2.57M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.37 | 0.30 | 0.51 | 0.14 | -0.16 | -0.07 | -0.08 | -0.12 | -0.15 | -0.03 |
| EPS Growth % | -16.79% | -41.18% | 264.29% | 187.5% | -138.45% | 17.87% | 31.92% | 20% | -364.4% | - |
| EPS (Basic) | - | 0.31 | 0.55 | 0.15 | -0.16 | -0.07 | -0.08 | -0.12 | -0.15 | -0.03 |
| Diluted Shares Outstanding | 364.73M | 363.47M | 358.64M | 350.29M | 315.41M | 309.05M | 300.35M | 139.87M | 70.95M | 79.57M |
| Basic Shares Outstanding | 353.27M | 347.31M | 336.17M | 324.03M | 315.41M | 309.05M | 300.35M | 139.87M | 70.95M | 79.57M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
High stock-based compensation dilution
According to the latest quarterly income statement, Datadog achieved a 32.2% year-over-year revenue growth rate in 2026Q1, marking a notable acceleration from the 25.1% growth observed in 2024Q4 and suggesting that the company's land-and-expand strategy remains effective despite the increasing size of its revenue base.
The recent uptick in top-line expansion suggests that the company is successfully navigating cloud optimization headwinds that previously pressured growth. Investors should monitor whether this acceleration is driven by new product adoption or a broader recovery in enterprise cloud workload consumption.
Based on reported financial figures, Datadog's gross margin has experienced a gradual contraction from 82.2% in 2023Q4 to 79.2% in 2026Q1, indicating potential shifts in cloud hosting costs or a change in the product mix toward lower-margin service offerings within the observability platform.
While an 80% gross margin remains best-in-class for SaaS, the consistent downward trend suggests that the company's reliance on third-party cloud infrastructure may be creating a structural drag. This warrants further investigation into whether the company possesses sufficient pricing power to offset rising egress and storage costs.
As reported in recent filings, Datadog consistently issues significant stock-based compensation, with expenses reaching $205.4 million in 2025Q4, which effectively obscures the company's true GAAP profitability and creates a persistent disconnect between reported net income and the actual cash-based operational performance of the business.
The reliance on equity-based incentives suggests that the company is prioritizing talent retention over immediate GAAP earnings, which may dilute shareholder value over time. Investors should focus on the gap between net income and cash flow to determine if the business is truly self-sustaining.
Based on the provided income statement data, Datadog's operating margin has fluctuated near breakeven, reaching only 0.7% in 2026Q1, as the company continues to aggressively deploy capital into R&D and SG&A to maintain its competitive position against both legacy and cloud-native observability rivals.
The company's cost structure appears heavily weighted toward growth-oriented expenditures, which may indicate that management views market share capture as more critical than near-term margin expansion. This strategy appears to leave little room for error should revenue growth rates fail to meet high market expectations.
Quick answers to the most common questions about buying DDOG stock.
For fiscal year 2025, Datadog, Inc. (DDOG) reported total revenue of $3.43B. This represents a 3301.3% increase compared to $100.8M in 2017.
Datadog, Inc. (DDOG) is profitable, generating $107.7M in net income for the fiscal year ending 2025 with a net profit margin of 3.1%.
Datadog, Inc. (DDOG) reported an operating income of $-44.4M, resulting in an operating profit margin of -1.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Datadog, Inc. (DDOG) generated $2.74B in gross profit for the year, representing a gross profit margin of 80.0%. This demonstrates the company's core pricing power and production efficiency.