Datadog (NASDAQ:DDOG – Get Free Report) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 2.500-2.540 for the period, compared to the consensus estimate of 2.070. The company issued revenue guidance of $4.5 billion-$4.5 billion, compared to the consensus revenue estimate of $4.3 billion. Datadog also updated its Q3 2026 guidance to 0.630-0.650 EPS.
Wall Street Analyst Weigh In
A number of research firms have issued reports on DDOG. Wall Street Zen raised Datadog from a “hold” rating to a “buy” rating in a research report on Saturday, May 16th. Barclays increased their target price on shares of Datadog from $260.00 to $290.00 and gave the company an “overweight” rating in a research report on Tuesday, July 21st. Oppenheimer raised their target price on shares of Datadog from $220.00 to $300.00 and gave the stock an “outperform” rating in a report on Monday, July 20th. Guggenheim boosted their target price on shares of Datadog from $225.00 to $300.00 and gave the stock a “buy” rating in a research report on Wednesday, July 22nd. Finally, Scotiabank restated an “outperform” rating and issued a $285.00 price objective on shares of Datadog in a research note on Friday. Two research analysts have rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Datadog presently has an average rating of “Moderate Buy” and a consensus price target of $274.05.
Check Out Our Latest Analysis on DDOG
Datadog Price Performance
Datadog (NASDAQ:DDOG – Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.58 by $0.07. Datadog had a net margin of 3.69% and a return on equity of 4.83%. The company had revenue of $1.12 billion for the quarter, compared to analysts’ expectations of $1.08 billion. During the same quarter last year, the company posted $0.46 earnings per share. The firm’s quarterly revenue was up 35.6% on a year-over-year basis. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. Equities research analysts forecast that Datadog will post 0.64 EPS for the current year.
Insider Buying and Selling
In related news, Director Michael James Callahan sold 12,500 shares of the business’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $287.47, for a total value of $3,593,375.00. Following the completion of the sale, the director owned 14,996 shares in the company, valued at approximately $4,310,900.12. The trade was a 45.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Amit Agarwal sold 20,000 shares of the company’s stock in a transaction on Thursday, July 30th. The stock was sold at an average price of $266.82, for a total value of $5,336,400.00. Following the sale, the director owned 1,640 shares of the company’s stock, valued at $437,584.80. This trade represents a 92.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 1,375,022 shares of company stock valued at $327,029,246. Company insiders own 6.48% of the company’s stock.
Key Datadog News
Here are the key news stories impacting Datadog this week:
- Positive Sentiment: Datadog reported second-quarter revenue of $1.12 billion, up 35.6% year over year and above the $1.08 billion consensus estimate. Adjusted earnings of $0.65 per share also exceeded the $0.58 expectation and rose from $0.46 a year earlier. Datadog Q2 Earnings and Revenues Surpass Estimates
- Positive Sentiment: Management raised its fiscal 2026 outlook to approximately $4.45 billion-$4.47 billion in revenue and $2.50-$2.54 in EPS. Third-quarter EPS guidance of $0.63-$0.65 was also above the $0.52 analyst consensus, supporting the long-term growth case. Datadog Beats Earnings Estimates and Raises Outlook
- Positive Sentiment: DA Davidson reaffirmed its “Buy” rating and set a $315 price target, implying substantial upside from the recent trading level. DA Davidson Reaffirms Buy Rating
- Neutral Sentiment: Director Michael James Callahan sold 12,500 shares for approximately $3.6 million under a pre-arranged Rule 10b5-1 plan. The sale reduced his direct holdings by about 45%, but its planned nature makes it a limited signal regarding current business conditions. Datadog Director Stock Sale Filing
- Negative Sentiment: Investors were unsettled by decelerating bookings and management’s disclosure that a major AI customer plans to reduce usage. Because Datadog’s consumption-based revenue is tied to customer activity, the change could pressure near-term growth and contributed to more cautious guidance. Datadog Says Lower Usage From Major AI Customer Could Dent Growth
- Negative Sentiment: The selloff also reflects profit-taking and valuation concerns. With DDOG trading at a very high earnings multiple after a substantial run-up, investors demanded results that exceeded expectations; strong execution was not enough to offset concerns about slower momentum and limited room for error. Datadog Stock Falls as High Expectations Offset Strong Quarter
Hedge Funds Weigh In On Datadog
A number of hedge funds have recently made changes to their positions in the company. Brighton Jones LLC purchased a new stake in Datadog in the 4th quarter valued at $209,000. Bison Wealth LLC acquired a new position in shares of Datadog during the fourth quarter worth about $228,000. Empowered Funds LLC boosted its position in shares of Datadog by 7.0% in the 1st quarter. Empowered Funds LLC now owns 10,313 shares of the company’s stock worth $1,023,000 after buying an additional 672 shares in the last quarter. Geneos Wealth Management Inc. raised its holdings in Datadog by 17.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 769 shares of the company’s stock valued at $76,000 after acquiring an additional 115 shares during the last quarter. Finally, Sivia Capital Partners LLC purchased a new position in Datadog in the second quarter valued at approximately $509,000. Institutional investors and hedge funds own 78.29% of the company’s stock.
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.
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