Datadog (NASDAQ:DDOG – Get Free Report) issued an update on its third quarter 2026 earnings guidance on Thursday. The company provided EPS guidance of 0.630-0.650 for the period, compared to the consensus earnings per share estimate of 0.520. The company issued revenue guidance of $1.1 billion-$1.1 billion, compared to the consensus revenue estimate of $1.1 billion. Datadog also updated its FY 2026 guidance to 2.500-2.540 EPS.
Analyst Upgrades and Downgrades
Several research analysts have commented on DDOG shares. Mizuho upped their price objective on shares of Datadog from $220.00 to $300.00 and gave the stock an “outperform” rating in a report on Wednesday, July 15th. Bank of America lifted their target price on shares of Datadog from $260.00 to $280.00 and gave the company a “buy” rating in a research note on Monday, June 8th. Citizens Jmp raised their price objective on shares of Datadog from $225.00 to $311.00 and gave the stock a “market outperform” rating in a report on Monday, July 20th. Needham & Company LLC lifted their price objective on Datadog from $260.00 to $300.00 and gave the company a “buy” rating in a research report on Friday. Finally, Truist Financial raised Datadog from a “hold” rating to a “buy” rating and lifted their price objective for the company from $190.00 to $300.00 in a research report on Monday, June 15th. Two research analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating, three have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $276.32.
Get Our Latest Stock Report on DDOG
Datadog Stock Up 2.0%
Datadog (NASDAQ:DDOG – Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.65 earnings per share for the quarter, topping analysts’ consensus estimates of $0.58 by $0.07. Datadog had a net margin of 4.48% and a return on equity of 5.67%. The business had revenue of $1.12 billion for the quarter, compared to analysts’ expectations of $1.08 billion. During the same quarter in the prior year, the company earned $0.46 earnings per share. The business’s revenue was up 35.6% compared to the same quarter last year. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. As a group, sell-side analysts anticipate that Datadog will post 0.64 earnings per share for the current fiscal year.
Insider Activity at Datadog
In other news, CTO Alexis Le-Quoc sold 53,912 shares of Datadog stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $271.05, for a total value of $14,612,847.60. Following the completion of the transaction, the chief technology officer owned 531,311 shares of the company’s stock, valued at $144,011,846.55. The trade was a 9.21% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Olivier Pomel sold 127,141 shares of the company’s stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $199.84, for a total transaction of $25,407,857.44. Following the completion of the transaction, the chief executive officer owned 835,679 shares in the company, valued at approximately $167,002,091.36. The trade was a 13.21% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,502,163 shares of company stock worth $363,481,842 over the last quarter. 6.48% of the stock is currently owned by company insiders.
Key Headlines Impacting Datadog
Here are the key news stories impacting Datadog this week:
- Positive Sentiment: Datadog delivered a strong second quarter: revenue rose 35.6% year over year to $1.12 billion, exceeding the $1.08 billion consensus estimate, while EPS of $0.65 topped expectations of $0.58 and increased from $0.46 a year earlier. Growth was broad-based across AI and non-AI demand, with billings and remaining performance obligations also supporting future revenue visibility. Datadog Q2 Earnings and Revenues Surpass Estimates
- Positive Sentiment: Management raised its fiscal 2026 outlook to approximately $4.45-$4.47 billion in revenue and $2.50-$2.54 in EPS. Third-quarter EPS guidance of $0.63-$0.65 is above the $0.52 analyst consensus, providing a positive catalyst despite revenue guidance being roughly in line with expectations. Datadog Beats Earnings and Raises Outlook
- Positive Sentiment: Citigroup raised its DDOG price target to $305 and reaffirmed a “Buy” rating. DA Davidson also maintained its “Buy” rating with a $315 target, suggesting analysts see significant upside following the pullback. Datadog Analyst Price Targets
- Neutral Sentiment: CEO Olivier Pomel sold 127,141 shares worth approximately $36.5 million under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by about 17%, but the planned nature of the transaction limits its value as a signal about Datadog’s business outlook. Datadog CEO Stock Sale Filing
- Negative Sentiment: The earlier decline reflected a high valuation and exceptionally high investor expectations rather than a quarterly miss. Investors focused on slowing bookings growth and management’s disclosure that its largest customer, reportedly a major AI company, plans to reduce usage, creating a risk to consumption-based revenue. Datadog Major Customer Usage News
Institutional Investors Weigh In On Datadog
Several institutional investors and hedge funds have recently made changes to their positions in the company. Elevation Point Wealth Partners LLC increased its position in Datadog by 3.3% during the third quarter. Elevation Point Wealth Partners LLC now owns 1,697 shares of the company’s stock worth $242,000 after purchasing an additional 55 shares during the last quarter. Vivaldi Capital Management LP boosted its holdings in shares of Datadog by 2.8% in the 3rd quarter. Vivaldi Capital Management LP now owns 2,689 shares of the company’s stock valued at $383,000 after purchasing an additional 74 shares during the last quarter. Great Lakes Advisors LLC grew its stake in shares of Datadog by 2.3% during the 4th quarter. Great Lakes Advisors LLC now owns 3,697 shares of the company’s stock valued at $503,000 after buying an additional 83 shares during the period. Geneos Wealth Management Inc. grew its stake in shares of Datadog by 17.6% during the 1st quarter. Geneos Wealth Management Inc. now owns 769 shares of the company’s stock valued at $76,000 after buying an additional 115 shares during the period. Finally, Equitable Holdings Inc. increased its holdings in shares of Datadog by 1.8% during the 3rd quarter. Equitable Holdings Inc. now owns 7,346 shares of the company’s stock worth $1,046,000 after buying an additional 127 shares during the last quarter. Institutional investors 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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