Datadog (NASDAQ:DDOG) Issues Q1 2026 Earnings Guidance

Datadog (NASDAQ:DDOG) issued an update on its first quarter 2026 earnings guidance on Tuesday morning. The company provided EPS guidance of 0.490-0.510 for the period, compared to the consensus EPS estimate of 0.350. The company issued revenue guidance of $951.0 million-$961.0 million, compared to the consensus revenue estimate of $932.3 million. Datadog also updated its FY 2026 guidance to 2.080-2.160 EPS.

Datadog Stock Performance

Datadog stock opened at $130.28 on Tuesday. Datadog has a fifty-two week low of $81.63 and a fifty-two week high of $201.69. The company has a market capitalization of $45.69 billion, a PE ratio of 419.03, a P/E/G ratio of 19.95 and a beta of 1.27. The company has a 50 day moving average price of $134.40 and a 200-day moving average price of $144.20. The company has a debt-to-equity ratio of 0.29, a quick ratio of 3.66 and a current ratio of 3.66.

Datadog (NASDAQ:DDOG) last released its quarterly earnings results on Tuesday, February 10th. The company reported $0.59 EPS for the quarter, beating the consensus estimate of $0.55 by $0.04. The business had revenue of $953.19 million during the quarter, compared to analyst estimates of $916.53 million. Datadog had a net margin of 3.32% and a return on equity of 4.14%. The company’s quarterly revenue was up 29.2% on a year-over-year basis. During the same period in the prior year, the firm posted $0.49 earnings per share. Datadog has set its FY 2026 guidance at 2.080-2.160 EPS and its Q1 2026 guidance at 0.490-0.510 EPS. As a group, equities analysts forecast that Datadog will post 0.34 earnings per share for the current year.

Analysts Set New Price Targets

Several research analysts recently weighed in on DDOG shares. Needham & Company LLC lifted their price target on Datadog from $175.00 to $220.00 and gave the company a “buy” rating in a research report on Thursday, November 6th. Oppenheimer raised their price objective on Datadog from $165.00 to $195.00 and gave the company an “outperform” rating in a report on Friday, October 17th. Wells Fargo & Company increased their price target on shares of Datadog from $190.00 to $230.00 and gave the company an “overweight” rating in a research note on Friday, November 7th. JPMorgan Chase & Co. lifted their price target on shares of Datadog from $140.00 to $200.00 and gave the company an “overweight” rating in a research report on Friday, November 7th. Finally, BMO Capital Markets cut their target price on shares of Datadog from $215.00 to $170.00 and set an “outperform” rating on the stock in a research note on Thursday, January 29th. Thirty-six research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $184.38.

Insider Buying and Selling

In related news, CTO Alexis Le-Quoc sold 53,912 shares of the company’s stock in a transaction on Monday, December 8th. The shares were sold at an average price of $154.05, for a total value of $8,305,143.60. Following the completion of the sale, the chief technology officer owned 295,448 shares in the company, valued at $45,513,764.40. This represents a 15.43% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Olivier Pomel sold 100,754 shares of the stock in a transaction that occurred on Monday, November 17th. The stock was sold at an average price of $181.18, for a total value of $18,254,609.72. Following the sale, the chief executive officer directly owned 533,358 shares of the company’s stock, valued at $96,633,802.44. The trade was a 15.89% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 538,917 shares of company stock worth $86,804,288. Insiders own 8.70% of the company’s stock.

Key Stories Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q4 results beat consensus — Datadog reported $0.59 EPS vs. $0.55 expected and revenue of ~$953M, above estimates, showing ~29% y/y revenue growth. Datadog (DDOG) Surpasses Q4 Earnings and Revenue Estimates
• Positive Sentiment: Outlook materially raised — Datadog guided Q1 EPS to $0.490–0.510 (vs. street ~$0.35) and FY26 EPS to $2.080–2.160 (vs. consensus ~1.60), and gave revenue targets above expectations; that upside guidance is the main catalyst. Datadog Stock Surges After Earnings. Software Gets Some Rare Good News.
• Positive Sentiment: Operational strength and product momentum — Datadog reported strong cash flow ($1,050M operating, $915M free cash flow FY25), growth in large customers (603 $1M+ ARR customers vs. 462 a year ago), and GA launches (Bits AI SRE Agent, Storage Management, Feature Flags, Data Observability). Datadog Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Neutral Sentiment: Positive media coverage amplifies investor attention — major outlets highlighted the beat-and-raise, helping sentiment and flow into software names. Datadog Stock Surges After Earnings. Software Gets Some Rare Good News.
• Neutral Sentiment: Broader market tailwinds for software stocks (improving investor sentiment/Fear & Greed index) likely amplified the move, rather than company-specific news alone. Nasdaq Jumps Over 200 Points As Software Stocks Rebound
• Neutral Sentiment: Competitive/technology risks noted — analysis on AI agents suggests potential pressure on Datadog’s model over time; worth monitoring but not an immediate headwind to guidance-driven move. AI Agents Challenge Datadog’s Model While Valuation Signals Potential Upside
• Negative Sentiment: Some analysts trimmed price targets ahead of earnings (RBC, Cantor Fitzgerald, Jefferies lowered targets to ~$150–160); these cuts reflect valuation concerns and temper upside at current levels. RBC cuts price target on Datadog

Institutional Investors Weigh In On Datadog

A number of large investors have recently modified their holdings of DDOG. Elevation Point Wealth Partners LLC boosted its position in Datadog by 3.3% in the 3rd quarter. Elevation Point Wealth Partners LLC now owns 1,697 shares of the company’s stock valued at $242,000 after buying an additional 55 shares during the last quarter. Vivaldi Capital Management LP lifted its stake in shares of Datadog by 2.8% in the third quarter. Vivaldi Capital Management LP now owns 2,689 shares of the company’s stock worth $383,000 after acquiring an additional 74 shares in the last quarter. Geneos Wealth Management Inc. boosted its holdings in Datadog by 17.6% in the first quarter. Geneos Wealth Management Inc. now owns 769 shares of the company’s stock valued at $76,000 after purchasing an additional 115 shares during the last quarter. Equitable Holdings Inc. grew its stake in Datadog by 1.8% during the 3rd quarter. Equitable Holdings Inc. now owns 7,346 shares of the company’s stock valued at $1,046,000 after purchasing an additional 127 shares in the last quarter. Finally, Captrust Financial Advisors increased its holdings in Datadog by 0.9% during the 3rd quarter. Captrust Financial Advisors now owns 17,720 shares of the company’s stock worth $2,523,000 after purchasing an additional 157 shares during the last quarter. Institutional investors and hedge funds own 78.29% of the company’s stock.

Datadog Company Profile

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.