Datadog (NASDAQ:DDOG) Releases Q2 2026 Earnings Guidance

Datadog (NASDAQ:DDOG) issued an update on its second quarter 2026 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 0.570-0.590 for the period, compared to the consensus estimate of 0.410. The company issued revenue guidance of $1.1 billion-$1.1 billion, compared to the consensus revenue estimate of $992.3 million. Datadog also updated its FY 2026 guidance to 2.360-2.440 EPS.

Datadog Stock Performance

Datadog stock traded up $11.43 during mid-day trading on Friday, reaching $200.16. 11,935,276 shares of the company’s stock were exchanged, compared to its average volume of 5,925,940. The business’s fifty day simple moving average is $124.41 and its 200 day simple moving average is $136.98. The firm has a market capitalization of $70.57 billion, a PE ratio of 645.68, a P/E/G ratio of 52.02 and a beta of 1.30. Datadog has a one year low of $98.01 and a one year high of $201.69. The company has a quick ratio of 3.38, a current ratio of 3.38 and a debt-to-equity ratio of 0.26.

Datadog (NASDAQ:DDOG) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.60 EPS for the quarter, topping analysts’ consensus estimates of $0.51 by $0.09. The business had revenue of $1.01 billion for the quarter, compared to analyst estimates of $960.12 million. Datadog had a return on equity of 4.14% and a net margin of 3.14%.Datadog’s quarterly revenue was up 32.1% compared to the same quarter last year. During the same period last year, the company posted $0.46 earnings per share. Datadog has set its FY 2026 guidance at 2.360-2.440 EPS and its Q2 2026 guidance at 0.570-0.590 EPS. On average, sell-side analysts expect that Datadog will post 0.32 earnings per share for the current year.

Analysts Set New Price Targets

A number of analysts recently commented on DDOG shares. Rosenblatt Securities lifted their price target on Datadog from $178.00 to $220.00 and gave the stock a “buy” rating in a report on Friday. Rothschild & Co Redburn assumed coverage on Datadog in a research report on Thursday, April 23rd. They issued a “buy” rating and a $170.00 target price for the company. Wedbush raised their target price on Datadog from $190.00 to $220.00 and gave the stock an “outperform” rating in a research report on Thursday. DA Davidson reissued a “buy” rating and issued a $225.00 target price on shares of Datadog in a research report on Monday. Finally, Daiwa Securities Group assumed coverage on Datadog in a research report on Tuesday, January 27th. They issued a “buy” rating and a $190.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, forty have issued a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $211.76.

Insider Buying and Selling at Datadog

In other news, CTO Alexis Le-Quoc sold 53,912 shares of Datadog stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $125.49, for a total value of $6,765,416.88. Following the completion of the transaction, the chief technology officer directly owned 437,257 shares in the company, valued at approximately $54,871,380.93. The trade was a 10.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Olivier Pomel sold 68,922 shares of Datadog stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $110.54, for a total value of $7,618,637.88. Following the completion of the transaction, the chief executive officer owned 704,821 shares of the company’s stock, valued at approximately $77,910,913.34. This trade represents a 8.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 654,018 shares of company stock valued at $80,903,197. 6.67% of the stock is owned by company insiders.

Key Stories Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog reported Q1 revenue of about $1.01 billion and EPS of $0.60, both above Wall Street estimates, reinforcing the growth story. Datadog Q1 2026 Financial Results
• Positive Sentiment: Management raised Q2 and FY 2026 guidance well above consensus, which is the main catalyst behind the stock’s strength and suggests momentum is carrying into the rest of the year. Reuters article on annual forecast raise
• Positive Sentiment: Multiple analysts lifted price targets after the earnings beat-and-raise, signaling broader confidence that Datadog can keep outperforming. Analyst target hikes
• Positive Sentiment: Datadog for Government received FedRAMP High certification, which could help open more federal and high-security public sector opportunities. FedRAMP High certification
• Positive Sentiment: RBC and other firms upgraded their outlooks and lifted targets, adding to the bullish analyst momentum around the name. RBC analyst commentary
• Neutral Sentiment: Insider selling by several executives and a director was disclosed, but the transactions were pre-arranged 10b5-1 sales and appear more like profit-taking than a change in fundamentals. SEC filing
• Neutral Sentiment: The stock’s sharp run-up has increased volatility, and some trading looks momentum- and options-driven rather than purely fundamental.

Hedge Funds Weigh In On Datadog

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Compound Planning Inc. lifted its stake in Datadog by 17.3% during the fourth quarter. Compound Planning Inc. now owns 8,716 shares of the company’s stock worth $1,185,000 after purchasing an additional 1,284 shares during the last quarter. Corient Private Wealth LLC lifted its stake in Datadog by 127.3% during the fourth quarter. Corient Private Wealth LLC now owns 36,511 shares of the company’s stock worth $4,965,000 after purchasing an additional 20,447 shares during the last quarter. Mercer Global Advisors Inc. ADV lifted its stake in Datadog by 10.3% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 21,643 shares of the company’s stock worth $2,943,000 after purchasing an additional 2,028 shares during the last quarter. Vident Advisory LLC lifted its stake in Datadog by 5.6% during the fourth quarter. Vident Advisory LLC now owns 235,640 shares of the company’s stock worth $32,045,000 after purchasing an additional 12,577 shares during the last quarter. Finally, Delta Global Management LP bought a new stake in Datadog during the fourth quarter worth about $2,686,000. 78.29% of the stock is currently owned by hedge funds and other institutional investors.

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.