Datadog (NASDAQ:DDOG) Releases FY 2026 Earnings Guidance

Datadog (NASDAQ:DDOG) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 2.080-2.160 for the period, compared to the consensus earnings per share estimate of 1.600. The company issued revenue guidance of $4.1 billion-$4.1 billion, compared to the consensus revenue estimate of $4.1 billion. Datadog also updated its Q1 2026 guidance to 0.490-0.510 EPS.

Analyst Upgrades and Downgrades

DDOG has been the topic of a number of recent analyst reports. Scotiabank dropped their price target on shares of Datadog from $180.00 to $160.00 and set a “sector outperform” rating on the stock in a research note on Wednesday. Macquarie Infrastructure lifted their price objective on Datadog from $175.00 to $220.00 and gave the company an “outperform” rating in a report on Friday, November 7th. Oppenheimer boosted their target price on Datadog from $165.00 to $195.00 and gave the stock an “outperform” rating in a research report on Friday, October 17th. Weiss Ratings reissued a “sell (d+)” rating on shares of Datadog in a report on Wednesday, January 21st. Finally, Sanford C. Bernstein restated an “outperform” rating on shares of Datadog in a research note on Wednesday, January 21st. Thirty-seven analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $178.25.

Datadog Price Performance

DDOG stock opened at $125.52 on Wednesday. The company has a quick ratio of 3.66, a current ratio of 3.66 and a debt-to-equity ratio of 0.29. The stock has a market capitalization of $44.02 billion, a price-to-earnings ratio of 406.35, a price-to-earnings-growth ratio of 20.37 and a beta of 1.27. The stock’s fifty day simple moving average is $133.87 and its 200-day simple moving average is $144.06. Datadog has a 52-week low of $81.63 and a 52-week high of $201.69.

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

Insider Transactions at Datadog

In related news, CEO Olivier Pomel sold 11,195 shares of the company’s stock in a transaction on Wednesday, December 17th. The shares were sold at an average price of $137.93, for a total transaction of $1,544,126.35. Following the completion of the sale, the chief executive officer directly owned 518,133 shares of the company’s stock, valued at approximately $71,466,084.69. This represents a 2.11% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Shardul Shah sold 7,916 shares of the stock in a transaction dated Tuesday, January 13th. The shares were sold at an average price of $124.89, for a total value of $988,629.24. Following the completion of the sale, the director owned 340,701 shares of the company’s stock, valued at approximately $42,550,147.89. This trade represents a 2.27% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 538,917 shares of company stock valued at $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 beat and upbeat guidance: DDOG reported $953M revenue (+29% YoY) and $0.59 EPS, beating estimates, and issued a strong FY2026 EPS/ revenue outlook and Q1 guidance — the core driver of the post-earnings rally. Reuters: Datadog beats quarterly estimates
• Positive Sentiment: Product and cash-flow highlights: Datadog disclosed new AI features (Bits AI SRE Agent, Storage Management, Feature Flags, Data Observability) and strong cash generation (>$900M free cash flow in FY2025), supporting long-term growth narrative. GlobeNewswire: Q4 & FY2025 results
• Positive Sentiment: Market reaction and coverage: Multiple outlets note a sizable share rally after the beat and guidance (reports of ~16% intraday jump), reflecting strong investor reception to results. ProactiveInvestors: Shares surge after Q4 beat
• Positive Sentiment: Analyst reaffirmation: Rosenblatt and others reiterated buy ratings (Rosenblatt: $185 PT), which reinforces continued bullish sentiment among some brokers. Benzinga: Rosenblatt reaffirms buy
• Neutral Sentiment: Market context — software rebound: Broader software/AI-related flows and improved investor sentiment are supporting rebounds in high-growth software names, including Datadog; this is macro support rather than company-specific. Benzinga: Nasdaq & software rebound
• Neutral Sentiment: Opinion/analysis pieces debate valuation: Several analysts/commentators highlight the beat but question rich multiples — useful context for investors assessing risk/reward. Seeking Alpha: Commentary
• Negative Sentiment: Multiple price-target cuts: Several firms trimmed PTs (Wolfe, Scotiabank, Needham, RBC, BTIG lowered targets to the $150–$170 range), which can cap near-term upside despite buy/outperform ratings. MarketScreener: Wolfe PT cut
• Negative Sentiment: Needham & others cut PTs materially (e.g., Needham to $155 from $220), indicating some analysts see valuation risk even after the beat. Benzinga: Needham PT cut
• Neutral Sentiment: Short-interest data unclear: reported short-interest figures look anomalous/unchanged in the snapshot provided, so no clear short-squeeze signal. Yahoo Finance / earnings transcript

Institutional Trading of Datadog

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. J.W. Cole Advisors Inc. boosted its stake in Datadog by 22.9% during the 4th quarter. J.W. Cole Advisors Inc. now owns 2,387 shares of the company’s stock valued at $325,000 after acquiring an additional 445 shares during the last quarter. Vise Technologies Inc. raised its stake in shares of Datadog by 4.9% in the 4th quarter. Vise Technologies Inc. now owns 3,238 shares of the company’s stock valued at $440,000 after purchasing an additional 151 shares in the last quarter. Sunbelt Securities Inc. lifted its position in shares of Datadog by 18.3% during the third quarter. Sunbelt Securities Inc. now owns 2,835 shares of the company’s stock worth $404,000 after purchasing an additional 438 shares during the last quarter. Captrust Financial Advisors grew its stake in Datadog by 0.9% in the third quarter. Captrust Financial Advisors now owns 17,720 shares of the company’s stock worth $2,523,000 after purchasing an additional 157 shares in the last quarter. Finally, Coldstream Capital Management Inc. increased its holdings in Datadog by 7.6% in the third quarter. Coldstream Capital Management Inc. now owns 4,987 shares of the company’s stock valued at $710,000 after buying an additional 352 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.