Datadog (NASDAQ:DDOG) Updates Q3 2026 Earnings Guidance

Datadog (NASDAQ:DDOG) updated its third quarter 2026 earnings guidance on Thursday. The company provided earnings per share guidance of 0.630-0.650 for the period, compared to the consensus 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 firms recently issued reports on DDOG. Citizens Jmp boosted their target price on shares of Datadog from $225.00 to $311.00 and gave the company a “market outperform” rating in a research note on Monday, July 20th. Guggenheim raised their price target on shares of Datadog from $225.00 to $300.00 and gave the company a “buy” rating in a research report on Wednesday, July 22nd. CICC Research lifted their price objective on shares of Datadog from $150.00 to $204.00 in a report on Monday, May 11th. Wolfe Research reiterated an “outperform” rating and issued a $295.00 price objective on shares of Datadog in a research report on Thursday, June 11th. Finally, BTIG Research upped their price objective on shares of Datadog from $255.00 to $289.00 and gave the stock a “buy” rating in a research report on Tuesday, July 28th. Two research analysts have rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, Datadog presently has an average rating of “Moderate Buy” and an average price target of $271.57.

Datadog Price Performance

Shares of Datadog stock opened at $283.17 on Thursday. The business has a 50 day simple moving average of $249.48 and a two-hundred day simple moving average of $176.68. Datadog has a 12 month low of $98.01 and a 12 month high of $292.72. The company has a debt-to-equity ratio of 0.25, a current ratio of 3.40 and a quick ratio of 3.40. The stock has a market capitalization of $100.80 billion, a P/E ratio of 745.20, a PEG ratio of 29.19 and a beta of 1.54.

Datadog (NASDAQ:DDOG) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.65 earnings per share for the quarter, beating analysts’ consensus estimates of $0.58 by $0.07. Datadog had a return on equity of 4.83% and a net margin of 3.69%.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, analysts predict that Datadog will post 0.64 EPS for the current fiscal year.

Insider Buying and Selling at Datadog

In other news, CFO David M. Obstler sold 75,000 shares of the company’s stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $231.69, for a total value of $17,376,750.00. Following the completion of the sale, the chief financial officer directly owned 434,591 shares in the company, valued at $100,690,388.79. This represents a 14.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael James Callahan sold 112,500 shares of the stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $231.60, for a total value of $26,055,000.00. Following the completion of the sale, the director directly owned 14,996 shares of the company’s stock, valued at approximately $3,473,073.60. This represents a 88.24% decrease in their position. 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 sold 1,437,118 shares of company stock worth $337,708,784. 6.48% of the stock is owned by company insiders.

Key Stories Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Analysts continue to raise their expectations. Cantor Fitzgerald lifted its price target to $327 and maintained an overweight rating, while Canaccord Genuity raised its target to $295 and Rosenblatt Securities increased its target to $305; all three firms retained buy-equivalent ratings. These revisions reflect confidence in Datadog’s AI products, platform expansion and demand for observability and security tools. Cantor Fitzgerald price target article
• Positive Sentiment: Datadog enters its earnings report with solid operating momentum. The company’s prior quarter delivered revenue of $1.01 billion, up 32.1% year over year, and adjusted earnings of $0.60 per share, exceeding consensus estimates. Investors are looking for continued customer additions, usage growth and traction from AI-related products in the upcoming results. Datadog Q2 earnings outlook
• Neutral Sentiment: Datadog will present at several investor conferences, including Canaccord Genuity’s Growth Conference on August 12, Citi’s Global TMT Conference on September 8 and Goldman Sachs’ Communacopia & Technology Conference. The events could provide updates on demand, AI adoption and guidance, but the announcement itself does not change financial forecasts. Datadog investor conferences announcement
• Negative Sentiment: Valuation and earnings risk remain significant. Datadog trades at a very high earnings multiple, so any shortfall in revenue growth, margins, customer metrics or forward guidance could trigger volatility. The company is expected to report quarterly earnings on Thursday, making the near-term reaction especially dependent on results relative to elevated expectations. Datadog Q2 earnings preview
• Negative Sentiment: Director Amit Agarwal sold 20,000 shares for approximately $5.3 million, reducing his direct ownership by more than 92%. The sale was conducted under a pre-arranged Rule 10b5-1 plan, limiting its bearish significance, but repeated insider selling may still weigh modestly on sentiment. SEC insider transaction filing

Institutional Trading of Datadog

A number of hedge funds and other institutional investors have recently modified their holdings of DDOG. Sivia Capital Partners LLC purchased a new position in Datadog during the second quarter worth about $509,000. Brighton Jones LLC purchased a new stake in shares of Datadog in the 4th quarter valued at approximately $209,000. Bison Wealth LLC purchased a new stake in shares of Datadog in the 4th quarter valued at approximately $228,000. Claro Advisors Inc. purchased a new stake in shares of Datadog in the 4th quarter valued at approximately $204,000. Finally, Fieldview Capital Management LLC acquired a new position in shares of Datadog in the 4th quarter worth approximately $205,000. 78.29% of the stock is owned by institutional investors and hedge funds.

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.