Datadog (NASDAQ:DDOG) Updates FY 2026 Earnings Guidance

Datadog (NASDAQ:DDOG) updated its FY 2026 earnings guidance on Tuesday. 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.

Datadog Trading Down 1.8%

DDOG stock opened at $127.33 on Thursday. The company has a market cap of $44.65 billion, a P/E ratio of 410.74, a PEG ratio of 23.16 and a beta of 1.27. The company has a quick ratio of 3.66, a current ratio of 3.38 and a debt-to-equity ratio of 0.26. Datadog has a twelve month low of $81.63 and a twelve month high of $201.69. The business has a fifty day moving average of $133.30 and a 200-day moving average of $143.94.

Datadog (NASDAQ:DDOG) last posted its quarterly earnings results on Tuesday, February 10th. The company reported $0.59 earnings per share for the quarter, beating analysts’ consensus estimates of $0.55 by $0.04. Datadog had a return on equity of 4.14% and a net margin of 3.14%.The company had revenue of $953.19 million for the quarter, compared to the consensus estimate of $916.53 million. During the same quarter in the prior year, the business posted $0.49 EPS. The firm’s quarterly revenue was up 29.2% on a year-over-year basis. 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 research analysts expect that Datadog will post 0.34 EPS for the current year.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. Oppenheimer lifted their price objective on shares of Datadog from $165.00 to $195.00 and gave the company an “outperform” rating in a report on Friday, October 17th. BTIG Research reduced their price objective on shares of Datadog from $221.00 to $170.00 and set a “buy” rating for the company in a research report on Tuesday. Citizens Jmp reiterated a “market perform” rating on shares of Datadog in a research note on Wednesday. Needham & Company LLC cut their price objective on shares of Datadog from $220.00 to $155.00 and set a “buy” rating for the company in a report on Tuesday. Finally, Canaccord Genuity Group restated a “buy” rating on shares of Datadog in a research report on Wednesday. Thirty-seven research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $179.50.

Insider Buying and Selling at Datadog

In other Datadog news, CEO Olivier Pomel sold 11,195 shares of the company’s stock in a transaction dated 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 sale, the chief executive officer directly owned 518,133 shares of the company’s stock, valued at $71,466,084.69. This represents a 2.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Shardul Shah sold 7,916 shares of the firm’s stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $124.89, for a total value of $988,629.24. Following the completion of the transaction, the director directly owned 340,701 shares of the company’s stock, valued at $42,550,147.89. The trade was a 2.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders 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: Datadog reported Q4 revenue up ~29% to $953M and $0.59 EPS, topping estimates; management issued Q1 and FY2026 guidance well above Street expectations, which spurred the post-earnings rally. Datadog beats quarterly estimates
• Positive Sentiment: AI positioning: Analysts and commentators argue AI fears are overstated for Datadog; the company is integrating AI monitoring and security features that should make it a beneficiary of AI adoption rather than a victim. Datadog: AI Isn’t The Main Problem
• Positive Sentiment: Strong market reaction and cash flow: Multiple outlets note the stock jumped double digits after the print as revenue, ARR and cash-flow metrics showed acceleration—supporting bullish momentum in the near term. Datadog Stock Surges After Earnings
• Neutral Sentiment: Mixed analyst moves: Some firms reaffirm buys and high targets (DA Davidson, Rosenblatt), while others trimmed targets; reactions are supportive but show a wide range of conviction that could create volatility. Analyst notes (Benzinga)
• Neutral Sentiment: Sector flow and short-squeeze chatter: Broader software/AI rotation and talk of short-covering have amplified price moves—this can produce sharp intraday swings unrelated to fundamentals. Software Stocks Look Primed for a Short Squeeze
• Negative Sentiment: Valuation remains a concern: Commentators and some analysts still view Datadog as expensive (very high P/E and premium multiples), which limits upside despite strong results and makes the stock sensitive to any slowdown or guidance miss. Is Datadog Stock Still A Buy?
• Negative Sentiment: Short-term profit-taking and AI-sector weakness: After the earnings pop, some investors are trimming positions into strength; ongoing AI-driven rotation in software names is pressuring the stock despite Datadog-specific positives. Datadog jumps after Q4 beat

Hedge Funds Weigh In On Datadog

Institutional investors have recently bought and sold shares of the stock. State Street Corp raised its stake in shares of Datadog by 106.8% in the third quarter. State Street Corp now owns 13,732,777 shares of the company’s stock worth $1,955,547,000 after buying an additional 7,091,075 shares during the period. Invesco Ltd. boosted its position in shares of Datadog by 119.2% during the 3rd quarter. Invesco Ltd. now owns 4,075,721 shares of the company’s stock valued at $580,383,000 after acquiring an additional 2,216,402 shares during the last quarter. Northern Trust Corp grew its stake in shares of Datadog by 45.0% in the 3rd quarter. Northern Trust Corp now owns 2,707,291 shares of the company’s stock worth $385,518,000 after buying an additional 840,633 shares in the last quarter. AQR Capital Management LLC increased its stake in Datadog by 99.8% during the second quarter. AQR Capital Management LLC now owns 1,847,722 shares of the company’s stock worth $247,983,000 after acquiring an additional 923,038 shares during the last quarter. Finally, Ameriprise Financial Inc. raised its holdings in Datadog by 57.7% during the 2nd quarter. Ameriprise Financial Inc. now owns 1,769,943 shares of the company’s stock valued at $237,758,000 after buying an additional 647,623 shares during the period. 78.29% of the stock is owned by institutional investors.

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.