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Datadog
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NASDAQ: DDOG Technology IT 🔎 Screen
S&P 500 Nasdaq 100
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$81.8B
Market Cap
438.7
P/E
5.28
PEG
-8.3%
ROCE
3.3%
ROE
0.33
D/E
-1.3%
OPM
-21.0%
% from 52W High
87
α RS
🔍 DDOG is showing a momentum setup because RS Rating is 87 and it matches 2 of 37 tracked screener presets. Net: Partial signal stack, not a recommendation. ? RS Rating Conviction
Sources
RS Rating 87 · Conviction 2/37
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🌏 Global Investor Returns
Currency-adjusted total returns for DDOG including FX impact
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📈 Price History
Ratio Health
— Excellent
— Good
— Average
— Poor
By Category
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About

Datadog, Inc. operates an observability and security platform for cloud applications in the United States and internationally.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding DDOG
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 474.4K $56.0M 0.07% Mar 2026
Jim Simons Renaissance Technologies LLC 291.9K $34.5M 0.05% Mar 2026
Cathie Wood ARK Investment Management 226.6K $26.8M 0.21% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$1.12B
+36% YoY
Non-GAAP Operating Income
$257M
23% margin vs 20% prior year
Non-GAAP Operating Margin
23%
+3pp YoY
Non-GAAP EPS
$0.65
GAAP EPS was $0.12
Free Cash Flow
$279M
25% FCF margin
What Went Right
  • Revenue beat the high end of guidance at $1.12B, up 36% YoY, with a record $115M sequential add and 11% QoQ growth — highest since Q2 2022.
  • Non-AI customer revenue growth accelerated to high-20s YoY from mid-20s last quarter and 18% a year ago, with broad-based strength across customer size and industry.
  • AI momentum remained strong: 750+ AI customers, 10 of top 10 AI leaders, 31 AI customers >$1M ARR, and MCP tool calls grew 22x vs Q4 2025.
What to Watch
  • The largest customer renewed but reduced usage starting Q3; management fully de-risked guidance for this customer, weighing on reported growth.
  • Q3 revenue guidance of $1.135–$1.145B implies 28–29% YoY growth, a clear deceleration from Q2's 36%.
  • Gross margin dipped to 79.6% from 80.9% a year ago, with management flagging investment offsets though reiterating an 80%± long-term expectation.
Management Guidance
  • Q3 revenue of $1.135B–$1.145B, representing 28–29% YoY growth.
  • Q3 non-GAAP operating income of $260M–$270M, implying 23–24% operating margin; non-GAAP EPS of $0.63–$0.65.
  • FY2026 revenue of $4.45B–$4.47B (~30% YoY), non-GAAP operating income of $1.01B–$1.03B (23% margin), non-GAAP EPS of $2.50–$2.54.
Investor Lens
The core thesis is stronger after this call: Datadog is seeing broad-based acceleration, with non-AI growth re-accelerating to the high-20s and AI-native demand diversifying beyond the largest customer. Management deliberately de-risked the outlook for a usage reduction at one large AI customer, so reported growth is set to slow in Q3, but the rest of the business continues to accelerate. The mix of large new AI logos, record new-logo enterprise bookings, and deeper platform adoption supports a durable growth story. The main watch item remains customer concentration and the pace of the largest customer's re-ramp.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Q2 beat: revenue +36% to $1.12B, non-AI accelerates to high-20s.
Revenue
Revenue was $1.12B, up 36% YoY and above the high end of guidance, with an 11% QoQ increase and a record $115M sequential add. Non-AI customer revenue grew high-20s YoY, accelerating from mid-20s last quarter and 18% a year ago, while AI customers continued to scale with 750+ AI customers and 31 spending over $1M annually.
Profitability
Non-GAAP operating income was $257M, representing a 23% operating margin, up from 20% a year ago. Non-GAAP EPS was $0.65, GAAP EPS was $0.12, and free cash flow was $279M with a 25% margin.
Margins
Gross margin was 79.6%, down from 80.2% last quarter and 80.9% a year ago, as investments into innovation offset efficiency gains. Non-GAAP operating margin improved to 23% from 22% last quarter and 20% in the year-ago quarter.
Balance Sheet
Cash, cash equivalents, and marketable securities were $5.0B at quarter end. Operating cash flow was $316M, and free cash flow was $279M; the company expects CapEx and capitalized software combined to be 4–5% of revenue in 2026.
Key Risks
Management flagged a usage reduction at the largest customer, fully included in guidance, which will pressure reported growth into Q3. Q3 revenue guidance of 28–29% YoY is a notable deceleration from Q2's 36%. Gross margin also declined sequentially, and the company acknowledged variability in low-end customer counts.
Outlook
Q3 revenue is guided to $1.135B–$1.145B, with non-GAAP operating income of $260M–$270M and non-GAAP EPS of $0.63–$0.65. FY2026 revenue is guided to $4.45B–$4.47B, with non-GAAP operating income of $1.01B–$1.03B and non-GAAP EPS of $2.50–$2.54.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-06
Q2 2026 saw 36% revenue growth to $1.12B, with strong AI and non-AI customer acceleration and deepening product adoption. Guidance for 2026 reflects 30% revenue growth, with robust margins and continued investment in AI innovation and platform expansion.
Q1 2026 Q1 2026 2026-05-07
Q1 2026 saw 32% year-over-year revenue growth, surpassing $1 billion in quarterly revenue for the first time, with strong performance across both AI and non-AI customer segments. Guidance for FY 2026 was raised, reflecting continued momentum and robust platform adoption.
Q4 2025 Q4 2025 2026-02-10
Q4 2025 delivered robust revenue and bookings growth, with strong expansion in both AI-native and traditional customer segments. The company launched significant AI-driven innovations, deepened multi-product adoption, and provided a positive outlook for 2026, projecting 18–20% revenue growth.
Q3 2025 Q3 2025 2025-11-06
Q3 revenue grew 28% year-over-year to $886M, driven by strong demand, new customer growth, and accelerating AI-native and security segments. FY25 guidance was raised, with continued margin strength and robust free cash flow. AI and digital transformation remain key growth drivers.
Q2 2025 Q2 2025 2025-08-07
Q2 2025 saw 28% revenue growth to $827M, driven by strong AI-native customer expansion and deepening platform adoption. Guidance for FY 2025 was raised, with continued investment in R&D and sales capacity, while maintaining robust margins and cash flow.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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