Datadog, Inc. · DDOG · FY2025 Q1 · Calendar Q2 2025

Datadog: Raised Outlook, Broader Platform, Higher Cloud Costs

The supplied analysis provides constructive evidence for a one-year growth case: raised guidance, strong enterprise bookings, deeper platform adoption, and expanding AI-related observability. That case remains conditional on sustaining usage growth, integrating acquisitions effectively, and containing cloud-cost pressure.

Reported Before market openNASDAQTechnology $104.39B market cap
80quality score

Earnings scorecard

Reported versus consensus
Reported EPS — Consensus $0.42
EPS surprise — Reported versus consensus
Reported revenue — Consensus $741.2M
Revenue surprise — Reported versus consensus

Market reaction

prior-close to event-session close
Stock move +0.3% Event window
SPY move -0.8% Same window
Abnormal move +1.2% Stock minus SPY
Volume 2.5× Versus trailing sessions
Subsequent drift +12.9% Up to 20 sessions
DDOGSPY benchmark

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Transcript intelligence

What changed

Compared with the prior-quarter analysis, management reported a raised guidance stance, AI-native customers at 8.5% of ARR, acquisitions of Eppo and Metaplane, an Australian data center launch, and more explicit attention to higher cloud costs.

Guidance delta

Management raised its FY2025 revenue outlook, while noting modest gross-margin pressure from higher cloud costs.

Key takeaways

  • Management described strong top-line momentum and deeper cross-sell across the platform.
  • AI-native customers reached 8.5% of ARR, while Flex Logs and Database Monitoring adoption continued to expand.
  • Large enterprise bookings accelerated, and Eppo and Metaplane broadened Datadog’s product footprint.
  • The main counterweight is margin pressure from cloud infrastructure costs and uncertainty around AI-native growth durability.

Management priorities

  • Expand AI-related observability and LLM monitoring.
  • Deepen multi-product adoption, including Flex Logs, Database Monitoring, Cloud Security, and data observability.
  • Integrate Eppo and Metaplane and support international expansion, including Australia.
  • Scale sales capacity for larger enterprise opportunities.

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Earnings History

Estimate Beat Miss Match
DDOG EPS earnings history estimate and actual scatter chart 9 reported fiscal quarters and 3 future estimate-only quarters. Q4 '23 estimate $0.43 Q4 '23 actual $0.44, match Q1 '24 estimate $0.35 Q1 '24 actual $0.44, beat Q2 '24 estimate $0.37 Q2 '24 actual $0.43, beat Q3 '24 estimate $0.40 Q3 '24 actual $0.46, beat Q2 '25 estimate $0.41 Q2 '25 actual $0.46, beat Q3 '25 estimate $0.46 Q3 '25 actual $0.55, beat Q4 '25 estimate $0.56 Q4 '25 actual $0.59, beat Q1 '26 estimate $0.51 Q1 '26 actual $0.60, beat Q2 '26 estimate $0.58 Q2 '26 actual $0.65, beat Q3 '26 estimate $0.64 Q4 '26 estimate $0.63 Q1 '27 estimate $0.65
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Analyst Consensus ?

ConsensusBuy47 ratings
Bullish4085.1%
Neutral612.8%
Bearish12.1%

Analyst 52W Price Targets

$287.63Current
$75.76Low
$228.56Average
$325High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 12, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
CIBC Outperform OutperformMaintainOct 9, 2026
UBS Buy BuyMaintainAug 7, 2026
Scotiabank Sector Outperform Sector OutperformMaintainAug 7, 2026
Rosenblatt Buy BuyMaintainAug 7, 2026
Needham Buy BuyMaintainAug 7, 2026
Show 42 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $287.63. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
JefferiesAnalyst unavailable$300$293.26 +4.3%Oct 11, 2026
CIBCAnalyst unavailable$315$286.13 +9.5%Oct 9, 2026
FBN SecuritiesShebly Seyrafi$325$276.46 +13.0%Oct 2, 2026
Robert W. BairdAnalyst unavailable$300$236.85 +4.3%Aug 7, 2026
UBSKarl Keirstead$280$237.19 -2.7%Aug 7, 2026
See 163 more

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Company context

Snapshot as of publication

Datadog, Inc. offers a comprehensive cloud-based monitoring and analytics solution, serving the needs of developers, IT operations personnel, and business stakeholders across North America and internationally. This Software-as-a-Service (SaaS) offering skillfully combines and automates several crucial functions, including infrastructure oversight, application performance tracking, log management, and security surveillance, all designed to deliver live, end-to-end visibility into its customers' technology environments. Additionally, the platform extends its capabilities to include user experience monitoring, network performance analytics, robust cloud security measures, specialized observability tools for developers, and efficient incident response management. It also comes equipped with standard features like configurable dashboards, sophisticated analytical tools, collaborative features, and proactive alert systems. The company was founded in 2010 and is based in New York, New York.

Historical context

All DDOG earnings

Technology peers this season

Latest reports in the same sector

Latest beats and misses

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2025-04-22T00:02:47.536505+00:00
  3. Polygon adjusted daily market bars · 2026-10-12T17:40:41.073479+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-12T17:40:41.070235+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-12. For educational purposes only; not investment advice.