Datadog, Inc. · DDOG · FY2025 Q3 · Calendar Q4 2025

Datadog Q3 Growth Broadens as AI and Non-AI Usage Accelerate

The supplied Q3 analysis provides evidence in favor of the growth hypothesis for DDOG: revenue growth remained strong, usage accelerated across both AI and non-AI customers, and enterprise expansion broadened. The evidence is not conclusive for the next year because GPU monitoring and other AI offerings still require monetization proof, while competition and usage durability remain key tests.

Reported Before market openNASDAQTechnology $98.68B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $0.55 Consensus $0.46
EPS surprise +20.2% Reported versus consensus
Reported revenue $885.7M Consensus $852.8M
Revenue surprise +3.9% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move +23.1% Event window
SPY move -1.1% Same window
Abnormal move +24.2% Stock minus SPY
Volume 6.4× Versus trailing sessions
Subsequent drift -20.7% Up to 20 sessions
DDOGSPY benchmark

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Transcript intelligence

What changed

Compared with the prior quarter, the analysis describes stronger non-AI usage growth, continued acceleration in the AI cohort, broader large-enterprise wins, and further traction for Bits AI, LLM observability, security, and digital experience products. FY2025 guidance remained maintained.

Guidance delta

Management maintained FY2025 guidance, with revenue expected at $3.386-$3.390 billion, or about 26% growth.

Key takeaways

  • Revenue reached $886 million, up 28% year over year and above the high end of guidance.
  • Non-AI customer usage growth reached its strongest level in 12 quarters while the AI cohort also accelerated.
  • Large enterprise land deals in Europe and the US broadened the customer base.
  • Bits AI, LLM observability, security products, and digital experience monitoring showed early or continuing traction.
  • The FY2025 outlook was unchanged despite continued investment in newer AI capabilities.

Management priorities

  • Expand Bits AI agents, AI observability, and MCP server capabilities.
  • Scale Cloud SIEM, Flex Logs, and the broader security portfolio.
  • Broaden integrations and partnerships with AI model providers.
  • Continue expanding sales capacity and go-to-market activity for enterprise demand.
  • Use industry events and the integration ecosystem to support pipeline development.

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Earnings History

Estimate Beat Miss Match
DDOG REVENUE earnings history estimate and actual scatter chart 9 reported fiscal quarters and 3 future estimate-only quarters. Q1 '24 estimate $592M Q1 '24 actual $611M, beat Q2 '24 estimate $627M Q2 '24 actual $645M, beat Q3 '24 estimate $665M Q3 '24 actual $690M, beat Q2 '25 estimate $791M Q2 '25 actual $827M, beat Q3 '25 estimate $853M Q3 '25 actual $886M, beat Q4 '25 estimate $919M Q4 '25 actual $953M, beat Q1 '26 estimate $960M Q1 '26 actual $1B, beat Q2 '26 estimate $1B Q2 '26 actual $1B, beat Q3 '26 estimate $1B Q4 '26 estimate $1B Q1 '27 estimate $1B
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Analyst Consensus ?

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

Analyst 52W Price Targets

$277.22Previous close
$75.76Low
$225.51Average
$325High

Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Oct 5, 2026. Not an FN2 forecast.

Firm-level rating actions

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

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

Named analyst price targets

Upside is calculated against the persisted previous close $277.22. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
FBN SecuritiesShebly Seyrafi$325$276.46 +17.2%Oct 2, 2026
Robert W. BairdAnalyst unavailable$300$236.85 +8.2%Aug 7, 2026
UBSKarl Keirstead$280$237.19 +1.0%Aug 7, 2026
BMO CapitalAnalyst unavailable$300$237.7 +8.2%Aug 7, 2026
ScotiabankPatrick Colville$285$229.29 +2.8%Aug 7, 2026
See 161 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 · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-10-05T08:20:43.698903+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-05T08:20:43.695680+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 2026-10-05. For educational purposes only; not investment advice.