Datadog, Inc. · DDOG · FY2025 Q4 · Calendar Q1 2026

Datadog posts strong Q4 growth as AI adoption broadens

The current analysis provides evidence for the growth case: revenue surpassed guidance, AI-native adoption is expanding, cross-product usage is deepening, and management maintained FY26 guidance. The case remains conditional because competition, AI execution, customer concentration, margin pressure, and cloud-spending sensitivity could limit durability.

Reported Before market openNASDAQTechnology $97.48B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $0.59 Consensus $0.56
EPS surprise +6.3% Reported versus consensus
Reported revenue $953.2M Consensus $918.7M
Revenue surprise +3.8% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move +13.7% Event window
SPY move -0.3% Same window
Abnormal move +14.0% Stock minus SPY
Volume 2.8× Versus trailing sessions
Subsequent drift -1.7% Up to 20 sessions
DDOGSPY benchmark

Ask FN2 about DDOG FY2025 Q4

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Why did DDOG rise 13.7% after beating EPS estimates in FY2025 Q4?What changed in DDOG's guidance and outlook in FY2025 Q4?Give me the bull and bear case for DDOG after FY2025 Q4 earnings.

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Transcript intelligence

What changed

Relative to the prior analysis, the emphasis shifted from early traction in Bits AI and security toward a larger AI-native customer base, deeper cross-product adoption, a broader agent and GPU-monitoring roadmap, and explicit FY26 guidance. Management tone remained confident and guidance sentiment remained maintained.

Guidance delta

Maintained: FY26 revenue guidance of $4.06–$4.10 billion, approximately 21% operating margin, and net income of $2.08–$2.16 per share.

Key takeaways

  • Revenue grew 29% year over year to $953 million and surpassed guidance.
  • AI-native demand is expanding, with 650 AI customers and 14 of the top 20 AI firms using Datadog.
  • Platform adoption deepened: 84% of customers use at least two products, while 9% use ten or more.
  • Management outlined a broad AI, GPU monitoring, and security roadmap while maintaining FY26 guidance.

Management priorities

  • Launch the AI Agents console and expand GPU monitoring with design partners.
  • Advance AI SRE, DeepAI DevAgent, BigAI Security, and in-stream anomaly detection.
  • Roll out storage management, Kubernetes auto-scaling, and product analytics.
  • Expand code security, IaC security, and security graph capabilities.

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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

$273.85Current
$75.76Low
$224.07Average
$320High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 1, 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 current price $273.85. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Robert W. BairdAnalyst unavailable$300$236.85 +9.5%Aug 7, 2026
UBSKarl Keirstead$280$237.19 +2.2%Aug 7, 2026
BMO CapitalAnalyst unavailable$300$237.7 +9.5%Aug 7, 2026
ScotiabankPatrick Colville$285$229.29 +4.1%Aug 7, 2026
NeedhamJack Andrews$300$229.29 +9.5%Aug 7, 2026
See 160 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
-19.0%FY2026 Q2 · Calendar Q3 2026+31.3%FY2026 Q1 · Calendar Q2 2026

Technology peers this season

Latest reports in the same sector
CompanyQuarterEPS surpriseMarket moveHeadline
SNX TD Synnex Corp FY2026 Q3 · Calendar Q3 2026 +20.9% -9.9% TD SYNNEX: AI-led growth accelerates, but mix and cash flow matter
ADBE Adobe Inc. FY2026 Q3 · Calendar Q3 2026 +0.8% +1.4% Adobe raises FY26 outlook as AI strategy broadens
ORCL Oracle Corporation FY2027 Q1 · Calendar Q3 2026 +10.3% -1.7% Oracle raises FY27 outlook as AI demand accelerates cloud growth
SAIL SailPoint, Inc. FY2027 Q2 · Calendar Q3 2026 +13.8% -1.2% SailPoint pairs 25% ARR growth with accelerating AI-driven adoption
CIEN Ciena Corporation FY2026 Q3 · Calendar Q3 2026 +22.0% -10.4% Ciena raises outlook as AI networking demand lifts backlog
DOCU DocuSign, Inc. FY2027 Q2 · Calendar Q3 2026 +6.4% +3.7% DocuSign Q2 FY27: IAM momentum supports a raised outlook

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 · 2026-07-26T00:36:15.940040+00:00
  3. Polygon adjusted daily market bars · 2026-10-01T02:56:07.325171+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-01T02:56:07.322382+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 2026-10-01. For educational purposes only; not investment advice.