Datadog Q1 revenue beats on large customer growth, AI-driven product launches

Datadog

07/05/2026 12:15

Overview

US observability platform's Q1 revenue grew 32%, beating analyst expectations

Adjusted EPS for Q1 beat analyst expectations

Company saw robust growth in large customers and launched new AI-driven products

Outlook

Datadog sees Q2 revenue between $1.07 bln and $1.08 bln

Company expects Q2 non-GAAP net income per share of $0.57-$0.59

Datadog forecasts full-year revenue between $4.30 bln and $4.34 bln

Result Drivers

LARGE CUSTOMER GROWTH - Company reported 21% increase in customers with $100k+ ARR, reaching about 4,550 as of March 31, 2026

AI-DRIVEN PRODUCT LAUNCHES - Datadog launched several new AI-powered features, including MCP Server, Bits AI Security Agent, GPU Monitoring, and Experiments

Company press release: ID:nGNX8frmDq

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$1.006 bln
$961.31 mln (42 Analysts)
Q1 Adjusted EPS
Beat
$0.60
$0.51 (41 Analysts)
Q1 EPS
$0.15
Q1 Net Income
$52.57 mln
Q1 Adjusted Operating Income
Beat
$223 mln
$203.79 mln (39 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 46 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Datadog Inc (Pre-Reincorporation) is $175.00, about 21.8% above its May 6 closing price of $143.71

The stock recently traded at 62 times the next 12-month earnings vs. a P/E of 55 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)