Datadog Q3 revenue, EPS beat expectations on robust growth in larger customers

Datadog

06/11/2025 12:24

Overview

Datadog Q3 revenue grows 28% yr/yr to $886 mln, beating analyst expectations

Adjusted EPS for Q3 beats consensus, reflecting strong operational performance

Company reports 16% increase in $100k+ ARR customers, reaching 4,060

Outlook

Datadog projects Q4 2025 revenue between $912 mln and $916 mln

Company expects Q4 2025 non-GAAP net income per share between $0.54 and $0.56

Datadog forecasts full-year 2025 revenue between $3.386 bln and $3.390 bln

Result Drivers

LARGER CUSTOMERS - Datadog saw robust growth in larger customers, with $100k+ ARR customers increasing 16% to 4,060

AI AND SECURITY INNOVATION - Datadog's R&D team rapidly innovated in AI and security, launching new products like AI Observability and Security products, Bits AI Agents, and TOTO model

INTEGRATIONS MILESTONE - Datadog reached over 1,000 integrations on its platform, enhancing its leadership in observability

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$885.65 mln
$852.78 mln (37 Analysts)
Q3 Adjusted EPS
Beat
$0.55
$0.47 (38 Analysts)
Q3 EPS
$0.10
Q3 Net Income
$33.89 mln
Q3 Adjusted Operating Income
Beat
$207 mln
$179.35 mln (35 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 38 "strong buy" or "buy", 7 "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 is $170.00, about 8.8% above its November 5 closing price of $154.98

The stock recently traded at 72 times the next 12-month earnings vs. a P/E of 71 three months ago

Press Release: ID:nGNX10NVsk

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(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.)