Datadog Q4 revenue beats expectations on customer base expansion

Datadog

10/02/2026 12:11

Overview

AI-powered observability platform's Q4 revenue grew 29%, beating analyst expectations

Adjusted EPS for Q4 beat analyst expectations

Company launched new AI and observability products, expanded AWS collaboration

Outlook

Company expects Q1 2026 revenue between $951 mln and $961 mln

Datadog forecasts FY 2026 revenue between $4.06 bln and $4.10 bln

Company anticipates FY 2026 non-GAAP operating income between $840 mln and $880 mln

Result Drivers

LARGER CUSTOMERS - Datadog reported a 31% increase in customers with ARR of $1 million or more, contributing to revenue growth

NEW PRODUCT LAUNCHES - Launched Bits AI SRE Agent, Storage Management, Feature Flags, and Data Observability, enhancing product offerings

AWS COLLABORATION - Expanded collaboration with AWS, introducing new capabilities in AI, observability, and security

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$953.19 mln
$916.58 mln (38 Analysts)
Q4 Adjusted EPS
Beat
$0.59
$0.55 (38 Analysts)
Q4 EPS
$0.13
Q4 Net Income
$46.57 mln
Q4 Adjusted Operating Income
Beat
$230 mln
$219.10 mln (37 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 42 "strong buy" or "buy", 4 "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 $190.00, about 66.7% above its February 9 closing price of $114.01

The stock recently traded at 48 times the next 12-month earnings vs. a P/E of 76 three months ago

Press Release: ID:nGNX3WSbGR

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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.)