Datadog Q2 2026: EPS beats by 11%, guidance raised to $4.47B
As seen on the 24/7 Wall St. homepage on August 6, 2026.
AI observability spending is showing up in the numbers: customers paying $100,000 or more annually rose 23% to about 4,720. Management lifted full-year revenue guidance to $4.45 billion to $4.47 billion.
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Datadog reported Q2 2026 earnings per share of $0.65, clearing the consensus estimate of $0.58 by about 11%. Revenue came in at roughly $1.12 billion, topping expectations by 4%. The results extend a consistent pattern of beats — the company has exceeded EPS estimates in each of the last eight quarters reported.
The clearest sign that AI observability spending is translating into real business came from the high-value customer count: clients spending $100,000 or more annually grew 23% to approximately 4,720. That cohort typically drives a disproportionate share of revenue and signals deepening platform adoption rather than one-off deals.
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On the back of the stronger-than-expected quarter, management raised its full-year revenue outlook to a range of $4.45 billion to $4.47 billion. Investors will want to watch whether that large-customer count continues to expand at a similar pace in the second half, as it has been the most direct indicator of how AI infrastructure buildouts are flowing through to Datadog's top line.
Mentioned: DDOG