Companies /Technology

Datadog Inc - Class A

NASDAQ: DDOG Software - Application
$212.93
▼ $1.83 (−0.85%) today
Markets closed · 4:30pm ET

Q2 2026 Earnings

Reported Aug 6, 2026, 7:07am ET · SEC source
$0.65
Beat +11.45%
EPS · est. $0.58 Adjusted
$1.1B
Beat +4.00%
Revenue · est. $1.1B
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+9%+18%+27%Aug 6Aug 7report 7:07am ETearnings+0.2%+6.9%
0+9%+18%+27%Aug 6Aug 7earnings+0.2%+6.9%
DDOG +6.9%S&P 500 +0.2%
0+9%+18%+27%Aug 6Aug 7report 7:07am ETearnings+1.1%+6.9%
0+9%+18%+27%Aug 6Aug 7earnings+1.1%+6.9%
DDOG +6.9%NASDAQ +1.1%
0+10%+20%+30%Aug 5Aug 14report 7:07am ETearnings+1.0%+13.0%
0+10%+20%+30%Aug 5Aug 14earnings+1.0%+13.0%
DDOG +13.0%S&P 500 +1.0%
0+10%+20%+30%Aug 5Aug 14report 7:07am ETearnings+2.8%+13.0%
0+10%+20%+30%Aug 5Aug 14earnings+2.8%+13.0%
DDOG +13.0%NASDAQ +2.8%
−19.03%
Day of report
+2.02%
Next session
+10.01%
One week

Did DDOG Beat Earnings? Q2 2026 Results

Datadog delivered a standout second quarter for fiscal 2026, beating Wall Street expectations on both the top and bottom lines and extending its consensus EPS beat streak to five consecutive quarters. The cloud monitoring company posted revenue of $1.12 billion, up 35.6% year over year and ahead of the $1.08 billion consensus by 4.00%, while adjusted non-GAAP EPS of $0.65 cleared the $0.58 estimate by 11.45%. The primary engine behind the outperformance was deepening platform adoption among enterprise customers, with the count of clients generating $100,000 or more in annual recurring revenue climbing 23% to roughly 4,720, a figure that underscores the competitive pressure rivals in the observability space are facing as AI workload monitoring demand intensifies. Non-GAAP operating income reached $257.03 million at a 23% margin, up from 20% a year ago, reflecting meaningful operating leverage. Looking ahead, Datadog raised its full-year 2026 revenue guidance to $4.45 billion to $4.47 billion and set non-GAAP EPS guidance of $2.50 to $2.54, signaling continued confidence in demand for its expanding AI-oriented platform capabilities.

Key Takeaways
  • 36% year-over-year revenue growth driven by customer adoption of AI-enabled solutions
  • 23% growth in $100K+ ARR customers to approximately 4,720
  • Non-GAAP operating margin expansion to 23% from 20% year-over-year
  • Free cash flow margin of 25% vs 20% in Q2 2025

“Datadog delivered a strong quarter, with 36% year-over-year revenue growth, $316 million in operating cash flow, and $279 million in free cash flow. Our customers are building and deploying with AI, and they are using the Datadog platform to observe, secure, and act on their AI-enabled solutions.”

Datadog CEO, on the earnings call

Forward Guidance & Outlook

For Q3 2026, Datadog expects revenue between $1.135 billion and $1.145 billion, non-GAAP operating income between $260 million and $270 million, and non-GAAP net income per share between $0.63 and $0.65 on approximately 378 million weighted average diluted shares. For full year 2026, the company expects revenue between $4.45 billion and $4.47 billion, non-GAAP operating income between $1.01 billion and $1.03 billion, and non-GAAP net income per share between $2.50 and $2.54 on approximately 376 million weighted average diluted shares.

DDOG YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$400.0M$800.0M$1.2B$826.8M$1.1BRevenue$660.6M$881.3MGross Profit$2.5M$5.5MOperating Income$2.6M$44.6MNet Income
$0$400.0M$800.0M$1.2BRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.