Datadog (DDOG) Q3 2026 Earnings
Non-GAAP EPS excludes stock-based compensation of $237.2 million, employer payroll taxes on employee stock transactions of $18.9 million, amortization of acquired intangibles of $2.4 million, M&A transaction costs of $1.1 million and amortization of issuance costs of $1.05 million, with an assumed 21% tax rate; GAAP diluted EPS was $0.32.
How Did DDOG Stock React to Q3 2026 Earnings?
Did DDOG Beat Earnings? Q3 2026 Results
Yes. Datadog reported Q3 2026 earnings of $0.81 a share on Nov 4, 2026, beating the $0.64 consensus estimate by 26.4%. Revenue was $1.2B against a $1.1B estimate.
Datadog delivered a standout third quarter of 2026, posting adjusted non-GAAP EPS of $0.81 against a consensus estimate of $0.64, a beat of 26.42% that extended the company's streak of consensus EPS beats to six consecutive quarters. Revenue of $1.20 billion climbed 35.2% year over year, clearing the $1.15 billion consensus by 4.50%, as accelerating platform adoption across AI-driven workloads pushed results well above expectations. The clearest driver behind the outperformance was operating leverage: non-GAAP operating income rose to $334.29 million from $207.36 million a year earlier, lifting the non-GAAP operating margin to 28% from 23%, while gross margin held steady at 81% on a non-GAAP basis. The company's large-customer base also expanded meaningfully, with roughly 4,860 customers carrying ARR of $100,000 or more, up 20% from about 4,060 a year ago. Looking ahead, Datadog guided full-year 2026 revenue to $4.51 billion to $4.53 billion and full-year non-GAAP EPS to $2.73 to $2.75, signaling continued confidence in platform momentum as customers deepen AI and cloud investments.
- Revenue grew 35% year-over-year
- Strong platform adoption as customers scale digital operations and AI use
- Growth in larger customers: about 4,860 $100k+ ARR customers, up 20% from about 4,060
- Non-GAAP operating margin expanded to 28% from 23%
- GAAP operating income of $74.7 million versus a $5.8 million loss a year ago
“Datadog delivered a strong third quarter, with 35% year-over-year revenue growth, $290 million in operating cash flow, and $251 million in free cash flow.”
Datadog CEO, on the earnings call
What Is Datadog's Outlook?
For Q4 2026, Datadog expects revenue of $1.19 billion to $1.20 billion. It expects non-GAAP operating income of $280 million to $290 million and non-GAAP net income per share of $0.69 to $0.71, on about 379 million weighted average diluted shares. For full year 2026, it expects revenue of $4.515 billion to $4.525 billion. It expects non-GAAP operating income of $1.095 billion to $1.105 billion and non-GAAP net income per share of $2.73 to $2.75, on about 375 million weighted average diluted shares. Management cites continued platform adoption as customers scale digital operations and AI use, plus ongoing investment in specialized AI models to support autonomous operations.
DDOG YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $1.2B | $885.7M | +35.2% |
| Gross Profit | $959.9M | $709.2M | +35.4% |
| Operating Income | $74.7M | $5.0M | +1,386.0% |
| Net Income | $118.3M | $33.9M | +249.2% |
Figures from SEC filings and company reports. Not investment advice.