Companies /Technology

Datadog Inc - Class A

NASDAQ: DDOG Software - Application
$212.93
▼ $1.83 (−0.85%) today
Markets closed · 6:17pm ET

Q4 2025 Earnings

Reported Feb 10, 2026, 7:11am ET · SEC source
$0.59
Beat +6.33%
EPS · est. $0.55
$953.2M
Beat +3.81%
Revenue · est. $918.2M
+0.3%
Beating market
DDOG vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−10%−5%0+5%Feb 10Feb 11report 7:11am ETearnings−0.5%−1.4%
−10%−5%0+5%Feb 10Feb 11earnings−0.5%−1.4%
DDOG −1.4%S&P 500 −0.5%
−10%−5%0+5%Feb 10Feb 11report 7:11am ETearnings−0.6%−1.4%
−10%−5%0+5%Feb 10Feb 11earnings−0.6%−1.4%
DDOG −1.4%NASDAQ −0.6%
−10%−5%0+5%Feb 9Feb 18report 7:11am ETearnings−1.4%−5.4%
−10%−5%0+5%Feb 9Feb 18earnings−1.4%−5.4%
DDOG −5.4%S&P 500 −1.4%
−10%−5%0+5%Feb 9Feb 18report 7:11am ETearnings−1.9%−5.4%
−10%−5%0+5%Feb 9Feb 18earnings−1.9%−5.4%
DDOG −5.4%NASDAQ −1.9%
+13.74%
Day of report
−1.80%
Next session
−6.08%
One week
−3.97%
30 days

S&P 500 over the same 30 days: −4.31%.

Did DDOG Beat Earnings? Q4 2025 Results

Datadog closed out fiscal 2025 with a strong fourth quarter, beating Wall Street expectations on both the top and bottom lines as robust enterprise demand drove accelerating growth. The cloud monitoring and analytics company reported Q4 revenue of $953.19 million, up 29.2% year over year and ahead of the $918.67 million consensus estimate, while non-GAAP diluted EPS of $0.59 cleared the $0.55 analyst forecast by 7.27%. The most compelling driver behind the result was continued enterprise expansion, with customers generating $1 million or more in annual recurring revenue climbing 31% to 603, signaling deepening adoption of Datadog's observability platform. Non-GAAP operating income reached $230.07 million, representing a 24% margin, and full-year free cash flow of $914.72 million underscored the company's durable cash generation. Looking ahead, management guided fiscal 2026 revenue of $4.06 billion to $4.10 billion, implying roughly 18% to 20% growth, with non-GAAP EPS of $2.08 to $2.16, reflecting confidence in sustained demand even as broader software sector sentiment remains uneven.

Key Takeaways
  • 29% year-over-year Q4 revenue growth
  • 31% growth in $1M+ ARR customers to 603
  • 19% growth in $100K+ ARR customers to approximately 4,310
  • Strong free cash flow generation of $291 million in Q4 and $915 million for FY 2025
  • Non-GAAP operating margin of 24% in Q4

“We are pleased with our strong execution in fiscal year 2025, with 28% year-over-year revenue growth, $1,050 million in operating cash flow, and $915 million in free cash flow. During 2025, we delivered over 400 new features and capabilities to help our customers as they migrate to the cloud and begin to deploy to production with next-gen AI.”

Datadog CEO, on the earnings call

Forward Guidance & Outlook

For Q1 2026, Datadog expects revenue of $951 million to $961 million, non-GAAP operating income of $195 million to $205 million, and non-GAAP net income per share of $0.49 to $0.51 on approximately 367 million weighted average diluted shares. For full fiscal year 2026, the company guides revenue of $4.06 billion to $4.10 billion, non-GAAP operating income of $840 million to $880 million, and non-GAAP net income per share of $2.08 to $2.16 on approximately 372 million weighted average diluted shares.

DDOG YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$300.0M$600.0M$900.0M$737.7M$953.2MRevenue$593.3M$766.3MGross Profit$9.4M$9.4MOperating Income$45.6M$46.6MNet Income
$0$300.0M$600.0M$900.0MRevenueGross ProfitOperating IncomeNet Income

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