Companies /Technology

Datadog Inc - Class A

NASDAQ: DDOG Software - Application
$212.93
▼ $1.83 (−0.85%) today
Markets closed · 9:20pm ET

Q1 2026 Earnings

Reported May 7, 2026, 7:05am ET · SEC source
$0.60
Beat +18.25%
EPS · est. $0.51
$1.0B
Beat +4.84%
Revenue · est. $959.9M
+19.7%
Beating market
DDOG vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−16%−8%0+8%May 7May 8report 7:05am ETearnings+0.3%+6.6%
−16%−8%0+8%May 7May 8earnings+0.3%+6.6%
DDOG +6.6%S&P 500 +0.3%
−16%−8%0+8%May 7May 8report 7:05am ETearnings+1.9%+6.6%
−16%−8%0+8%May 7May 8earnings+1.9%+6.6%
DDOG +6.6%NASDAQ +1.9%
−20%0May 6May 15report 7:05am ETearnings+0.7%+12.7%
−20%0May 6May 15earnings+0.7%+12.7%
DDOG +12.7%S&P 500 +0.7%
−20%0May 6May 15report 7:05am ETearnings+1.7%+12.7%
−20%0May 6May 15earnings+1.7%+12.7%
DDOG +12.7%NASDAQ +1.7%
+31.33%
Day of report
+6.06%
Next session
+7.48%
One week
+20.46%
30 days

S&P 500 over the same 30 days: +0.75%.

Did DDOG Beat Earnings? Q1 2026 Results

Datadog delivered a standout first quarter for fiscal 2026, extending its beat streak to four consecutive quarters as non-GAAP diluted EPS of $0.60 cleared the $0.51 consensus estimate by 17.65%, while revenue of $1.01 billion grew 32.1% year over year. The results silenced <a href="https://247wallst.com/investing/2026/04/14/datadogs-price-target-trimmed-by-mizuho-can-this-ai-monitoring-leader-deliver-in-q1/">concerns heading into the print</a> about whether the cloud monitoring leader could sustain momentum, with customer expansion serving as a primary engine: approximately 4,550 customers now generate $100K or more in annual recurring revenue, up 21% from roughly 3,770 a year ago. The company also swung to GAAP operating profitability with $7.33 million in operating income, compared to a loss of $12.42 million in the prior-year period, while free cash flow reached $289.09 million. Looking ahead, Datadog guided Q2 revenue of $1.07 billion to $1.08 billion and raised its full-year 2026 revenue outlook to $4.30 billion to $4.34 billion, with non-GAAP EPS expected between $2.36 and $2.44.

Key Takeaways
  • 32% year-over-year revenue growth driven by robust customer expansion
  • 21% growth in $100K+ ARR customers to approximately 4,550
  • Strong operating cash flow of $335 million and free cash flow of $289 million
  • Helping customers deploy modern, cloud-based, AI-enabled solutions

“Datadog executed to a strong quarter, with 32% year-over-year revenue growth, $335 million in operating cash flow, and $289 million in free cash flow. We are helping customers of all sizes and industries deploy modern, cloud-based, AI-enabled solutions.”

Datadog CEO, on the earnings call

Forward Guidance & Outlook

For Q2 2026, Datadog guides revenue of $1.07 billion to $1.08 billion, non-GAAP operating income of $225 million to $235 million, and non-GAAP EPS of $0.57 to $0.59 on approximately 369 million diluted shares. For full-year 2026, the company expects revenue of $4.30 billion to $4.34 billion, non-GAAP operating income of $940 million to $980 million, and non-GAAP EPS of $2.36 to $2.44 on approximately 372 million diluted shares.

DDOG YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$300.0M$600.0M$900.0M$761.6M$1.0BRevenue$603.7M$797.2MGross Profit$2.8M$7.3MOperating Income$24.6M$52.6MNet Income
$0$300.0M$600.0M$900.0MRevenueGross ProfitOperating IncomeNet Income

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