Datadog beats Q3 revenue, profit estimates 

Overview

• Observability platform's Q3 revenue grew 35% yr/yr, beating analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Adjusted operating income for Q3 beat analyst expectations

Outlook

• Datadog sees Q4 revenue between $1.19 bln and $1.20 bln

• Company projects 2026 revenue between $4.515 bln and $4.525 bln

• Company sees 2026 non-GAAP net income per share of $2.73 to $2.75

Result Drivers

• LARGER CUSTOMERS - Co said robust growth in customers with $100k+ ARR helped drive Q3 results

• AI ADOPTION - Co said strong adoption across its platform as customers scale digital operations and use of AI contributed to Q3 performance, per CEO Olivier Pomel

• PRODUCT INNOVATION - Co said launch of Scout 1.0, its first specialized AI model, enabled more frequent and earlier investigations, reducing on-call burden and accelerating incident response

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 46 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Datadog Inc is $300.00, about 36% above its November 3 closing price of $220.52

• The stock recently traded at 75 times the next 12-month earnings vs. a P/E of 99 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)