Datadog stock posts 35% growth as Scout AI expands platform

Datadog reported strong third-quarter growth on Wednesday, November 4, 2026, while setting a more measured near-term outlook. In its financial release, the observability and security company said revenue for the quarter ended September 30 rose 35 percent from a year earlier to 1.197 billion US dollars.

Datadog stock traded at 159.00 euros on Lang & Schwarz at 13:49 CET on Tuesday, November 10, 2026.

Strong demand across larger accounts

The company ended the quarter with about 4,860 customers generating at least 100,000 US dollars in annual recurring revenue, up from about 4,060 a year earlier. That customer expansion supports Datadog's effort to broaden its platform beyond individual monitoring products and deepen relationships with larger enterprises.

Profitability also improved on a reported basis. GAAP operating income reached 74.7 million US dollars, compared with an operating loss of 5.8 million US dollars in the year-earlier quarter. GAAP diluted earnings per share were 0.32 US dollars. On a non-GAAP basis, operating income was 334.3 million US dollars, while diluted earnings per share were 0.81 US dollars.

The adjusted figures exclude items including stock-based compensation, amortization of acquired intangibles, employer payroll taxes on equity awards, acquisition costs and issuance-cost amortization. Stock-based compensation alone totaled 237.2 million US dollars in the quarter, making the distinction between reported and adjusted profitability relevant for investors.

Scout adds an AI product layer

Datadog also introduced Scout 1.0, its first specialized model from the company's AI Research team. The model is in preview and powers Bits Investigation, which is designed to investigate production issues. Datadog said Scout delivers frontier-model performance at a fraction of the inference cost, allowing more frequent investigations and earlier incident response.

Chief Executive Olivier Pomel said the company is developing specialized AI models to help customers manage rising complexity and move toward more autonomous operations. The product launch gives Datadog an additional way to connect its observability platform with customers' expanding use of artificial intelligence, although commercial adoption remains an important variable for the investment case.

Guidance signals slower fourth-quarter growth

For the fourth quarter, Datadog expects revenue between 1.19 billion and 1.20 billion US dollars, with non-GAAP operating income of 280 million to 290 million US dollars and non-GAAP diluted earnings per share of 0.69 to 0.71 US dollars. The revenue range implies year-over-year growth of 25 percent to 26 percent, below the third-quarter pace.

For the full year, management projects revenue of 4.515 billion to 4.525 billion US dollars. The company expects non-GAAP operating income of 1.095 billion to 1.105 billion US dollars and non-GAAP diluted earnings per share of 2.73 to 2.75 US dollars. Investors will therefore weigh continued demand from large customers and AI workloads against the expected moderation in growth.

Datadog company facts

• Company: Datadog, Inc.
• ISIN: US23804L1035
• Ticker: DDOG
• Home exchange: Nasdaq
• Lang & Schwarz quote: 159.00 euros at 13:49 CET on Tuesday, November 10, 2026
• Third-quarter revenue: 1.197 billion US dollars for the period ended September 30, 2026

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