Datadog stock weighs 35% Q3 growth against 2026 outlook
Published on 11/06/2026 at 14:07 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSStrong Growth Meets Cautious Guidance
- Datadog reported third-quarter revenue growth of 35% and non-GAAP operating margin of 28%.
- The company raised its customer base with at least $100,000 in annual recurring revenue to about 4,860.
- Fourth-quarter guidance implies slower growth than the latest quarter, while full-year revenue is expected to reach $4.515 billion to $4.525 billion.
Datadog reported strong third-quarter results on Wednesday, November 4, with revenue rising 35% year over year to $1.20 billion for the period ended September 30. The company also issued fourth-quarter and full-year guidance that points to slower near-term growth, making customer expansion and AI adoption key issues for investors.
The Datadog investor release said third-quarter GAAP operating income reached $75 million, compared with a loss of $6 million in the year-earlier period. Non-GAAP operating income was $334 million, producing a 28% adjusted operating margin versus 23% a year earlier. GAAP diluted earnings per share were $0.32, while non-GAAP diluted earnings per share were $0.81.
Customer Expansion Supports Platform Demand
Datadog ended September with about 4,860 customers generating at least $100,000 in annual recurring revenue, up from about 4,060 a year earlier. The company said it is seeing strong adoption across its platform as customers expand digital operations and deploy artificial intelligence.
Cash generation also remained a substantial part of the quarterly picture. Operating cash flow was $290 million and free cash flow was $251 million. Datadog reported $5.2 billion in cash, cash equivalents and marketable securities at September 30.
The company also introduced Scout 1.0, its first specialized model from the Datadog AI Research team. Scout is being used in Bits Investigation, a product aimed at helping customers investigate production issues and reduce the burden on on-call teams.
Outlook Signals A Lower Growth Rate
Datadog expects fourth-quarter revenue of $1.19 billion to $1.20 billion, with non-GAAP operating income of $280 million to $290 million and non-GAAP diluted earnings per share of $0.69 to $0.71. Full-year revenue guidance stands at $4.515 billion to $4.525 billion, while non-GAAP operating income is expected at $1.095 billion to $1.105 billion.
The fourth-quarter revenue range implies a slower growth rate than the third quarter. Management said the outlook assumes revenue from its largest customer at the minimum commitment, a factor that increases the importance of broader customer demand and product adoption in the next reporting period.
Datadog stock traded at 162.50 euros on Lang & Schwarz at 14:02 CET on Friday, November 6. The real-time quote of Datadog stock provides the latest trading view.
Datadog at a Glance
- Company: Datadog, Inc.
- ISIN: US23804L1035
- Ticker: DDOG
- Home exchange: NASDAQ
- Lang & Schwarz quote: 162.50 euros at 14:02 CET on November 6, 2026
- Third-quarter revenue: $1.20 billion
- Full-year 2026 revenue outlook: $4.515 billion to $4.525 billion
Broader technology investors can follow developments through the latest S&P 500 market coverage.
More news and analyses on Datadog stock will track customer growth, AI product adoption and the company's progress against its revised 2026 outlook.
