Datadog Q3 2026 earnings review

Revenue rose 35.2% and beat consensus by 5.0%, but the Q4 revenue guide is flat.

Datadog · Q3 2026 · Published Nov 4, 2026 · By DeepCell AI · Sources

Datadog Q3 2026 earnings review

Quarter ended September 30, 2026

For information only, not investment advice. No rating or price target.

Built with DeepCell / deepcell.net

1 · Datadog (DDOG) Q3 2026 earnings review

Revenue rose 35.2% and beat consensus by 5.0%, but the Q4 revenue guide is flat

  1. 1.Revenue rose 35.2% to $1,197.1M, above the Zacks consensus of $1,140M
  2. 2.Non-GAAP diluted EPS of $0.81 beat the Zacks consensus of $0.64; GAAP diluted EPS was $0.32
  3. 3.Q4 revenue guidance midpoint of $1,195M is 0.2% below Q3 revenue and below the Zacks consensus
  4. 4.Non-GAAP operating margin rose 451 bps to 27.9%
  5. 5.Shares fell 11.1% intraday on Nov 4 vs. the Nov 3 close; CNBC cited soft Q4 revenue guidance

Note: Non-GAAP figures follow the company reconciliation. The Nov 4 price is CNBC intraday at 10:27 AM ET, not a close.Source: Datadog Form 8-K, Nov 4, 2026; Zacks via AP and Yahoo Finance, Nov 4, 2026; CNBC, Nov 4, 2026; analysis of company data

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2 · Executive summary

Q3 revenue beat the Zacks consensus by 5.0%, and non-GAAP EPS beat by 26.6%

Q3 2026 results vs. Zacks consensus

MetricActualConsensusVarianceResult
Revenue$1,197.1M$1,140.0M+$57.1M / +5.0%Beat
Non-GAAP diluted EPS$0.81$0.64+$0.17 / +26.6%Beat

Share price, Nov 3 to Nov 4, 2026

MeasureNov 3 closeNov 4 intradayChange
Datadog (Nasdaq)$220.52$196.12-11.1%

Note: Zacks revenue consensus is $1.14B as published (10 analysts); EPS is 11 analysts. Nov 4 price is CNBC last at 10:27 AM ET, not a close.Source: Datadog Form 8-K, Nov 4, 2026; Zacks via AP and Yahoo Finance, Nov 4, 2026; CNBC quote, Nov 4, 2026; analysis of company data

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3 · Q3 results vs. consensus

Q4 revenue guidance sits 0.4% below the Zacks consensus, while EPS guidance is 9.4% above

Guidance midpoint vs. Zacks consensus

MetricGuidanceConsensusVariancevs. Street
Q4 2026 revenue$1,195M$1,200M-$5.0M / -0.4%Below
Q4 non-GAAP diluted EPS$0.70$0.64+$0.06 / +9.4%Above
FY 2026 revenue$4,520M$4,460M+$60.0M / +1.3%Above
FY non-GAAP diluted EPS$2.74$2.53+$0.21 / +8.3%Above

Q4 2026 guidance ranges, Nov 4

MetricLowHighMidpoint vs. Q3
Revenue$1,190M$1,200M-0.2%
Non-GAAP operating income$280M$290M-14.7%
Non-GAAP diluted EPS$0.69$0.71-13.6%

Note: Variance is guidance midpoint less consensus. Zacks Q4 revenue is $1.2B as published. Midpoint vs. Q3 compares with Q3 actuals.Source: Datadog Form 8-K, Nov 4, 2026; Zacks via Yahoo Finance, Nov 4, 2026; analysis of company data

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4 · Q4 guidance vs. consensus

Revenue rose 35.2%, and GAAP operating income turned positive at $74.7M

  1. Revenue also grew from Q2Revenue rose 6.7% from Q2 2026.
  2. Non-GAAP EPS roseNon-GAAP diluted EPS rose 47.3% to $0.81.
  3. SBC stayed largeSBC was $237.2M, or 19.8% of revenue.

Key figures in $M and YoY % for Q3 2026 vs. Q3 2025

$M unless notedQ3 2025Q3 2026YoY
Revenue$885.7M$1,197.1M35.2%
Gross profit$709.2M$959.9M35.4%
Operating income (loss)-$5.8M$74.7Mn.m.
Net income$33.9M$118.3M249.2%
Diluted EPS$0.10$0.32220.0%

Note: SBC is stock-based compensation. Figures are as reported (GAAP). n.m. means not meaningful, as Q3 2025 was a loss.Source: Datadog Form 8-K, Nov 4, 2026; analysis of company data

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5 · Q3 key financials

Customers with $100k+ ARR rose 19.7% to about 4,860

Customer metrics

Approximate counts, Q3 2025 vs. Q3 2026

MetricQ3 2025Q3 2026YoY
Customers with $100k+ ARR4,0604,86019.7%
Customers32,00033,5004.7%
Revenue ($M)$885.7M$1,197.1M35.2%
Customers with $100k+ ARR generate about 91% of ARR“Datadog delivered a strong third quarter, with 35% year-over-year revenue growth, $290 million in operating cash flow, and $251 million in free cash flow.” Olivier Pomel, CEO

Note: Datadog reports one segment. ARR is annualized revenue run-rate. Customer counts are company approximations; the total is from the call.Source: Datadog Form 8-K, Nov 4, 2026; Datadog Q3 2026 earnings call, Nov 4, 2026 (transcript via Investing.com); analysis of company data

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6 · Customer metrics

Q4 revenue guidance midpoint of $1,195M is $2.1M below Q3 revenue

Quarterly revenue and Q4 guidance midpoint

$M

$M · Q3 2025: $886M$M · Q2 2026: $1,121M$M · Q3 2026: $1,197M$M · Q4 2026 guide: $1,195MQ3 2025Q2 2026Q3 2026Q4 2026 guide$0M$500M$1,000M$1,500M$886M$1,121M$1,197M$1,195M
Q4 guidance assumes the largest customer at its minimum commitment, management said

Note: Q4 2026 guide is the midpoint of the $1,190M to $1,200M range.Source: Datadog Form 8-K, Nov 4, 2026; Datadog Q3 2026 earnings call, Nov 4, 2026 (transcript via Investing.com); analysis of company data

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7 · Revenue trend and Q4 guide

Non-GAAP R&D fell to 27.7% of revenue, and S&M fell 110 bps

Non-GAAP expense ratios

% of revenue, Q3 2025 vs. Q3 2026

Non-GAAP R&D · Q3 2025: 30.4%Non-GAAP R&D · Q3 2026: 27.7%Non-GAAP S&M · Q3 2025: 22.1%Non-GAAP S&M · Q3 2026: 21.0%Non-GAAP G&A · Q3 2025: 5.2%Non-GAAP G&A · Q3 2026: 4.6%Q3 2025Q3 20260.0%10.0%20.0%30.0%40.0%30.4%27.7%22.1%21.0%5.2%4.6%

Non-GAAP R&DNon-GAAP S&MNon-GAAP G&A

Non-GAAP S&M was 21.0% of revenue, from 22.1%

Note: SBC is stock-based compensation. Ratios are non-GAAP expense divided by revenue. Non-GAAP excludes SBC, payroll taxes on stock and amortization.Source: Datadog Form 8-K, Nov 4, 2026; analysis of company data

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8 · Non-GAAP expense ratios

Net income rose to $118.3M as gross profit rose $250.7M

Net income bridge

$M, Q3 2025 to Q3 2026

$M · Q3 2025: $34M$M · Gross profit: $251M$M · Opex: -$170M$M · Other income: $8M$M · Taxes: -$4M$M · Q3 2026: $118MQ3 2025Gross profitOpexOther incomeTaxesQ3 2026$0M$100M$200M$300M$400M$34M$251M-$170M$8M-$4M$118M
Operating expenses rose $170.2M, led by R&D

Note: Steps are YoY changes. Higher opex and taxes are reductions. Other income is interest and other income less interest expense.Source: Datadog Form 8-K, Nov 4, 2026; analysis of company data

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9 · Net income bridge

Non-GAAP operating margin rose 451 bps to 27.9%, while gross margin held at 80.2%

Gross and non-GAAP operating margins

% of revenue, Q3 2025 vs. Q3 2026

Gross margin · Q3 2025: 80.1%Gross margin · Q3 2026: 80.2%Non-GAAP operating margin · Q3 2025: 23.4%Non-GAAP operating margin · Q3 2026: 27.9%Q3 2025Q3 20260.0%25.0%50.0%75.0%90.0%80.1%80.2%23.4%27.9%

Gross marginNon-GAAP operating margin

GAAP operating margin rose to 6.2% from (0.7%)

Note: SBC is stock-based compensation. Margins are profit divided by revenue. Non-GAAP excludes SBC, payroll taxes on stock, amortization and M&A costs.Source: Datadog Form 8-K, Nov 4, 2026; analysis of company data

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10 · Margin analysis

11 · Free cash flow

Q3 revenue beat company guidance by 5.0%, and non-GAAP EPS beat by 26.6%

Q3 2026 results vs. company guidance of Aug 6, 2026

$M unless noted, Q3 2026

MetricGuidanceActualVariance
Revenue$1,140M$1,197.1M+5.0%
Non-GAAP operating income$265M$334.3M+26.1%
Non-GAAP diluted EPS$0.64$0.81+26.6%
Revenue was $52.1M above the top of the Aug 6 range of $1,145M

Note: Guidance is from the Q2 2026 release of Aug 6, 2026; figures use range midpoints.Source: Datadog Form 8-K, Nov 4, 2026; Datadog Form 8-K, Aug 6, 2026 (prior guidance); analysis of company data

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12 · Q3 vs. company guidance

Cash and marketable securities rose to $5,233.6M, against $987M of convertible notes

Cash, marketable securities and convertible notes

$M, Dec 31, 2025 vs. Sep 30, 2026

$MDec 31, 2025Sep 30, 2026
Cash and cash equivalents$401.3M$881.2M
Marketable securities$4,073.5M$4,352.4M
Cash and marketable securities$4,474.8M$5,233.6M
Convertible senior notes, net$983.4M$986.6M
Cash and securities less convertible notes reached $4,247.0M, up $755.6M since Dec 31

Note: The notes are 0% convertible senior notes due 2029, $1.0B principal. Deferred revenue detail is in the appendix.Source: Datadog Form 8-K, Nov 4, 2026; analysis of company data

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13 · Balance sheet and net cash

Q4 guidance implies non-GAAP operating margin of 23.8%, below Q3 at 27.9%

Indicator
What to watch
Implication
Q3 reading
Largest customer
Spend vs. minimum commitment
Revenue swings either way
Q4 guide assumes the minimum
Q4 revenue
Guidance midpoint
Change of -0.2% QoQ
Q3 revenue $1,197.1M
Operating costs
Hiring and re:Invent marketing
Margin falls in Q4
Q3 opex $885.2M
SBC
Stock-based pay
Dilution and GAAP gap
SBC 19.8% of revenue

Note: SBC is stock-based compensation. These are analytical watch points, not company targets. Q4 drivers follow management comments on the call.Source: Datadog Form 8-K, Nov 4, 2026; Datadog Q3 2026 earnings call, Nov 4, 2026 (transcript via Investing.com); analysis of company data

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14 · Key risks to guidance

Appendix: revenue and customer detail

ClaimEvidenceCalculation
Revenue grew from Q2Revenue 6.7% QoQ from $1,121.5MQ3 2026 divided by Q2 2026
$100k+ customers roseUp about 800 to about 4,860Release; approximate counts
AI customers roseMore than 850, from about 750 in Q2Earnings call
Infrastructure Monitoring is largeARR above $2,000MEarnings call

ARR is annualized revenue run-rate. Source: Datadog Form 8-K, Nov 4, 2026; Datadog Q3 2026 earnings call, Nov 4, 2026 (transcript via Investing.com); analysis of company data

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15 · Appendix: Revenue detail

Appendix: profit and margin detail

ClaimEvidenceCalculation
R&D rose slower than revenueR&D $491.6M, up 22.3% YoYIncome statement
Non-GAAP gross margin heldNon-GAAP gross margin 81.2% to 81.2%Non-GAAP gross profit over revenue
Non-GAAP net income roseNon-GAAP net income $304.3M, up 54.2%Company reconciliation
Effective tax rate stayed lowEffective tax rate 5.0% to 5.0%Tax provision divided by pretax income

Source: Datadog Form 8-K, Nov 4, 2026; analysis of company data

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16 · Appendix: Profit and margins

17 · Appendix: Guidance and cash

Appendix: billings, RPO and deferred revenue

ClaimEvidenceCalculation
Billings roseBillings $1,160M, up 30% YoYEarnings call
RPO rose fasterRPO $3,850M, up 38% YoYEarnings call
Deferred revenue roseTotal deferred revenue up $37.9M to $1,300.2MCurrent plus non-current
Net retention heldTrailing 12-month net revenue retention in the low 120s %Earnings call

RPO is remaining performance obligations. Source: Datadog Form 8-K, Nov 4, 2026; Datadog Q3 2026 earnings call, Nov 4, 2026 (transcript via Investing.com); analysis of company data

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18 · Appendix: Billings and RPO

Appendix: operating expense and non-GAAP detail

GAAP operating expenses, $M and YoY %

$M unless notedQ3 2025Q3 2026YoY
Research and development$402.0M$491.6M22.3%
Sales and marketing$238.7M$303.3M27.0%
General and administrative$74.3M$90.3M21.6%
Total operating expenses$715.0M$885.2M23.8%

Non-GAAP results, $M and YoY %

$M unless notedQ3 2025Q3 2026YoY
Non-GAAP operating income$207.4M$334.3M61.2%
Non-GAAP net income$197.4M$304.3M54.2%
Stock-based compensation$200.6M$237.2M18.3%
Non-GAAP diluted EPS ($)$0.55$0.8147.3%

Note: Non-GAAP excludes SBC, intangible amortization, payroll taxes on stock, M&A costs, issuance-cost amortization and tax effects.Source: Datadog Form 8-K, Nov 4, 2026; analysis of company data

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19 · Appendix: Opex and non-GAAP

Appendix: sources

  • Filing: Datadog Form 8-K, Nov 4, 2026 — https://www.sec.gov/Archives/edgar/data/1561550/000162828026069792/0001628280-26-069792-index.htm
  • Earnings release, Q3 2026 (Ex. 99.1) — https://www.sec.gov/Archives/edgar/data/1561550/000162828026069792/ex-991x20260930x8k.htm
  • Prior guidance and Q2 figures: Q2 2026 release (Ex. 99.1), Aug 6, 2026 — https://www.sec.gov/Archives/edgar/data/1561550/000162828026053829/ex-991x20260630x8k.htm
  • Earnings call, Nov 4, 2026 (transcript via Investing.com) — https://www.investing.com/news/transcripts/earnings-call-transcript-datadog-tops-q3-2026-estimates-shares-fall-premarket-93CH-4999761
  • Q3 consensus: Zacks via AP and Yahoo Finance, Nov 4, 2026 — https://finance.yahoo.com/markets/stocks/articles/datadog-q3-earnings-snapshot-121256404.html; cross-check: Investing.com ($1.14B, $0.64)
  • Q4 and FY consensus: Zacks Equity Research via Yahoo Finance, Nov 4, 2026 — https://finance.yahoo.com/markets/stocks/articles/datadog-ddog-beats-q3-earnings-125503081.html
  • Share price: CNBC DDOG quote, Nov 3 close and Nov 4 last price at 10:27 AM ET — https://www.cnbc.com/quotes/DDOG; reason cited: https://www.cnbc.com/2026/11/04/stocks-making-the-biggest-moves-premarket-djt-tsla-crwv-nvo.html

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20 · Sources

Important disclosures and disclaimer

For information only. This presentation is provided for information only. It is not investment, legal, tax or accounting advice, and it is not an offer, or a solicitation of an offer, to buy or sell any security.

No recommendation. It carries no rating, price target or buy, sell or hold view, and it was prepared without regard to any reader's investment objectives, financial situation or needs.

Sources and accuracy. Company figures come from Datadog's Form 8-K of November 4, 2026 (Exhibit 99.1), its earnings call of the same day and, for prior guidance, its Form 8-K of August 6, 2026. Consensus estimates (Zacks via AP and Yahoo Finance, Investing.com) and share prices (CNBC) are third-party data, credited on the sources page. We have not independently verified third-party data and make no warranty that any information here is accurate, complete or timely.

Forward-looking statements. Company guidance, consensus estimates and the watch items in this deck are forward-looking. They rest on assumptions that may prove wrong, and actual results may differ materially.

Past performance. Past results, including those for Q3 2026, are not a reliable indicator of future results.

Non-GAAP measures. Non-GAAP gross profit, operating income, net income, diluted EPS and free cash flow follow Datadog's own definitions. They supplement, and do not replace, GAAP results, and they may not be comparable with other companies' measures. The earnings release reconciles them to GAAP.

No liability. No liability is accepted for any direct or indirect loss arising from the use of this presentation or its contents.

No affiliation. This presentation is not affiliated with, reviewed or endorsed by Datadog, Inc. and does not represent its views. Company and brand names belong to their owners.

How it was made. The deck was built with DeepCell, with figures linked to a model in the file. Readers should check the figures against the original filings and consult a qualified professional adviser before making any investment decision.

Date of analysis. The analysis reflects information available as of the morning of November 4, 2026, US Eastern time, during the regular session. It will not be updated for later events, and views may change without notice.

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21 · Disclosures

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