DDOG Earnings: Datadog Stock Soars on Stellar EPS & Guidance

Datadog (DDOG) stock soared on Thursday after the cloud monitoring and analytics solutions company released its Q3 2025 earnings report. The company reported adjusted earnings per share of 55 cents, easily beating Wall Street’s estimate of 46 cents. This also represented a 19.6% increase year-over-year from 46 cents.

Datadog reported revenue of $886 million for Q3 2025, scoring another victory over analysts’ estimate of $853.62 million. It also represented a 28% increase year-over-year from $690 million. The company also reported $251 million in operating cash flow and $214 million in free cash flow.

Datadog stock was up 17.07% in pre-market trading on Thursday, following a 1.61% drop yesterday. The shares have rallied 8.46% year-to-date and 19.41% over the past 12 months.

Datadog Guidance

Datadog also impressed investors with its guidance for Q4 2025. The company expects adjusted EPS to come in between 54 cents and 56 cents, alongside revenue between $912 million and $916 million. That looks good compared to Wall Street’s estimate of 45 cents per share and revenue of $886.37 million.

Datadog provided investors with guidance for the full year of 2025 in its latest earnings report. It expects adjusted EPS of $2.00 to $2.02 and revenue between $3.386 billion and $3.39 billion. For comparison, analysts’ expectations are for adjusted earnings of $1.84 per share and revenue of $3.43 billion.

Is Datadog Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for Datadog is Strong Buy, based on 29 Buy and five Hold ratings over the past three months. With that comes an average DDOG stock price target of $171.54, representing a potential 10.69% upside for the shares. These ratings and price targets will likely change as analysts update their coverage after today’s earnings report.

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