Datadog earnings date
Datadog (3QD) Q3 2026 Earnings Report
DE:3QD Q3 2026 EPS Results
- Actual EPS
- EUR 0.73
- Consensus EPS
- EUR 0.58
- Beat/Miss
- Beat by +EUR 0.15
- One Year Ago EPS
- EUR 0.50
DE:3QD Q3 2026 Revenue Results
- Actual Revenue
- EUR 1.08B
- Expected Revenue
- EUR 1.04B
- Beat/Miss
- Beat by +EUR 45.97M
- YoY Revenue Growth
- +35.16%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/04/2026
- Time
- Before Open
- Conference Call
- Wednesday, November 4, 2026
Datadog's next earnings date is estimated for February 18, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
The call was strongly positive overall. Datadog reported 35% revenue growth, accelerating non-AI customer growth, expanding AI adoption, higher platform penetration, strong profitability and cash flow, significant enterprise wins, and continued investment across a broad opportunity set. The main negatives were reduced usage from the largest customer, moderated Q4 growth guidance, early-renewal pricing headwinds, short-term usage volatility, and the still-developing AI training market.
For the fourth quarter, Datadog expects revenue in the range of $1.19 billion to $1.2 billion, representing 25 to 26 percent year over year growth; excluding the largest customer, Q4 revenue growth implied in the guidance is in the low to mid-30s percent range, with the largest customer’s revenue at their minimum commitment. Non GAAP operating income is expected to be in the range of $280 million to $290 million, implying an operating margin of 24 percent, and non GAAP net income per share is expected to be in the $0.69 to $0.71 per-share range, based on approximately 379 million weighted average diluted shares outstanding. For fiscal year 2026, revenue is expected to be in the range of $4.515 billion to $4.525 billion, representing approximately 32 percent year over year growth; non GAAP operating income is expected to be in the range of $1.09 billion to $1.105 billion, implying an operating margin of 24 percent; and non GAAP net income per share is expected to be in the range of $2.73 to $2.75, based on approximately 375 million weighted average diluted shares outstanding. Net interest and other income is expected to be approximately $200 million, cash taxes about $30 million to $40 million, the non-GAAP tax rate 21 percent for 2026 and going forward, and capital expenditures and capitalized software together in the 3 to 4 percent of revenue range in fiscal year 2026.
- Strong Q3 Revenue GrowthQ3 revenue was $1.197 billion, up 35% year over year and above the high end of guidance. Management described execution as strong, with broad-based strength across product lines, customer segments, spending bands, and industries.
- Non-AI Customer Growth AcceleratedRevenue growth from non-AI customers accelerated for the fifth straight quarter to the high-20s percent year over year, up about 1 percentage point from the prior quarter and from about 20 percent in the year-ago quarter.
- Customer Base and Enterprise ExpansionDatadog ended Q3 with about 33.5 thousand customers, up from about 32 thousand a year ago, and about 4.86 thousand customers with ARR of $100 thousand or more, up from about 4.06 thousand a year ago. These customers generated about 91% of ARR.
- Strong Retention MetricsTrailing 12-month net revenue retention was in the low 120s percent, similar to the prior quarter. Gross revenue retention remained stable in the mid- to high 90s, and churn remained low.
- Platform Adoption IncreasedThe percentage of customers using four or more products rose to 61% from 54% a year ago; customers using six or more products rose to 41% from 31%; and customers using ten or more products doubled to 16% from 8%.
- Infrastructure Monitoring Passed $2 Billion ARRThe infrastructure monitoring suite exceeded $2 billion in ARR and was growing in the mid-30s percent year over year. Management said the current growth is not directly related to GPUs, which remain an opportunity that is not yet widely monetized.
- AI Customer and Usage GrowthDatadog served more than 850 AI customers, up from about 750 the prior quarter, including 39 customers spending more than $1 million annually. All 15 of the top 15 AI leaders were customers, about one-third of customers used at least one AI product, and three-quarters of $100 thousand-plus customers used at least one AI product.
- Rapid Growth in AI Infrastructure MonitoringThe number of monitored GPU devices increased by a factor of 8 so far this year, while the number of spans sent to agent observability increased by a factor of 9. More than one-third of Cloud Cost Management customers tracked AI costs, with the number of customers doing so up more than 11x.
- Bits AI and Scout MomentumBits AI was described as the fastest-adopted product in Datadog's history, and Bits testing became generally available in October. Datadog introduced Scout, its reasoning model optimized for SRE tasks; management said it performed on par with or better than frontier models on alert investigations at a fraction of the inference cost.
- Agentic Activity ExpandedThe number of MCP tool calls increased by a factor of 50 so far this year. Datadog also made agent observability available through the Anthropic marketplace and became a launch partner for OpenAI's new enterprise marketplace.
- Industry RecognitionForrester named Datadog a leader in its 2026 Forrester Wave for AIOps platforms, and Gartner's August 2026 AI vendor report called Datadog the company to beat for observability platforms.
- Large Enterprise and Public Sector WinsDatadog signed a 5-year, 7-figure annualized deal with a U.S. Federal Defense Agency, supported by its FedRAMP High certification, and is expanding its government platform toward Impact Level 5. It also signed 7-figure annualized deals with two major Japanese banks, both adopting the full Datadog platform.
- Additional Strategic Customer WinsDatadog signed or expanded multiple large accounts, including a leading software company expanding to 20 products, a home health care software company consolidating four tools and starting with nine products, an online entertainment company expanding to 23 products, a leading AI coding company growing to 13 products, and an AI division of one of the world's largest technology companies whose annual commitment nearly tripled after only two quarters.
- Strong New-Customer ContributionNew customers contributed about 30% of year-over-year revenue growth in Q3, up from 25% in the year-ago quarter. Management also said average land size has increased as platform adoption has broadened and new AI-native companies scale faster.
- Profitability and Cash Flow StrengthGross profit was $972 million, with an 81.2% gross margin. Operating income was $334 million, representing a 28% operating margin versus 23% in both the prior quarter and the year-ago quarter. Free cash flow was $251 million, with a 21% quarterly margin and a 26% trailing-12-month margin.
- Healthy Balance Sheet and RPO GrowthDatadog ended the quarter with $5.2 billion in cash, cash equivalents, and marketable securities. Billings were $1.16 billion, up 30% year over year, while remaining performance obligations were $3.85 billion, up 38% year over year; current RPO grew in the mid-30s percent year over year.
- Full-Year 2026 OutlookFiscal 2026 revenue guidance was $4.515 billion to $4.525 billion, representing approximately 32% year-over-year growth. Non-GAAP operating income guidance was $1.09 billion to $1.105 billion, implying a 24% operating margin, and non-GAAP EPS guidance was $2.73 to $2.75.
- Continued Investment in Growth OpportunitiesDatadog is continuing to invest in go-to-market capacity, research and development, AI for Datadog, Datadog for AI, government capabilities, and its Datadog for Startups program. Management said the company continues to see white space by geography and end market, as well as opportunities to increase market share and platform penetration.
DE:3QD Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 18, 2027 | 2026 (Q4) | 0.63- | 0.53 | ― | ― |
| Nov 04, 2026 | 2026 (Q3) | 0.580.73 | 0.5 | 47.27% (+0.24) | |
| Aug 06, 2026 | 2026 (Q2) | 0.530.59 | 0.42 | 41.30% (+0.17) | |
| May 07, 2026 | 2026 (Q1) | 0.460.54 | 0.42 | 30.43% (+0.13) | |
| Feb 10, 2026 | 2025 (Q4) | 0.500.53 | 0.44 | 20.41% (+0.09) | |
| Nov 06, 2025 | 2025 (Q3) | 0.410.50 | 0.42 | 19.57% (+0.08) | |
| Aug 07, 2025 | 2025 (Q2) | 0.370.42 | 0.39 | 6.98% (+0.03) | |
| May 06, 2025 | 2025 (Q1) | 0.390.42 | 0.4 | 4.55% (+0.02) | |
| Feb 13, 2025 | 2024 (Q4) | 0.390.44 | 0.4 | 11.36% (+0.05) | |
| Nov 07, 2024 | 2024 (Q3) | 0.360.42 | 0.41 | 2.22% (+0.01) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
