Datadog stock clears 1% report-to-report move as Q3 growth holds

Datadog reported strong third-quarter results on Wednesday, November 4, 2026, but its outlook points to a more measured near-term growth profile. In its official earnings release, the company said revenue rose 35 percent year over year to 1.20 billion US dollars for the quarter ended September 30.

What changed since the last report

Datadog stock traded at 160.00 euros on Lang & Schwarz at 16:40 CET on Friday, November 6, 2026. That was 1.59 percent above the 157.50 euro quote cited in the previous report at 16:33 CET on Thursday, November 5, a separate report-to-report comparison.

The quarterly update added operating detail to the growth story. Non-GAAP operating income reached 334 million US dollars, producing a 28 percent margin, while operating cash flow was 290 million US dollars and free cash flow was 251 million US dollars. Datadog also 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.

AI products meet customer concentration

Datadog introduced Scout 1.0, the first specialized model from its AI Research team for investigating production issues. The model is in preview and powers the Bits Investigation feature, giving the company another product angle as customers expand their digital operations and AI workloads.

The release also highlighted a risk for investors: usage from large AI customers can create quarterly volatility. Datadog's fourth-quarter revenue outlook of 1.19 billion to 1.20 billion US dollars implies limited sequential expansion. The company expects full-year 2026 revenue of 4.515 billion to 4.525 billion US dollars and non-GAAP earnings per diluted share of 2.73 to 2.75 US dollars.

Needham retained its Buy rating and 300 US dollar price target, according to the previous report's coverage. The next major test is whether broader platform adoption and the 2027 outlook can offset fluctuations among individual AI customers.

Investors can follow the real-time quote of Datadog stock alongside the company's guidance and customer trends.

The broader S&P 500 market remains the relevant benchmark for this US-listed technology company.

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