Datadog stock faces higher Q3 bar after Evercore target hike
Published on 11/02/2026 at 11:24 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSAnalysts raise the earnings bar
- Evercore ISI expects third-quarter revenue of USD 1.19 billion, above its estimate and the Street view.
- Datadog is scheduled to report before US markets open on Wednesday, November 4, followed by an 8:00 a.m. Eastern Time call.
- Investors will focus on AI observability demand, customer usage and the effect of a large customer reducing consumption.
Evercore ISI raised its price target for Datadog to USD 300 and retained an Outperform rating ahead of the company's fiscal third-quarter report on Wednesday, November 4. The research firm cited business momentum from discussions with large partners and customers, according to Investing.com.
Revenue expectations move higher
Evercore expects Datadog to generate fiscal third-quarter revenue of USD 1.19 billion, or about 34 percent year over year. That forecast is above the firm's USD 1.14 billion estimate and the Street estimate of USD 1.146 billion.
The firm said partners with practices exceeding USD 10 million and customers with multimillion-dollar Datadog spending were tracking at or above plan during the quarter. It also pointed to continued consolidation deals as customers move from Dynatrace, New Relic and Splunk to Datadog.
AI observability, Bits AI and the MCP server are appearing in more customer deals, Evercore said. The research firm also sees AI spending shifting from pilot projects into core budgets, a development that could support demand for Datadog's monitoring and security products.
Usage reduction remains a watch item
Evercore expects headline growth to decline by about one percentage point sequentially as lower usage from Datadog's largest customer takes effect. The firm also cautioned that some large AI-native companies are moving logs and large-language-model evaluations to lower-cost technology stacks.
Datadog is scheduled to release its fiscal third-quarter results before US markets open on Wednesday, November 4, with a conference call at 8:00 a.m. Eastern Time. Revenue delivery, customer usage, AI-related demand and the outlook for the next fiscal year are likely to shape the market's assessment of the report.
Datadog stock traded at 213.75 euros on Lang & Schwarz at 11:15 CET on Monday, November 2, 2026. The real-time quote of Datadog stock is available separately.
Datadog, Inc.
- ISIN: US23804L1035
- Ticker: DDOG
- Trading venue: Lang & Schwarz
- Quote: EUR 213.75 on Monday, November 2, 2026, at 11:15 CET
The S&P 500 provides the broader US market backdrop for software shares: current market coverage of the S&P 500.
More news and analyses on Datadog stock will follow as the company reports its third-quarter results.
