Datadog stock weighs strong growth against measured outlook

Datadog reported strong third-quarter growth on November 4, while its outlook points to a more measured near-term pace. The company's investor release said revenue rose 35% year over year to 1.20 billion US dollars for the quarter ended September 30, 2026.

Datadog stock traded at 168.80 euros on Lang & Schwarz at 16:33 CET on Wednesday, November 11, 2026. Compared with the 161.60 euro quote in the previous report published on November 10, the stock was 4.46% higher.

The latest report adds a fresh market update to the earnings picture and follows Datadog's release of new operating and product details. The company said it had about 4,860 customers with annual recurring revenue of at least 100,000 US dollars at the end of September, up from about 4,060 a year earlier.

Customer Expansion Supports Growth

Datadog also introduced Scout 1.0, its first specialized model from the AI Research team. The model is in Preview and powers Bits Investigation, which is designed to investigate production issues. Datadog said Scout delivers frontier-model performance at a fraction of the inference cost, supporting more frequent and earlier investigations.

Management expects fourth-quarter revenue of 1.19 billion to 1.20 billion US dollars, compared with 1.20 billion US dollars in the third quarter. The outlook also calls for non-GAAP operating income of 280 million to 290 million US dollars and non-GAAP diluted earnings per share of 0.69 to 0.71 US dollars.

Adjusted Results Need Context

The third quarter included GAAP operating income of 75 million US dollars and non-GAAP operating income of 334 million US dollars. Operating cash flow reached 290 million US dollars, while free cash flow was 251 million US dollars. The company notes that its non-GAAP measures exclude items including stock-based compensation, so investors should distinguish adjusted profitability from GAAP results.

For the full year, Datadog guides to revenue of 4.515 billion to 4.525 billion US dollars and non-GAAP operating income of 1.095 billion to 1.105 billion US dollars. The next test is whether broader platform adoption and AI usage can sustain customer expansion as the near-term growth rate moderates.

These figures are from Datadog's third-quarter financial results release.

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