Why is Datadog (DDOG) in focus ahead of its 4 November earnings?

Sonal Goyal

28 October 2026 05:16 PM AEDT

Why is Datadog (DDOG) in focus ahead of its 4 November earnings?

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Key Highlights

Datadog reports third-quarter 2026 results before the US market opens on Wednesday 4 November, with a call at 8:00 a.m. Eastern Time.
Second-quarter Revenue was $1.12 billion, up 36 per cent, with non-GAAP Operating Income of $257 million, a 23 per cent margin.
The company had about 4,720 customers with annual Recurring Revenue of at least $100,000, up 23 per cent from roughly 3,850 a year earlier.

The upcoming report

Datadog, Inc. (NASDAQ:DDOG), the observability and security platform, reports third-quarter results before the US market opens on Wednesday 4 November 2026, with a call at 8:00 a.m. Eastern Time. The date was announced on 14 October. The report will show how results compare with the guidance issued in August.

Latest reported results

The most recent reported quarter is the second quarter of 2026, released on 6 August. Revenue was $1.12 billion, up 36 per cent from a year earlier. GAAP operating income was $5 million, while non-GAAP operating income was $257 million, a 23 per cent margin. Diluted Earnings per Share were $0.12 on a GAAP basis and $0.65 on a non-GAAP basis.

Operating cash flow was $316 million and free cash flow $279 million. The company had about 4,720 customers with annual recurring revenue of at least $100,000, up 23 per cent from roughly 3,850 a year earlier. Chief executive Olivier Pomel said customers are building and deploying with artificial intelligence, a theme management has repeatedly tied to demand.

The gap between GAAP and non-GAAP profit is worth noting. Non-GAAP figures exclude items such as stock-based compensation, which is substantial for a software company of this type, so readers should consider both measures when judging underlying profitability.

Company guidance

The figures below are management guidance issued with the second-quarter release, not results. For the third quarter, Datadog guided to revenue of $1.135 billion to $1.145 billion, non-GAAP operating income of $260 million to $270 million, and non-GAAP earnings per share of $0.63 to $0.65 on about 378 million diluted shares.

For the full year 2026, guidance is revenue of $4.45 billion to $4.47 billion, non-GAAP operating income of $1.01 billion to $1.03 billion, and non-GAAP earnings per share of $2.50 to $2.54 on about 376 million diluted shares.

Actual outcomes may differ, and the 4 November release will show how reported results compare with these ranges.

What to watch on 4 November

Several measurable items stand out. The first is revenue against the guided range and the pace of year-on-year growth relative to the 36 per cent reported in the second quarter. The second is the non-GAAP operating margin, which was 23 per cent last quarter and is guided to a similar level.

A third is the count of larger customers, particularly those above $100,000 in annual recurring revenue, as a gauge of enterprise adoption. A fourth is free cash flow, which provides a view of earnings quality beyond accounting profit. Finally, any revision to the full-year ranges will indicate how management views demand.

FAQs

Q: When does Datadog report third-quarter 2026 results?

A: Datadog reports before the US market opens on Wednesday 4 November 2026, with a call at 8:00 a.m. Eastern Time.

Q: What was Datadog's second-quarter 2026 revenue?

A: Revenue was $1.12 billion, up 36 per cent from a year earlier. Non-GAAP operating income was $257 million, a 23 per cent margin.

Q: What is Datadog's full-year 2026 guidance?

A: Guidance is revenue of $4.45 billion to $4.47 billion, non-GAAP operating income of $1.01 billion to $1.03 billion, and non-GAAP earnings per share of $2.50 to $2.54.

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