Zacks Investment Research·17h ago
Datadog (DDOG) is a Great Momentum Stock: Should You Buy?Does Datadog (DDOG) have what it takes to be a top stock pick for momentum investors? Let's find out.
Datadog, Inc.(DDOG)Earnings, Financials & Key Ratios
DDOG•NASDAQ
$256.81
856.0× P/E·Price updated Jul 7, 2026
AboutDatadog, Inc. provides monitoring and analytics platform for developers, information technology operations teams, and business users in the cloud in North America and internationally. The company's SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, log management, and security monitoring to provide real-time observability of its customers technology stack. Its platform also provides user experience monitoring, network performance monitoring, cloud security, developer-focused observability, and incident management, as well as a range of shared features, such as dashboards, analytics, collaboration tools, and alerting capabilities. The company was incorporated in 2010 and is headquartered in New York, New York.Show more
- Revenue$3.43B+27.7%
- EBITDA$78M-51.5%
- Net Income$108M-41.4%
- EPS (Diluted)0.30-41.2%
- Gross Margin79.96%-1.0%
- EBITDA Margin2.28%-62.0%
- Operating Margin-1.29%-164.0%
- Net Margin3.14%-54.1%
- ROE3.34%-56.9%
DDOG Price & Volume
Datadog, Inc. (DDOG) stock price & volume — 10-year historical chart
Loading chart...
Accelerating Revenue Growth Amidst Persistent Margin Pressure
Investment Thesis • Updated 2026Q1
VerdictNeutral
Growth:Accelerating
Profitability:Moderate
Financial:Mixed
Cash Flow:Robust
Primary Risk:High stock-based compensation dilution
Key Thesis Takeaways
- Datadog demonstrates robust top-line momentum with 32.2% year-over-year revenue growth in 2026Q1, yet the company's reliance on aggressive stock-based compensation, which reached $205.4 million in 2025Q4, complicates the assessment of true GAAP profitability.
- While the platform's consumption-based model drives efficient free cash flow generation, investors should monitor the gradual contraction of gross margins from 82.2% in 2023Q4 to 79.2% in 2026Q1.
- The firm's ability to maintain its competitive edge while balancing high R&D spending remains the primary determinant for long-term valuation sustainability.
Verdict Logic
while the 32.2% revenue growth rate is compelling, the current P/E of 799.23 and the persistent dilution from stock-based compensation warrant a cautious approach until operating margins show more consistent expansion.
DDOG Growth Metrics
Datadog, Inc. (DDOG) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years-
5 Years41.53%
3 Years26.95%
TTM29.54%
Profit CAGR
10 Years-
5 Years-
3 Years-
TTM-18.15%
EPS CAGR
10 Years-
5 Years-
3 Years-
TTM-16.79%
Return on Capital
10 Years-3.4%
5 Years-0.94%
3 Years-0.23%
Last Year-0.99%
DDOG Recent Earnings
Datadog, Inc. (DDOG) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 12/12 qtrs (100%)●Beat Revenue 12/12 qtrs (100%)
Q2 2026Latest
May 7, 2026Metric
Actual
Est
EPS
$0.60+18.1%
$0.51
Rev
$1.0B+4.8%
$960M
Q1 2026
Feb 10, 2026Metric
Actual
Est
EPS
$0.59+6.3%
$0.56
Rev
$953M+3.8%
$919M
Q4 2025
Nov 6, 2025Metric
Actual
Est
EPS
$0.55+20.2%
$0.46
Rev
$886M+3.9%
$853M
Q3 2025
Aug 7, 2025Metric
Actual
Est
EPS
$0.46+12.1%
$0.41
Rev
$827M+4.5%
$791M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 7, 2026 | $0.60vs $0.51+18.1% | $1.0Bvs $960M+4.8% |
| Q1 2026 | Feb 10, 2026 | $0.59vs $0.56+6.3% | $953Mvs $919M+3.8% |
| Q4 2025 | Nov 6, 2025 | $0.55vs $0.46+20.2% | $886Mvs $853M+3.9% |
| Q3 2025 | Aug 7, 2025 | $0.46vs $0.41+12.1% | $827Mvs $791M+4.5% |
Based on last 12 quarters of dataView full earnings history →
Latest DDOG News
Recent stock market news and headlines for Datadog, Inc. (DDOG)
Market Watch·1 day ago
Software stocks have rarely seen such divergent performances. Here's how to pick winners.An Evercore analyst notes that infrastructure software stocks have vastly outperformed application names. But there's still hope for companies like Salesforce.
Schaeffers Research·1 day ago
Chip Stocks Boost Nasdaq, S&P 500 Futures to Start the WeekStock futures are moving mixed after last week's wild tech-fueled performance
Benzinga·1 day ago
Datadog, EHang Holdings And Other Big Stocks Moving Lower In Monday's Pre-Market SessionU.S. stock futures were higher this morning, with the Nasdaq 100 futures gaining around 1% on Monday.
The Motley Fool·Jun 25, 2026
Adobe vs. Datadog: Which Technology Stock Is a Better Buy in 2026?Adobe maintains a massive cash flow profile and dominant position in the creative and document software markets. Datadog continues to deliver high revenue growth as businesses expand their complex cloud computing infrastructures.
Peers Comparison
Key metrics vs top competitors for Datadog, Inc. (DDOG)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $256.81 | $91.41B | 856.03 | 27.68% | 3.14% | 3.34% | — | |
| $45.11 | $13.15B | 83.54 | 18.82% | 8.06% | 6% | — | |
| $59.46 | $6.15B | 17.34 | 17.26% | 21.14% | 37.43% | — | |
| $337.04 | $229.7B | 210.65 | 14.87% | 7.95% | 6.3% | — | |
| $158.67 | $117.4B | 65.30 | 14.17% | 27.49% | 155.65% | — | |
| $37.90 | $4.34B | -126.33 | 11.04% | -1.15% | -3.71% | — |
Compare DDOG vs Peers
Datadog, Inc. (DDOG) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
DDOG SEC Filings & Documents
Datadog, Inc. (DDOG) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
May 7, 2026·SEC
Material company update
Apr 22, 2026·SEC
Material company update
Mar 2, 2026·SEC
10-K Annual Reports
210-Q Quarterly Reports
4Get notified when DDOG posts new earnings or crosses analyst targets
Free. No account needed. Unsubscribe any time.
DDOG Frequently Asked Questions
Datadog, Inc. (DDOG) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Datadog, Inc.'s revenue?
Datadog, Inc. (DDOG) reported $3.67B in revenue for fiscal year 2025. This represents a 3544% increase from $100.8M in 2017.
How fast is Datadog, Inc. growing?
Datadog, Inc. (DDOG) grew revenue by 27.7% over the past year. This is strong growth.
Is DDOG profitable?
Yes, Datadog, Inc. (DDOG) is profitable, generating $135.7M in net income for fiscal year 2025 (3.1% net margin).
Dividend & Returns
What is DDOG's return on equity?
Datadog, Inc. (DDOG) has a return on equity (ROE) of 3.3%. This is below average, suggesting room for improvement.
What is Datadog, Inc.'s free cash flow?
Datadog, Inc. (DDOG) generated $1.08B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.