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Datadog Rallies on Q4 Beat as 2026 Outlook Points to About 20% Growth

Shares climb after Datadog topped estimates, with a full-year forecast that implies slower but durable expansion.

Overview

  • Q4 revenue rose 29% year over year to $953 million and adjusted EPS reached $0.59, beating consensus on both metrics.
  • Fiscal 2026 guidance calls for $4.06–$4.10 billion in revenue and $2.08–$2.16 in non-GAAP EPS, with Q1 revenue projected at $951–$961 million and EPS at $0.49–$0.51.
  • Customer count reached 32,700 and $1 million-plus customers increased to 603, supported by deeper product adoption including 31% using six or more products.
  • Profitability remained strong with an 81.4% gross margin, roughly 24% adjusted operating margin, and $291 million in free cash flow in Q4.
  • Rosenblatt reiterated a Buy rating and a $185 price target, citing robust execution despite management’s cautious growth cadence.