Datadog earnings: third quarter 2026

Datadog, which sells software that lets companies watch over their apps and cloud systems, had sales of $1.20 billion in the third quarter of 2026, up 35% from a year earlier. Profit rose faster still. The company also raised its forecasts for the year's sales and profit. ¹

Against what analysts expected

Analysts expected earnings of $0.18 a share on average, according to Nasdaq's earnings calendar. Datadog came in far above that on both of its own figures: $0.32 as reported, and $0.81 on its adjusted measure. ¹²

The strong points

• Sales grew by about a third from a year earlier, to $1.20 billion. ¹
• On the company's own adjusted measure, operating profit (the profit from running the business) reached 28% of sales, up from 23% a year ago. ¹
• The company's adjusted earnings per share rose to $0.81 from $0.55 a year earlier, and the reported figure more than tripled. ¹

The weak points

• Cash from running the business grew about 15%, well behind the growth in sales. ¹
• Money customers pay ahead of their service fell during the quarter, where a year earlier it had added cash. ¹

What the company expects

• Datadog now expects sales for 2026 of $4.515 billion to $4.525 billion, up from the range it gave three months ago, which topped out at $4.47 billion. ¹
• It raised its forecast for the year's adjusted operating profit to $1.095 billion to $1.105 billion, from $1.01 billion to $1.03 billion before. ¹

Our verdict on the quarter

A very strong report. Datadog raised its forecasts for the year's sales and profit, earned well above what analysts expected, and grew sales by about a third, with only slower cash growth as a small blemish.

The results as published

• The results release itself
• The filing it came with (SEC)
• The previous results, for what it forecast then

Notes

1. Datadog's results release, 4 November 2026: sec.gov. ↩
2. Nasdaq's earnings calendar, 4 November 2026. ↩