Datadog Reports Q3 2026 Financial Results: Revenue Up 35% YoY to $1.20B

Datadog, Inc. (DDOG) Q3 2026 Earnings & Business Update

Executive Summary

On November 4, 2026, Datadog furnished an 8-K under Item 2.02 reporting financial results for its third quarter ended September 30, 2026. The company delivered strong top-line and bottom-line momentum, driven by ongoing cloud migrations and expanded customer enterprise adoption.

Key Financial Highlights (Q3 2026)

• Revenue: Reached $1.20 billion ($1,197.09 million), representing a 35% increase year-over-year compared to $885.65 million in Q3 2025.
• GAAP Operating Income: $74.71 million (6% margin), compared to an operating loss of $(5.81) million in Q3 2025.
• Non-GAAP Operating Income: $334 million, delivering an operating margin of 28%.
• Diluted EPS: GAAP net income per diluted share was $0.32; non-GAAP net income per diluted share was $0.81.
• Cash Flow & Liquidity: Operating cash flow reached $290 million and free cash flow was $251 million. Cash, cash equivalents, and marketable securities totaled $5.2 billion as of September 30, 2026.

Operating Metrics & Product Innovations

• Large Customer Growth: Reached approximately 4,860 customers with ARR of $100,000 or more, up 20% year-over-year from ~4,060 as of September 30, 2025.
• AI Innovation: Introduced Scout 1.0, the AI Research team's first specialized model designed for production incident investigations, powering Bits Investigation.
• Industry Recognitions: Named a Leader in the 2026 Forrester Wave for AIOps Platforms for the second straight year and recognized as the "Company to Beat" in Gartner's 2026 AI Vendor Race report.

Forward Guidance

• Q4 2026:
  • Revenue: $1.19 billion to $1.20 billion
  • Non-GAAP Operating Income: $280 million to $290 million
  • Non-GAAP Diluted EPS: $0.69 to $0.71 (assuming ~379M diluted shares)
• Full Year 2026:
  • Revenue: $4.515 billion to $4.525 billion
  • Non-GAAP Operating Income: $1.095 billion to $1.105 billion
  • Non-GAAP Diluted EPS: $2.73 to $2.75 (assuming ~375M diluted shares)