Datadog, Inc. (DDOG): verified earnings note

•Non-GAAP operating income was $334 million; non-GAAP operating margin was 28%.

"Datadog delivered a strong third quarter, with 35% year-over-year revenue growth, $290 million in operating cash flow, and $251 million in free cash flow," said Olivier Pomel, co-founder and CEO of Datadog. "We are seeing strong adoption across our platform as customers scale their digital operations and use of AI."

•Introduced Scout 1.0, Datadog AI Research team's first specialized model for investigating production issues. Scout (in Preview) now powers Bits Investigation and achieves frontier-model performance at a fraction of the inference cost-enabling more frequent, earlier investigations that reduce on-call burden and accelerate incident response.

◦Non-GAAP operating income between $280 million and $290 million.

◦Revenue between $4.515 billion and $4.525 billion.

◦Non-GAAP net income per share between $2.73 and $2.75, assuming approximately 375 million weighted average diluted shares outstanding.

◦Revenue between $1.19 billion and $1.20 billion.

◦Non-GAAP net income per share between $0.69 and $0.71, assuming approximately 379 million weighted average diluted shares outstanding.

•As of September 30, 2026, we had about 4,860 customers with ARR of $100,000 or more, an increase of 20% from about 4,060 as of September 30, 2025.

•Non-GAAP operating income was $257 million; non-GAAP operating margin was 23%.

•As of June 30, 2026, we had about 4,720 customers with ARR of $100,000 or more, an increase of 23% from about 3,850 as of June 30, 2025.

"Datadog delivered a strong quarter, with 36% year-over-year revenue growth, $316 million in operating cash flow, and $279 million in free cash flow," said Olivier Pomel, co-founder and CEO of Datadog. "Our customers are building and deploying with AI, and they are using the Datadog platform to observe, secure, and act on their AI-enabled solutions."

"Datadog delivered a strong quarter, with 36% year-over-year revenue growth, $316 million in operating cash flow, and $279 million in free cash flow," said Olivier Pomel, co-founder and CEO of Datadog. "Our customers are building and deploying with AI, and they are using the Datadog platform to observe, secure, and act on their AI-enabled solutions."

◦Revenue between $1.135 billion and $1.145 billion.

◦Revenue between $4.45 billion and $4.47 billion.

◦Non-GAAP net income per share between $0.63 and $0.65, assuming approximately 378 million weighted average diluted shares outstanding.

◦Revenue between $1.135 billion and $1.145 billion.

◦Non-GAAP operating income between $260 million and $270 million.

Launched AI-powered Bits Code, Bits Chat, and Bits Agent Builder for general availability

Three Months EndedJune 30, | Six Months EndedJune 30, 2026 | 2025 | 2026 | 2025 Revenue | $ | 1,121,454 | $ | 826,760 | $ | 2,127,880 | $ | 1,588,313 Cost of revenue (1)(2)(3) | 240,113 | 165,978 | 449,341 | 323,606 Gross profit | 881,341 | 660,782 | 1,678,539 | 1,264,707 Operating expenses: Research and development (1)(3) | 477,968 | 387,482 | 913,266 | 728,543 Sales and marketing (1)(2)(3) | 311,519 | 239,026 | 591,342 | 453,317 General and administrative (1)(3)(4) | 86,399 | 69,774 | 161,149 | 130,767 Total operating expenses | 875,886 | 696,282 | 1,665,757 | 1,312,627 Operating income (loss) | 5,455 | (35,500) | 12,782 | (47,920) Other income: Interest expense (5) | (3,255) | (3,075) | (6,374) | (6,038) Interest income and other income, net | 49,533 | 44,663 | 104,255 | 91,842 Other income, net | 46,278 | 41,588 | 97,881 | 85,804 Income before provision for income taxes | 51,733 | 6,088 | 110,663 | 37,884 Provision for income taxes | 7,175 | 3,441 | 13,531 | 10,595 Net income | $ | 44,558 | $ | 2,647 | $ | 97,132 | $ | 27,289 Net income per share - basic | $ | 0.13 | $ | 0.01 | $ | 0.27 | $ | 0.08 Net income per share - diluted | $ | 0.12 | $ | 0.01 | $ | 0.27 | $ | 0.08 Weighted average shares used in calculating net income per share: Basic | 356,253 | 346,185 | 354,771 | 344,650 Diluted | 371,023 | 358,725 | 368,271 | 361,289

•Non-GAAP operating income was $223 million; non-GAAP operating margin was 22%.

"Datadog executed to a strong quarter, with 32% year-over-year revenue growth, $335 million in operating cash flow, and $289 million in free cash flow," said Olivier Pomel, co-founder and CEO of Datadog. "We are helping customers of all sizes and industries deploy modern, cloud-based, AI-enabled solutions."

◦Revenue between $1.07 billion and $1.08 billion.

◦Non-GAAP operating income between $225 million and $235 million.

◦Revenue between $4.30 billion and $4.34 billion.

Launched MCP Server, Bits AI Security Agent, GPU Monitoring, and Experiments for general availability

◦Revenue between $1.07 billion and $1.08 billion.

•As of March 31, 2026, we had about 4,550 customers with ARR of $100,000 or more, an increase of 21% from about 3,770 as of March 31, 2025.

Pomel added, "We're using AI to build rapidly across the Datadog platform, and are excited to showcase our latest innovations at our DASH user conference in June."

◦Non-GAAP operating income between $225 million and $235 million.

•Non-GAAP operating income was $230 million; non-GAAP operating margin was 24%.

•GAAP operating income was $9 million; GAAP operating margin was 1%.

"We are pleased with our strong execution in fiscal year 2025, with 28% year-over-year revenue growth, $1,050 million in operating cash flow, and $915 million in free cash flow," said Olivier Pomel, co-founder and CEO of Datadog. "During 2025, we delivered over 400 new features and capabilities to help our customers as they migrate to the cloud and begin to deploy to production with next-gen AI."

◦Revenue between $951 million and $961 million.

◦Revenue between $4.06 billion and $4.10 billion.

◦Non-GAAP operating income between $840 million and $880 million.

•As of December 31, 2025, we had 603 customers with ARR of $1 million or more, an increase of 31% from 462 as of December 31, 2024. As of December 31, 2025, we had about 4,310 customers with ARR of $100,000 or more, an increase of 19% from 3,610 as of December 31, 2024.

◦Revenue between $951 million and $961 million.

◦Non-GAAP operating income between $195 million and $205 million.

•Launched Bits AI SRE, an AI on-call agent that autonomously investigates alerts using telemetry and organizational context to surface actionable root cause in minutes and help engineers resolve incidents faster.

•As of December 31, 2025, we had 603 customers with ARR of $1 million or more, an increase of 31% from 462 as of December 31, 2024. As of December 31, 2025, we had about 4,310 customers with ARR of $100,000 or more, an increase of 19% from 3,610 as of December 31, 2024.

•Non-GAAP operating income was $207 million; non-GAAP operating margin was 23%.

•As of September 30, 2025, we had about 4,060 customers with ARR of $100,000 or more, an increase of 16% from about 3,490 as of September 30, 2024.

"Datadog had a strong third quarter, with 28% year-over-year revenue growth, $251 million in operating cash flow, and $214 million in free cash flow," said Olivier Pomel, co-founder and CEO of Datadog.

Pomel added, "The Datadog R&D team is innovating rapidly to help our customers solve problems in the AI space. Recent announcements include our full stack of AI Observability and Security products, Bits AI Agents for SRE, Developers, and Security, Datadog MCP Server, and our time-series foundation model TOTO."

◦Revenue between $912 million and $916 million.

◦Non-GAAP operating income between $216 million and $220 million.

◦Revenue between $3.386 billion and $3.390 billion.

◦Revenue between $912 million and $916 million.

◦Non-GAAP operating income between $216 million and $220 million.

Pomel added, "The Datadog R&D team is innovating rapidly to help our customers solve problems in the AI space. Recent announcements include our full stack of AI Observability and Security products, Bits AI Agents for SRE, Developers, and Security, Datadog MCP Server, and our time-series foundation model TOTO."

Robust growth of larger customers, with about 4,060 $100k+ ARR customers, up from about 3,490 a year ago