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For the first quarter of 2026, Datadog projected revenues between $951 million and $961 million, non-GAAP operating income in the $195-$205 million range, and non-GAAP net income per diluted share of 49 to 51 cents, assuming approximately 367 million weighted average diluted shares outstanding for the period.
The Zacks Consensus Estimate for the same is currently pegged at $956.88 million, suggesting 25.65% growth from the year-ago period.
The Zacks Consensus Estimate for earnings has remained unchanged at 50 cents per share over the past 30 days, indicating 8.7% growth from the year-ago period.
Datadog’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 12.8%.
The cloud observability and security platform provider has set the bar high after a robust fourth quarter of 2025, and investors are now focused on whether broad-based AI adoption and platform consolidation can sustain the momentum into 2026.
Management has flagged a deliberately conservative posture, factoring in macro variability and uneven AI-customer ramp patterns. A record bookings backdrop entering the first quarter — including remaining performance obligations of $3.46 billion at year-end 2025, up 52% — provides additional revenue visibility for the period.
The first-quarter print is likely to have reflected the inflection in AI-related usage that management cited following fourth-quarter 2025, supported by deepening multi-product adoption — at the end of 2025, 84% of customers used two or more products and 33% used six or more.
First-quarter 2026 also captured a steady cadence of product launches that should aid bookings momentum. In February, Datadog rolled out Feature Flags into general availability, integrating feature management with APM and RUM telemetry. In March, the company launched its MCP Server, giving AI coding agents secure, real-time access to observability data, and unveiled a faster, broader-data-access version of Bits AI SRE. The late-March general availability of Bits AI Security Analyst within Cloud SIEM further extended the AI agent suite. Strategic moves — including the Sakana AI partnership, the Cohesity collaboration and the appointment of Dominic Phillips to the board — broaden the platform's reach.
That said, headwinds persist. Heavy reinvestment in R&D and go-to-market capacity is expected to have weighed on near-term margins, and concentration in the largest customer continues to introduce variability into the top line. Pricing-elasticity behavior among AI-native customers, consumption-based volatility, and competitive intensity in observability could also shape the quarter, while macro spending caution remains a wildcard.
With the AI-driven growth narrative balanced against margin reinvestment and customer-concentration risks, holding existing positions appears prudent. Investors without exposure may prefer to await the print and a more attractive entry point post-earnings.
Earnings Whispers for DDOG
Our proven model does not conclusively predict an earnings beat for Datadog this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Datadog has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:
Audioeye shares have dropped 23.5% year to date. Audioeye is set to report first-quarter 2026 results on May 12.
NVIDIA (NVDA - Free Report) currently has an Earnings ESP of +0.24% and a Zacks Rank #2. NVDA shares have risen 6.4% year to date. NVDA is set to report first-quarter fiscal 2027 results on May 20.
MKS Inc. (MKSI - Free Report) presently has an Earnings ESP of +5.19% and a Zacks Rank #2.
MKSI shares have surged 74.8% year to date. MKSI is likely to report first-quarter 2026 results on May 6.
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DDOG Gears Up to Report Q1 Earnings: What's in Store for the Stock?
Key Takeaways
Datadog (DDOG - Free Report) is scheduled to release first-quarter 2026 results on May 7.
For the first quarter of 2026, Datadog projected revenues between $951 million and $961 million, non-GAAP operating income in the $195-$205 million range, and non-GAAP net income per diluted share of 49 to 51 cents, assuming approximately 367 million weighted average diluted shares outstanding for the period.
The Zacks Consensus Estimate for the same is currently pegged at $956.88 million, suggesting 25.65% growth from the year-ago period.
The Zacks Consensus Estimate for earnings has remained unchanged at 50 cents per share over the past 30 days, indicating 8.7% growth from the year-ago period.
Datadog’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 12.8%.
Datadog, Inc. Price and EPS Surprise
Datadog, Inc. price-eps-surprise | Datadog, Inc. Quote
Factors to Consider Ahead of DDOG’s Q1 Results
The cloud observability and security platform provider has set the bar high after a robust fourth quarter of 2025, and investors are now focused on whether broad-based AI adoption and platform consolidation can sustain the momentum into 2026.
Management has flagged a deliberately conservative posture, factoring in macro variability and uneven AI-customer ramp patterns. A record bookings backdrop entering the first quarter — including remaining performance obligations of $3.46 billion at year-end 2025, up 52% — provides additional revenue visibility for the period.
The first-quarter print is likely to have reflected the inflection in AI-related usage that management cited following fourth-quarter 2025, supported by deepening multi-product adoption — at the end of 2025, 84% of customers used two or more products and 33% used six or more.
First-quarter 2026 also captured a steady cadence of product launches that should aid bookings momentum. In February, Datadog rolled out Feature Flags into general availability, integrating feature management with APM and RUM telemetry. In March, the company launched its MCP Server, giving AI coding agents secure, real-time access to observability data, and unveiled a faster, broader-data-access version of Bits AI SRE. The late-March general availability of Bits AI Security Analyst within Cloud SIEM further extended the AI agent suite. Strategic moves — including the Sakana AI partnership, the Cohesity collaboration and the appointment of Dominic Phillips to the board — broaden the platform's reach.
That said, headwinds persist. Heavy reinvestment in R&D and go-to-market capacity is expected to have weighed on near-term margins, and concentration in the largest customer continues to introduce variability into the top line. Pricing-elasticity behavior among AI-native customers, consumption-based volatility, and competitive intensity in observability could also shape the quarter, while macro spending caution remains a wildcard.
With the AI-driven growth narrative balanced against margin reinvestment and customer-concentration risks, holding existing positions appears prudent. Investors without exposure may prefer to await the print and a more attractive entry point post-earnings.
Earnings Whispers for DDOG
Our proven model does not conclusively predict an earnings beat for Datadog this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Datadog has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:
Audioeye (AEYE - Free Report) has an Earnings ESP of +9.62% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Audioeye shares have dropped 23.5% year to date. Audioeye is set to report first-quarter 2026 results on May 12.
NVIDIA (NVDA - Free Report) currently has an Earnings ESP of +0.24% and a Zacks Rank #2. NVDA shares have risen 6.4% year to date. NVDA is set to report first-quarter fiscal 2027 results on May 20.
MKS Inc. (MKSI - Free Report) presently has an Earnings ESP of +5.19% and a Zacks Rank #2.
MKSI shares have surged 74.8% year to date. MKSI is likely to report first-quarter 2026 results on May 6.