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For the third quarter, Datadog expects revenues between $1.135 billion and $1.145 billion and non-GAAP earnings between 63 cents and 65 cents per share.
The Zacks Consensus Estimate for DDOG's third-quarter revenues is pegged at $1.14 billion, indicating 28.9% year-over-year growth.
The consensus mark for earnings stands at 64 cents per share, suggesting an improvement of 16.4% from the year-ago quarter. The Zacks Consensus Estimate for earnings remains unchanged over the past 30 days.
Datadog surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, delivering an average surprise of 15.39%. In the last reported quarter, the company delivered an earnings surprise of 12.07%.
Let us see how things have shaped up ahead of the upcoming announcement.
Factors Likely to Shape DDOG's Q3 Results
Accelerating artificial intelligence (AI) adoption and cloud consumption are expected to have supported Datadog's revenues in the third quarter of 2026. The company ended the second quarter with more than 750 AI customers, including hyperscalers using its platform for in-house AI labs. Meanwhile, revenue growth from non-AI customers accelerated to the high-20% range from the mid-20% range in the preceding quarter. Enterprises deploying AI workloads increasingly require unified visibility across applications, infrastructure and models. These trends are likely to have driven higher platform usage and strengthened demand for Datadog's observability solutions in the to-be-reported quarter.
Datadog's expanding enterprise footprint and multiproduct adoption are likely to have boosted revenues in the quarter under review. At the end of the second quarter, approximately 4,720 customers generated at least $100,000 in annual recurring revenues, up 23% year over year. Moreover, 58% of customers used four or more products, up from 52% a year earlier, while enterprise new-logo annualized bookings more than doubled. Stronger cross-selling, rising customer commitments and faster ramp-up of new accounts are expected to have supported additional consumption and recurring revenue growth in the third quarter.
Continued product innovation is expected to have strengthened Datadog's competitive position and upselling opportunities in the third quarter. At its June DASH event, the company introduced more than 100 capabilities, including autonomous Bits AI for incident detection, investigation and remediation, AI Guard for agent security, and Bring Your Own Cloud for customer-controlled data environments. It also made Bits Code, Bits Chat and Bits Agent Builder generally available. These enhancements broaden Datadog's relevance across DevOps, security and AI operations, likely supporting product adoption and deeper customer engagement in the quarter under review.
However, reduced consumption by Datadog's largest customer is expected to have weighed on third-quarter revenue momentum. The customer, a leading AI company using 17 Datadog products, renewed a nine-figure agreement but began reducing usage in the third quarter of 2026. Datadog incorporated the decline into its outlook. Its AI-native cohort contributed high-single-digit percentage points to companywide year-over-year revenue growth in the second quarter, highlighting sensitivity to spending shifts among major AI accounts. The usage pullback is likely to have offset some benefits from broader demand and constrained growth in the quarter under review.
What Our Model Says About DDOG Stock
Our proven model does not conclusively predict an earnings beat for Datadog this time around. According to the Zacks model, 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. However, this is not the case here, as you can see below.
DDOG currently has an Earnings ESP of -0.28% and a Zacks Rank #3, according to Zacks' latest accessible pre-earnings coverage. Although a negative Earnings ESP does not necessarily indicate an earnings miss, this combination makes it difficult to conclusively predict an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
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:
Analog Devices, Inc. (ADI - Free Report) presently has an Earnings ESP of +2.23% and a Zacks Rank #2. ADI’s shares have surged 53.8% year to date. ADI is set to report its third-quarter 2026 results on Nov. 24. You can see the complete list of today’s Zacks #1 Rank stocks here.
Microchip Technology (MCHP - Free Report) has an Earnings ESP of +3.31% and a Zacks Rank #2 at present. MCHP’s shares have gained 21.4% year to date. MCHP is set to report its second-quarter fiscal 2027 results on Nov. 5, 2026.
NVIDIA Corporation (NVDA - Free Report) currently has an Earnings ESP of +3.46% and carries a Zacks Rank #2. NVDA’s shares have returned 9.8% year to date. NVDA is set to report its third-quarter fiscal 2027 results on Nov. 17, 2026.
View the Zacks #1 Rank List
Image: Shutterstock
Datadog Before Q3 Earnings: What's in the Cards for the Stock?
Key Takeaways
Datadog, Inc. (DDOG - Free Report) is scheduled to report its third-quarter 2026 results before the market opens on Nov. 4.
For the third quarter, Datadog expects revenues between $1.135 billion and $1.145 billion and non-GAAP earnings between 63 cents and 65 cents per share.
The Zacks Consensus Estimate for DDOG's third-quarter revenues is pegged at $1.14 billion, indicating 28.9% year-over-year growth.
The consensus mark for earnings stands at 64 cents per share, suggesting an improvement of 16.4% from the year-ago quarter. The Zacks Consensus Estimate for earnings remains unchanged over the past 30 days.
Datadog, Inc. Price and EPS Surprise
Datadog, Inc. price-eps-surprise | Datadog, Inc. Quote
Datadog surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, delivering an average surprise of 15.39%. In the last reported quarter, the company delivered an earnings surprise of 12.07%.
Let us see how things have shaped up ahead of the upcoming announcement.
Factors Likely to Shape DDOG's Q3 Results
Accelerating artificial intelligence (AI) adoption and cloud consumption are expected to have supported Datadog's revenues in the third quarter of 2026. The company ended the second quarter with more than 750 AI customers, including hyperscalers using its platform for in-house AI labs. Meanwhile, revenue growth from non-AI customers accelerated to the high-20% range from the mid-20% range in the preceding quarter. Enterprises deploying AI workloads increasingly require unified visibility across applications, infrastructure and models. These trends are likely to have driven higher platform usage and strengthened demand for Datadog's observability solutions in the to-be-reported quarter.
Datadog's expanding enterprise footprint and multiproduct adoption are likely to have boosted revenues in the quarter under review. At the end of the second quarter, approximately 4,720 customers generated at least $100,000 in annual recurring revenues, up 23% year over year. Moreover, 58% of customers used four or more products, up from 52% a year earlier, while enterprise new-logo annualized bookings more than doubled. Stronger cross-selling, rising customer commitments and faster ramp-up of new accounts are expected to have supported additional consumption and recurring revenue growth in the third quarter.
Continued product innovation is expected to have strengthened Datadog's competitive position and upselling opportunities in the third quarter. At its June DASH event, the company introduced more than 100 capabilities, including autonomous Bits AI for incident detection, investigation and remediation, AI Guard for agent security, and Bring Your Own Cloud for customer-controlled data environments. It also made Bits Code, Bits Chat and Bits Agent Builder generally available. These enhancements broaden Datadog's relevance across DevOps, security and AI operations, likely supporting product adoption and deeper customer engagement in the quarter under review.
However, reduced consumption by Datadog's largest customer is expected to have weighed on third-quarter revenue momentum. The customer, a leading AI company using 17 Datadog products, renewed a nine-figure agreement but began reducing usage in the third quarter of 2026. Datadog incorporated the decline into its outlook. Its AI-native cohort contributed high-single-digit percentage points to companywide year-over-year revenue growth in the second quarter, highlighting sensitivity to spending shifts among major AI accounts. The usage pullback is likely to have offset some benefits from broader demand and constrained growth in the quarter under review.
What Our Model Says About DDOG Stock
Our proven model does not conclusively predict an earnings beat for Datadog this time around. According to the Zacks model, 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. However, this is not the case here, as you can see below.
DDOG currently has an Earnings ESP of -0.28% and a Zacks Rank #3, according to Zacks' latest accessible pre-earnings coverage. Although a negative Earnings ESP does not necessarily indicate an earnings miss, this combination makes it difficult to conclusively predict an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
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:
Analog Devices, Inc. (ADI - Free Report) presently has an Earnings ESP of +2.23% and a Zacks Rank #2. ADI’s shares have surged 53.8% year to date. ADI is set to report its third-quarter 2026 results on Nov. 24. You can see the complete list of today’s Zacks #1 Rank stocks here.
Microchip Technology (MCHP - Free Report) has an Earnings ESP of +3.31% and a Zacks Rank #2 at present. MCHP’s shares have gained 21.4% year to date. MCHP is set to report its second-quarter fiscal 2027 results on Nov. 5, 2026.
NVIDIA Corporation (NVDA - Free Report) currently has an Earnings ESP of +3.46% and carries a Zacks Rank #2. NVDA’s shares have returned 9.8% year to date. NVDA is set to report its third-quarter fiscal 2027 results on Nov. 17, 2026.