Datadog Revenue Grows 35%. Can Its Customer Growth Sustain the Momentum?

What did Datadog report for Q3 2026?

For the quarter ended September 30, 2026, Datadog reported $1.20 billion in revenue, up 35% year over year, with GAAP net income of $118.3 million and diluted GAAP earnings of $0.32 per share.

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Why does Datadog's customer growth matter?

Customers generating at least $100,000 in annual recurring revenue increased 20% year over year to approximately 4,860, indicating broader adoption among higher-spending customers and supporting the company's revenue expansion.

Is Datadog converting its growth into cash?

Yes. Operating cash flow reached $290 million and free cash flow reached $251 million in Q3, providing internally generated funds for investment and operations.

What does the growth mean for Datadog stock?

Datadog trades on Nasdaq under DDOG, and sustained revenue growth, positive GAAP operating income and free cash flow can strengthen its investment case; however, the results alone do not establish whether the shares are undervalued.

What is Datadog forecasting for the rest of 2026?

Management expects Q4 revenue of $1.19 billion to $1.20 billion and full-year 2026 revenue of $4.515 billion to $4.525 billion, making delivery against that guidance an important next measure of growth.