Datadog Tops Revenue Estimates at $1.20 Billion; Adjusted EPS Beats at $0.81

Datadog, Inc. (Nasdaq: DDOG) reported third-quarter revenue of $1.20 billion, above the $1.15 billion analysts expected, and non-GAAP diluted EPS of $0.81 against the $0.64 consensus estimate, according to an 8-K filed Wednesday, Nov. 4, 2026. Revenue rose 35% from $885.7 million a year earlier. GAAP diluted EPS was $0.32, compared with $0.10 a year earlier.

Revenue and customers

The company said it had about 4,860 customers with annual recurring revenue of $100,000 or more as of Sept. 30, up 20% from about 4,060 a year earlier. Olivier Pomel, co-founder and chief executive, said customers are scaling their digital operations and their use of AI.

Datadog also introduced Scout 1.0, its first specialized model, which now powers Bits Investigation. The release says the model is in preview and achieves frontier-model performance at a fraction of the inference cost.

Profit and cash

GAAP operating income was $75 million, a 6% margin, compared with a loss of $5.8 million a year earlier. Non-GAAP operating income was $334 million, a 28% margin. Operating cash flow was $290 million and free cash flow was $251 million. Cash, cash equivalents and marketable securities totaled $5.2 billion as of Sept. 30.

Outlook

For the fourth quarter, Datadog guided to revenue of $1.19 billion to $1.20 billion and non-GAAP EPS of $0.69 to $0.71. Analysts expected fourth-quarter revenue of $1.20 billion and EPS of $0.64.

For full-year 2026, the company guided to revenue of $4.515 billion to $4.525 billion and non-GAAP EPS of $2.73 to $2.75, compared with analyst estimates of $4.47 billion and $2.53. The company did not reconcile its non-GAAP guidance to GAAP measures.