DDOG US S&P 500NASDAQ-100Russell 1000 Earnings call · transcribed from the recording
Datadog (DDOG) · Q3 2026 results and valuation
Share price: $184.38 · 2026-11-11
Datadog provides a SaaS platform for infrastructure monitoring, application performance monitoring, log management, and cloud security. The company serves organizations of all sizes across various industries by providing unified observability and security for their technology stacks. It operates in the IT operations management, security software, and application development markets. Source: 10-K annual report (2026-02-18)
Results Q3 2026 vs Q2 2026 · previous quarter · published 4 Nov 2026 and 6 Aug 2026
Net income up 165.5% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+165.5%
Net income vs Q2 2026
Net income 118.3M vs 44.6M
Revenue +6.7%
Against the same quarter last year (Q3 2025) it is +249.2%, so it is not just seasonal.
2 · How management spoke
Typical
Less upbeat than 52% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Figure
61% of Datadog's customers now use four or more products, up from 54% a year ago.
Valuation
Is Datadog undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 20.0% growth a year (3-year revenue growth), the model's fair value is $146.64 a share — the stock trades 26% above it. Today's price assumes 23.4% growth a year.
Current price
$184.38
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+23.4% for 10 yrs
Fair value / share
$146.64
Buy below
$109.98
Price vs fair value
Overvalued 26%
Price vs buy-below price
Overvalued 68%
Read between the lines
-
Figure
Regarding Datadog's Q3 financial performance and key metrics, revenue was $1.2 billion, an increase of 35% year-over-year and above the high end...
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Last period
Datadog generated free cash flow of $279 million with a free cash flow margin of 25%.
Source quote
“And we generated free cash flow of $279 million with a free cash flow margin of 25%. These customers generated about 91% of our ARR. Turning to product adoption.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“I want to congratulate our public sector team on this milestone win, which was a direct result of for investment in government, and the federal high certification we secured earlier...”
“One milestone we're very proud of, our infrastructure monitoring suite of products now exceeds $2 billion in AR, growing in the mid-30% year over year.”
“Revenue growth from our non-AI customers accelerated for the fifth straight quarter and was in the high 20% year-over-year, up to about one percentage point from last quarter and up...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.20B | 1.12B | +6.7% | 885.7M | +35.2% |
| Gross profit | 959.9M | 881.3M | +8.9% | 709.2M | +35.4% |
| Operating income | 74.7M | 5.5M | +1269.5% | -5.8M | Turned profit |
| Net income | 118.3M | 44.6M | +165.5% | 33.9M | +249.2% |
| EPS | 0.32 | 0.12 | +166.7% | 0.10 | +220.0% |
| P/E today 248.7 | 380.3 | 520.7 | −140.4 | 459.4 | −79.1 |
Topics
Most discussed now
- There's a strong need for tooling, which is something Datadog provides, it's a great opportunity for it, and it sees...
- This is why Datadog can be a bit surprised when it sees a customer renew early just a few quarters...
- Datadog has many more customers, many more large customers into that cohort.
- Long-term, Datadog expects both to monetize this directly as it does today and to drive broader adoption of the platform...
- The model Datadog has chosen is a model where it stays fairly close to inference costs there so that it can...
Faded since Q2 2026
- Fading This 750 strong customer group includes a broad range of AI start-ups as it has in the past, but now...
- Fading Datadog also achieved strong new logo dollar bookings with particular strength in enterprise, where new logo annualized bookings more…
- Fading You can have Bits AI manage your monitoring and manage your detection for you.
- Fading Like there's all sorts of different use cases that Datadog built into it that broaden the surface of contact, and...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
Datadog reported second-quarter revenue of $1.12 billion, up 36% year-over-year, with the number of customers with over $100,000 ARR increasing from 3,850 to 4,720.
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
Datadog reported first-quarter revenue of $1,006 million, up 32% year-over-year, with operating cash flow of $335 million and free cash flow of $289 million.
- Change to shareholder rights; Articles or bylaws amended; Shareholder vote results; Other events · SEC 8-K
Stockholders approved the proposal to redomicile the Company from Delaware to Nevada with 332,195,858 votes for, 199,605,477 votes against, and 351,779 abstentions.
- Director or officer change · SEC 8-K
Datadog, Inc. expanded its Board to eleven members and appointed Dominic Phillips as a Class II director, whose initial restricted stock unit grant was increased from $400,000 to $600,000.
- Results of operations · SEC 8-K
Datadog reported fourth-quarter revenue of $953 million, up 29% year-over-year, and fiscal year 2025 revenue of $3.43 billion, an increase of 28% year-over-year.
- Results of operations · SEC 8-K
Datadog reported third-quarter revenue of $886 million, up 28% year-over-year, with the number of customers with over $100,000 ARR increasing from 3,490 to 4,060.