Datadog 8-K
EarningsNew guidance
Customer expansion and AI use drive 35% Y/Y revenue growth as Scout 1.0 brings lower-cost investigations to Bits Investigation.
Filed 2026-11-04 07:11 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with Q4 and full-year guidance. Revenue grew 35% Y/Y as customers expanded their digital operations and use of AI.
Q4 revenue guidance midpoint is -0.2% Q/Q from Q3; non-GAAP operating income midpoint is -15% Q/Q from $334M, and non-GAAP EPS is $0.70 vs $0.81. The filing gives no reason for the guided changes.
Developments
- Customers with an annualized revenue run-rate (ARR) of at least $100,000 reached about 4,860 at quarter-end, up 20% Y/Y from about 4,060, indicating growth among larger customers.
- Scout 1.0, Datadog’s first specialized AI model for investigating production issues, now powers Bits Investigation in Preview. Datadog says its performance at a fraction of the inference cost enables more frequent, earlier investigations that can reduce on-call burden and accelerate incident response.
- Datadog was named a Leader in the 2026 Forrester Wave for AIOps Platforms for the second consecutive year, receiving the highest possible scores in 11 criteria, including innovation, roadmap and AI governance.
- Gartner’s 2026 AI Vendor Race report named Datadog the “Company to Beat” for observability platforms.
Key Figures
| Metric | Q3 2026 |
|---|---|
| Revenue | $1.20B, +35% Y/Y |
| GAAP gross margin | 80%, unchanged Y/Y |
| Non-GAAP gross margin | 81%, vs 81% |
| GAAP operating income | $75M, vs $(5.81)M |
| Non-GAAP operating income | $334M, +61% Y/Y |
| Net income | $118M, +249% Y/Y |
| GAAP diluted EPS | $0.32, +220% Y/Y |
| Non-GAAP diluted EPS | $0.81, +47% Y/Y |
| Operating cash flow | $290M, +15% Y/Y |
| Free cash flow | $251M, +17% Y/Y |
- Stock-based compensation of $237M was the largest adjustment between GAAP and non-GAAP results.
- Cash, cash equivalents and marketable securities totaled $5.2B at 9/30/2026.
Against earlier guidance (derived from earlier filings)
| Metric | Period | Earlier guidance | Actual | Result |
|---|---|---|---|---|
| Revenue | Q3 2026 | $1.135B-$1.145B | $1.20B | beat |
| Operating income (non-GAAP) | Q3 2026 | $260M-$270M | $334M | beat |
| Diluted EPS (non-GAAP; ≈378M weighted average diluted shares) | Q3 2026 | $0.63-$0.65 | $0.81 | beat |
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue | Q4 2026 | $1.19B-$1.20B | — | — |
| Non-GAAP operating income | Q4 2026 | $280M-$290M | — | — |
| Non-GAAP net income per share | Q4 2026 | $0.69-$0.71 | — | — |
| Revenue | FY2026 | $4.515B-$4.525B | — | — |
| Non-GAAP operating income | FY2026 | $1.095B-$1.105B | — | — |
| Non-GAAP net income per share | FY2026 | $2.73-$2.75 | — | — |
Guidance changes, derived from earlier filings
| Metric | Period | Earlier guidance | Guidance now | Change |
|---|---|---|---|---|
| Revenue | FY2026 | $4.45B-$4.47B | $4.515B-$4.525B | raised |
| Non-GAAP operating income | FY2026 | $1.01B-$1.03B | $1.095B-$1.105B | raised |
| Non-GAAP net income per share | FY2026 | $2.50-$2.54 | $2.73-$2.75 | raised |
The summary is written by an AI model reading the filing.
Model 005 · prompt v175 · 2026-11-04 15:35:51Z