Highlights

  • Datadog reports Q4 sales and adjusted EPS above market expectations.
  • Shares rise in a session when major US indices declined.
  • Management cites deal consolidation and multi-product adoption trends.

Datadog Inc. (NASDAQ:DDOG) drew market attention after its fourth-quarter results came in above consensus expectations, prompting a sharp move in the shares during Tuesday’s session even as broader US indices ended lower. The company reported non-GAAP earnings per share of USD 0.59 on revenue of USD 935 million for the quarter. Adjusted EPS exceeded the average analyst estimate by USD 0.04, while revenue was USD 34.8 million above expectations. Year-on-year revenue growth for the period was approximately 29%. The company reported gross profit of USD 776 million, translating to a gross margin of 81.4%, and adjusted operating income of USD 230 million, representing a 24% margin.

Session move and index backdrop
Datadog shares advanced 13.74% in the session, contrasting with declines of 0.4% in the S&P 500 and 0.6% in the Nasdaq Composite on the same day. The share move followed the earnings release and updated outlook provided ahead of the market open.

Forward guidance outlined
For the current quarter, Datadog guided revenue between USD 951 million and USD 961 million, which implies year-on-year growth of 25.5% at the midpoint. Full-year revenue guidance was set between USD 4.06 billion and USD 4.10 billion, implying approximately 19% growth at the midpoint of the range.

Consolidation and multi-tool usage trends
Management highlighted deal activity linked to tool consolidation and broader product adoption across customers. Examples discussed included large transactions involving consolidation of multiple tools into Datadog’s platform, multi-product standardisation by enterprise customers, and renewals that expanded annualised commitments. Commentary also referenced demand associated with AI-related workloads and usage across customer deployments.

Business Overview
Datadog provides a cloud-based monitoring and observability platform used to monitor, troubleshoot, and secure applications and infrastructure. Its software collects and analyses metrics, traces, and logs from servers, containers, cloud services, and applications. The product portfolio includes infrastructure monitoring, application performance monitoring, log management, real user monitoring, synthetic monitoring, network performance monitoring, and security-focused offerings such as security monitoring and cloud SIEM.

Latest closing price (as of February 10, 2026):Datadog Inc. (NASDAQ: DDOG) closed at USD 129.67, up USD 15.66 (13.74%).