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Datadog Slides Despite Beat and Raised Guidance

Datadog beat third-quarter revenue and earnings forecasts and raised its full-year outlook, but a fourth-quarter revenue guide implying little or no growth in the third quarter sent shares sharply lower today.

Datadog (NASDAQ: DDOG), the New York software company whose cloud platform monitors applications, infrastructure and AI workloads, was down 14% today despite beating third-quarter forecasts. Its fourth-quarter revenue guidance was in line with expectations rather than ahead of them.

The shares were at $188.70 at 8.27pm UK time, a delayed quote with the Nasdaq session still open. That is 14.43% below yesterday’s close of $220.52, on a day range of $186.51 to $207.74 and volume of 10.28m shares.

DDOG.US

Datadog’s results release showed third-quarter revenue of $1.197bn, up 35% from $885.651m a year earlier. Consensus was about $1.14bn. Non-GAAP earnings per share, which strip out certain accounting items, were $0.81 against $0.64 expected and $0.55 a year ago.

The fourth-quarter revenue guide is $1.19bn to $1.20bn, in line with consensus of about $1.20bn. The top end is only about $3m above the third quarter’s figure, so revenue is guided flat sequentially, meaning quarter on quarter. Full-year revenue guidance rose to $4.515bn to $4.525bn.

Line chart of Datadog daily closing share price from August to November 2026, falling from about $278 on 28 October to $188.70 intraday on 4 November.
Datadog daily closes, August to 3 November, plus the 4 November intraday quote (8.27pm UK time).

The slide began before the results. Datadog closed at $278.41 last Wednesday and has lost about 32% since, including falls of 11.5% on Friday and 8.1% on Monday.

Chief executive Olivier Pomel, the company’s co-founder, pointed to customer demand.

We are seeing strong adoption across our platform as customers scale their digital operations and use of AI.

Olivier Pomel, co-founder and CEO, Datadog

Customers with at least $100,000 in annual recurring revenue reached 4,860, up 20%. Free cash flow was $251m, a 21% margin against 24% a year ago. TD Cowen analyst Andrew Sherman called the fourth-quarter outlook “just in line”.

For UK holders of DDOG through an ISA or SIPP, or traders using CFDs and spread bets, the stock is priced in dollars, so sterling moves add to or subtract from the result. The US session runs until 9pm UK time.

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