56% Upside for Datadog? Canaccord Genuity Thinks So, and Here’s How

Datadog (DDOG) stock dropped 34% in a week due to a software sector selloff and a flat Q4 outlook. The company reported Q3 revenue of $1.2B, up 35%, and adjusted EPS of $0.81, beating estimates. However, its Q4 guidance was roughly flat, partly due to a large AI customer paying only its minimum commitment. Analysts remain divided on the stock's outlook.

Datadog (DDOG) reported Q3 2026 non-GAAP EPS of $0.81, up 47.3% Y/Y, and revenue of $1.2B, up 35.2% Y/Y. Both exceeded estimates. Customer base grew 4.7% Y/Y to 33,500. AI customers increased to 850. Q4 revenue guidance is $1.19B-$1.20B, implying 25%-26% Y/Y growth. Non-GAAP EPS guidance for Q4 is $0.69-$0.71.

Datadog, Rapid7, and Fastly reported Q3 earnings. Datadog's revenue rose 35% YoY to $1.2B, but shares fell 14% on cautious AI customer outlook. Rapid7's shares jumped 18% after beating EPS estimates. Fastly's revenue hit $190.2M, up 20% YoY, but shares dropped 14%. All three companies raised full-year guidance.

Datadog (DDOG) fell 14.4% to $188.72 after guiding Q4 revenue flat from Q3, citing a large AI customer's reduced usage. Needham reiterated its Buy rating and $300 target, 59% above the close, citing long-term growth potential and raised 2026 earnings guidance.

Datadog (DDOG) reported Q3 2026 revenue of $1.2B, up 35.2% YoY, and EPS of $0.81, beating estimates. Key metrics: $3.85B in remaining performance obligations, 33,500 customers, and 4,860 customers spending >$100k ARR. Shares down 20.8% over the past month.

Datadog (DDOG) fell 14% on cautious Q3 outlook tied to one large AI customer, despite beating earnings and revenue estimates. Rapid7 (RPD) rose 18% after reporting Q3 results with higher adjusted earnings and adjusted operating income. Fastly (FSLY) slid 14% after hours despite beating Q3 forecasts and raising full-year guidance.