Datadog posts Q3 2026 earnings beat and revenue surge but shares tumble
+4 new sources since this summary was written
Datadog reported third‑quarter 2026 revenue of $1.20 billion, up 35% year‑over‑year, and non‑GAAP EPS of $0.81, beating consensus estimates by $0.17. The company raised its full‑year revenue outlook to $4.515‑$4.525 billion and FY 2026 EPS guidance to $2.73‑$2.75. Despite the strong results, the stock fell sharply in pre‑market trading, dropping as much as 19% after the release.
Why it matters
Investors see a disconnect between the earnings beat and the share price decline, as the guidance for Q4 revenue of $1.19‑$1.20 billion was viewed as below sequential growth expectations, prompting a sell‑off. The raised full‑year outlook may support a longer‑term upside if the company sustains growth.
Key facts
- 1Q3 2026 revenue was $1.20 billion, up 35% YoY tradingview.com
- 2Non‑GAAP EPS for Q3 was $0.81, beating estimates by $0.17 investing.com
- 3Full‑year 2026 revenue guidance was raised to $4.515‑$4.525 billion investing.com
- 4Full‑year 2026 EPS guidance was set at $2.73‑$2.75 investing.com
- 5Q4 2026 revenue guidance was $1.19‑$1.20 billion finance.yahoo.com
- 6Shares fell up to 19% in pre‑market trading after the earnings release investing.com
Summary written by AlphAI AI Desk from 7 of 7 sources. Not investment advice. Figures are as stated by the linked sources.