Datadog Price Targets Cut to $170–185 Following 28% Q4 Growth
Three analysts cut Datadog’s price targets to $180 (from $220), $185 (from $210) and $170 (from $205) while all maintained outperform and buy ratings. Cuts follow Q4 revenue of $953M at 28% year-over-year growth and updated 2026 guidance just above buyside bogeys.
1. Analyst Price Target Reductions
On February 11, Baird cut its price target to $180 from $220 and maintained an Outperform rating after updating its model following strong Q4 results. Canaccord lowered its target to $185 from $210 the same day, citing 29% quarterly revenue growth and wins with AI-native customers. On February 10, Raymond James trimmed its target to $170 from $205, basing its valuation on a 12× multiple of 2027 sales.
2. Q4 Financial Performance
Datadog’s Q4 revenue reached $953 million versus a $918.2 million consensus, marking 28% year-over-year growth. The company generated $1.05 billion in operating cash flow, $915 million in free cash flow, and delivered over 400 new platform features during 2025 to support cloud migration and AI deployments.
3. Valuation Outlook
Raymond James noted its 12× 2027 sales multiple represents a premium to peers growing above 20% yet a discount to CrowdStrike and Cloudflare. Both Baird and Canaccord emphasized that broad-based acceleration and AI-driven wins underpin a favorable long-term outlook despite lower near-term targets.