Datadog Q2 revenue beats on large customer growth, AI adoption
DDOG•Outlook
- Datadog sees Q3 revenue between $1.135 bln and $1.145 bln
- Company expects Q3 non-GAAP net income per share between $0.63 and $0.65
- Datadog forecasts full-year 2026 revenue between $4.45 bln and $4.47 bln
Overview
- US observability platform's Q2 revenue rose 36% yr/yr, beating analyst expectations
- Adjusted EPS for Q2 beat consensus
- Company saw strong growth in $100k+ ARR customers and launched new AI-powered products
Result drivers
- Larger customer growth - Co said robust growth in $100k+ ARR customers contributed to Q2 results
- AI deployment - Co said customers are building and deploying with AI, using Datadog to observe, secure, and act on AI-enabled solutions, per CEO Olivier Pomel
- Product innovation - Co launched more than 100 new capabilities, including fully autonomous Bits AI and AI Guard, to help customers manage AI and security complexity
