Datadog Q4 Revenue Climbs 29% to $953M; EPS Beats Forecast
Datadog’s fourth-quarter revenue climbed 29% year-over-year to $953.2 million, surpassing the $916.6 million consensus and driving adjusted EPS of $0.59 versus $0.56 forecasts. The company guided first-quarter revenue of $951–961 million above the $935.4 million estimate and forecast fiscal 2026 revenue of $4.06–4.10 billion, reflecting robust cloud and AI product adoption.
1. Q4 Financial Results
Datadog’s fourth-quarter revenue rose 29% to $953.2 million, beating the $916.6 million estimate, while adjusted EPS of $0.59 topped the $0.56 consensus. Gross margin narrowed by 100 basis points to 81% and operating margin held at 24%, supported by 4,310 customers with ARR over $100,000 and $291 million in free cash flow.
2. Outlook and Guidance
The company projects first-quarter revenue of $951–961 million versus a $935.4 million consensus and adjusted EPS of $0.49–0.51 against $0.53 estimates. Fiscal 2026 revenue is forecast at $4.06–4.10 billion with adjusted EPS of $2.08–2.16, underscoring confidence in sustained cloud migration and AI-driven demand.