Datadog Q4 Revenue Guidance $912m–$916m, Price Target Cut to $150
RBC Capital reaffirmed an Outperform rating on Datadog while cutting its price target to $150, as shares plunged 7.28% to $119.66. The company forecasts Q4 revenues of $912–$916 million (24% year-over-year) and EPS of $0.55, backed by its Bits AI SRE launch and expanded AWS monitoring features.
1. RBC Capital Rating and Target Cut
RBC Capital maintained its Outperform rating on Datadog but lowered its price target from $175 to $150, reflecting tempered bullishness despite underlying growth momentum. This adjustment coincided with a 7.28% one-day share decline to $119.66, underscoring investor caution ahead of Q4 results.
2. Q4 2025 Revenue and EPS Guidance
Datadog forecasted fourth-quarter revenues between $912 million and $916 million, implying 24% year-over-year growth, and projected non-GAAP EPS of $0.55. These targets sit near consensus estimates and will be reported on February 10.
3. New Product Launches and AWS Partnership
During the quarter, Datadog introduced Bits AI SRE, its first AI agent for automated incident investigation, and expanded its AWS collaboration with enhanced AI workload and cloud storage monitoring. Late-quarter previews limited immediate monetization but strengthen the AI roadmap.
4. Stock Performance and Upcoming Earnings
Datadog underperformed the broader market, with shares down over 3% in the past month versus a sector gain of 1.75%. Investors await the Q4 earnings release for confirmation of guidance and assessment of how new product investments will drive consumption.