Datadog Q4 Revenue Soars 29% to $953M, Guides 2026 Revenue Near $4.1B
Datadog’s 2025 revenue rose 27% to $3.4 billion and Q4 revenue climbed 29% to $953 million, while FY net income declined 41% to $107.7 million and Q4 profit increased 2% to $46.6 million. Shares jumped 13.7% after management guided Q1 revenue of $951–961 million and full-year 2026 revenue of $4.06–4.1 billion with EPS of $2.08–2.16.
1. Strong Q4 and FY25 performance
Datadog reported full-year 2025 revenue of $3.4 billion, up 27% year-on-year, driven by cloud services and AI analytics adoption. Fourth-quarter sales rose 29% to $953 million, while net income for the year fell 41% to $107.7 million and Q4 profit edged up 2% to $46.6 million.
2. Stock reaction surges 13.7%
The stock jumped 13.7% following the earnings release as investors reacted to the revenue beat and profit resilience. Market enthusiasm reflected confidence in Datadog’s expansion in observability, security and software delivery solutions.
3. Conservative guidance for 2026
Management guided first-quarter revenue of $951–961 million and full-year 2026 revenue of $4.06–4.1 billion with EPS of $2.08–2.16, projecting steady growth. Analysts note guidance appears conservative against an 18.5%–19.6% growth target, while some firms reiterated Buy ratings citing AI-driven deal wins and customer momentum.