Datadog Q4 Revenues Climb 29% to $953M, Projects 18–20% FY26 Growth
Datadog posted Q4 2025 revenues of $953 million, up 29% year-over-year, and full-year bookings reached a record $1.63 billion, lifting remaining performance obligations 52% to $3.46 billion. For fiscal 2026, Datadog forecast revenues of $4.06‒4.10 billion (18‒20% growth) after reporting broad-based demand beyond AI-native clients.
1. Strong Q4 2025 Performance
Datadog delivered Q4 2025 revenues of $953 million, marking a 29% year-over-year increase that surpassed its guidance range. Full-year bookings surged 37% to $1.63 billion, while remaining performance obligations grew 52% to $3.46 billion, driven by an uptick in multiyear enterprise contracts.
2. Broad Enterprise Adoption
By December 2025, 48% of the Fortune 500 were Datadog customers despite a median ARR below $500,000, underscoring significant upsell potential. Product stickiness is rising, with 84% of clients using two or more products and 55% using four or more.
3. AI-Native Customer Momentum
Datadog counts 14 of the top 20 AI-native firms as customers and has added approximately 650 such companies growing at above-average rates. Usage of its AI observability tools exceeded 1,000 customers, with tool calls rising elevenfold and platform usage up tenfold over six months.
4. Fiscal 2026 Outlook & Valuation
Management guided to FY26 revenues of $4.06–4.10 billion (18–20% growth) and Q1 growth of 25–26%, setting a high bar for the broader enterprise ramp. Shares trade at a forward 12-month price-to-sales ratio of 9.91x, more than double the industry average, reflecting premium valuation.