Datadog, Inc. Q3 2026 Earnings Recap

Datadog shares fell 14.4% after earnings, despite revenue topping the company’s guidance range. The likely concern is that investors focused on forward expectations: the transcript cites healthy demand but provides no specific Q4 or full-year outlook figures, making it difficult to assess whether the pace of growth can be sustained.

Key Takeaways

• Q3 revenue was $1.2 billion, up 35% year over year and above the high end of Datadog’s guidance range.
• Revenue growth from non-AI customers accelerated for a fifth consecutive quarter, reaching the high 20s percent year over year—about 1 percentage point above the prior quarter.
• Free cash flow was $251 million, a 21% margin.
• Platform adoption broadened: 61% of customers used at least four products, versus 54% a year ago; 41% used at least six, versus 31%.
• Infrastructure monitoring exceeded $2 billion in ARR, growing in the mid-30s percent year over year; Datadog also said its monitored GPU devices increased eightfold so far this year.