$DDOG · Datadog, Inc.
Datadog filed its 10-Q for the quarter ended September 30, 2026. Revenue grew 35.2% YoY to $1.197B, gross margin was 80.2%, and operating margin was 6.2%. Net income reached $118.3M (diluted EPS $0.32), up from $33.9M ($0.10) a year earlier. Nine-month revenue was $3.325B versus $2.474B, with net income of $215.4M versus $61.2M.
- Q3 revenue $1.197B, up 35.2% YoY from $885.7M.
- Net income $118.3M vs $33.9M a year earlier; diluted EPS $0.32 vs $0.10.
- Gross margin 80.2%; operating margin 6.2%.
- Nine-month revenue $3.325B vs $2.474B; net income $215.4M vs $61.2M.
- Stock-based compensation $237.2M in Q3, up from $200.6M a year earlier.
Extended-hours last trade $189.54, up 0.43% vs regular close, despite a 14.42% regular-session drop to $188.72. The after-hours stabilization suggests the strong results were largely priced in or offset broader market weakness.
Datadog delivered accelerating profitability alongside 35% revenue growth, a rare combination that validates its operating leverage story.
Datadog's 35% revenue growth and swing to profitability reinforce its position among high-growth observability peers, though the 14% regular-session decline signals broader software-sector pressure.
Full valuation allowance maintained on federal and state deferred tax assets; goodwill rose to $706.6M from $530.6M on 2026 acquisitions, adding impairment exposure.