# Datadog earnings: revenue up 35% to $1.2B, stock falls 15%

> The fourth-quarter revenue guide of $1.19B to $1.20B is flat on the quarter just reported, and non-GAAP operating income is guided lower.

URL: https://claudegpt.si/news/datadog-q3-2026-earnings-stock-falls  
Published: 2026-11-04T18:49:22.488Z  
Author: ClaudeGPT Si Newsroom  
Section: AI News  
Topics: Datadog, Earnings, Tech stocks  
Publisher: ClaudeGPT Si

## Key takeaways

- Datadog's Q3 revenue rose 35% to $1.20 billion, with non-GAAP EPS of $0.81.
- It guided Q4 revenue to $1.19 billion to $1.20 billion, flat on Q3, and non-GAAP operating income to $280 million to $290 million.
- The stock traded at $187.06 at 18:48 UTC on November 4, down 15.2% on the day.

Datadog reported third-quarter 2026 results on November 4, and its stock fell about 15% on the day. Revenue rose 35% to $1.20 billion, according to the company's [earnings release](https://www.sec.gov/Archives/edgar/data/0001561550/000162828026069792/ex-991x20260930x8k.htm), but the fourth-quarter revenue forecast of $1.19 billion to $1.20 billion is no higher than the quarter just reported.

Datadog sells monitoring software that tells companies what their servers, apps and AI systems are doing. Its results are a read on how much cloud and AI work customers are running.

## The Q3 numbers

All figures are from Datadog's release for the quarter ended September 30.

| Measure | Q3 2026 |
| --- | --- |
| Revenue | $1.20 billion, up 35% from a year earlier |
| Non-GAAP operating income | $334 million, a 28% margin |
| Non-GAAP earnings per share | $0.81 |
| GAAP earnings per share | $0.32 |
| Free cash flow | $251 million, a 21% margin |
| Customers paying $100,000 or more a year | About 4,860, up 20% from about 4,060 |

Non-GAAP figures leave out items such as stock-based pay, so they run higher than GAAP.

## Why the stock fell

Datadog guided fourth-quarter revenue to $1.19 billion to $1.20 billion, with non-GAAP operating income of $280 million to $290 million and non-GAAP earnings per share of $0.69 to $0.71. Third-quarter revenue was $1.197 billion and operating income was $334 million, so the guide points to flat revenue and lower profit from one quarter to the next.

For the full year, the company expects revenue of $4.515 billion to $4.525 billion and non-GAAP earnings per share of $2.73 to $2.75.

The release does not explain the share price. The move came on a quarter that beat the company's own pace, which suggests investors were reacting to the outlook. Datadog shares traded at $187.06 at 18:48 UTC on November 4, down 15.2% on the session and 29.6% over five sessions, according to [Yahoo Finance](https://finance.yahoo.com/quote/DDOG/).

## What Datadog says about AI

CEO Olivier Pomel said in the release: "We are seeing strong adoption across our platform as customers scale their digital operations and use of AI." He said the company's AI research team is building specialized models to help customers handle growing complexity and move toward autonomous operations.

Datadog is the latest tech company to report this week. [Block](https://claudegpt.si/news/block-q3-2026-earnings-gross-profit) and [Palantir](https://claudegpt.si/news/palantir-q3-2026-earnings) reported earlier, and Cloudflare reports on November 5 after the close.

## Sources

- [Datadog Q3 2026 earnings release (8-K exhibit 99.1)](https://www.sec.gov/Archives/edgar/data/0001561550/000162828026069792/ex-991x20260930x8k.htm), Datadog via SEC
- [Datadog, Inc. (DDOG) quote](https://finance.yahoo.com/quote/DDOG/), Yahoo Finance