Here's What to Expect From Datadog's Next Earnings Report

New York-based Datadog, Inc. (DDOG) operates an observability and security platform for cloud applications in the United States and internationally. Valued at a market capitalization of $96.8 billion, the company’s products include infrastructure and application performance monitoring, log management, observability pipelines, synthetics, real user monitoring, product analytics, and more. Datadog is expected to release its Q3 2026 earnings on Thursday, November 4, before the market opens.

Ahead of the event, analysts expect the company’s EPS to be $0.18 on a diluted basis, up 63.6% from $0.11 in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in each of its last four quarters, which is impressive.

For fiscal 2026, analysts project the company’s EPS to be $0.70, up 66.7% from $0.42 in fiscal 2025. Moreover, its EPS is expected to rise by roughly 41.4% year over year (YoY) to $0.99 in fiscal 2027.   

DDOG stock has surged 79.1% over the past 52 weeks, outperforming the S&P 500 Index’s ($SPX) 13% rise and the State Street Technology Select Sector SPDR ETF’s (XLK) 26.9% rise during the same time frame.     

On Oct. 19, DDOG stock rose 5.4% following an upgrade from Bernstein SocGen Group. The stock got an upgrade to “Outperform” with a $350 price target following easing Treasury yields and broad dip-buying, which spurred a relief rebound across enterprise software. Bernstein cited citing alternative data indicating enterprise token consumption among major artificial intelligence laboratories’ 50% growth over the last quarter being the primary reason behind the upgrade. According to the broker, accelerating generative AI activity is reigniting observability demand, which is helping offset earlier contract revisions.  

Analysts are also highly bullish about DDOG, with the stock having a “Strong Buy” rating overall. Among the 46 analysts covering the stock, 40 recommend a “Strong Buy,” three recommend a “Moderate Buy,” two recommend a “Hold,” and one recommends a “Strong Sell.” DDOG’s average analyst price target of $300.49 offers a 7.2% upside potential. 

On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.