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DDOG · Analysis updated Nov 4, 2026, 9:00 AM ET
Why is Datadog (DDOG) stock moving?
Datadog reported Q3 2026 results on Nov 4 that beat on the top and bottom lines. Revenue rose about 35% to $1.20B against $1.14B expected, and adjusted EPS was $0.81 against $0.64. Non-GAAP operating margin was 28%, and $100k+ customers rose to about 4,860. Even so, the shares fell sharply, with reports of about 16% to 18% declines in pre-market and early trading. Q4 revenue guidance of $1.19B to $1.2B is roughly flat from Q3 and in line with consensus. Free cash flow margin also fell to 20.9% from 24.9% in the prior quarter. The stock was already down about 22% over the prior week, from $280.82 on Oct 27 to $216.10 on Nov 2, in a broad software and AI selloff. Volume was heavy on Oct 30 and Nov 2-3. Valuation remains rich, with a trailing P/E above 400. Insider selling was large, and one fair-value estimate sits below the pre-earnings price. Analyst sentiment is still mostly positive, with an average target near $295. Overall, strong fundamentals are meeting a sharp de-rating, and volatility is likely to stay high.
News behind the analysis
- Datadog: Q3 Earnings SnapshotQ3 adjusted EPS was 81 cents against a 64 cent estimate, and revenue was $1.2B against $1.14B expected. Q4 revenue guidance is $1.19B to $1.2B.
- Datadog (NASDAQ:DDOG) exceeds Q3 2026 expectations but stock drops 16.1%Revenue rose 35.2% to $1.20B, a 4.6% beat. Free cash flow margin fell to 20.9% from 24.9%. Q4 revenue guidance is roughly in line with consensus, and the shares fell sharply.
- Datadog Announces Third Quarter 2026 Financial ResultsRevenue grew 35% to $1.20B. About 4,860 customers pay $100k+ ARR, up from about 4,060 a year ago. The company launched its Scout 1.0 specialized model.
- Datadog (DDOG) Q3 Earnings Beat Estimates, Shares Slightly Overvalued on GF ValueNon-GAAP EPS of $0.81 beat consensus by $0.17. GuruFocus puts fair value near $208.83 and notes insiders sold $905.9M of shares over the past 12 months.
- Datadog Inc Reports Q3 Revenue of $1.20 Billion and GAAP EPS of $0.32Non-GAAP operating margin was 28% and free cash flow was $251M. GAAP operating income was $75M, compared with a loss a year earlier.
- Palantir Falls 6% Despite Earnings Beat; Datadog Drops 3%, Snowflake Slides 2%Software and AI stocks sold off sharply over the past week. Datadog fell even more than Palantir over that stretch.
- Datadog, Inc. (DDOG) Stock Price, News, Quote & HistoryEvercore ISI raised its price target to $300 from $280 on Nov 2. The average analyst target is about $295 and the 52-week range is $98.01 to $300.68.
- DDOG Stock Price and Chart — TradingViewShares were down about 21.6% over the week and about 22% over the month. They hit an all-time high of $300.68 on Oct 12, 2026.
- Datadog (DDOG) Stock Price Today – Fool.comThe stock is down about 21.5% over one week. A pre-market quote of $181.39 shows a drop of about 17.8% after earnings.