Datadog anticipates robust fourth-quarter earnings fueled by demand for AI-driven security solutions.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 06 2025
0mins
Should l Buy DDOG?
Source: Reuters
Strong Q4 Forecast: Datadog anticipates fourth-quarter earnings exceeding Wall Street estimates, driven by high demand for its cloud-security products amid increasing adoption of artificial intelligence technology.
Stock Performance: The company's shares have risen 8.5% this year and saw a nearly 10% increase in premarket trading following the earnings forecast.
Revenue Growth: Datadog reported a 28% increase in revenue for the third quarter, reaching $885.65 million, surpassing analyst expectations.
Customer Base and Market Position: The company, which joined the S&P 500 in July, serves notable clients like Shell, PayPal, and Comcast, highlighting its strong market presence.
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Analyst Views on DDOG
Wall Street analysts forecast DDOG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DDOG is 207.39 USD with a low forecast of 140.00 USD and a high forecast of 255.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
33 Analyst Rating
30 Buy
3 Hold
0 Sell
Strong Buy
Current: 111.690
Low
140.00
Averages
207.39
High
255.00
Current: 111.690
Low
140.00
Averages
207.39
High
255.00
About DDOG
Datadog, Inc. provides an observability and security platform for cloud applications. The Company’s SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, log management, user experience monitoring, cloud security and many other capabilities to provide unified, real-time observability and security for its customers’ entire technology stack. Its platform consists of products that can be used individually or as a unified solution and includes a marketplace where customers can access products built by its partners on top of the Datadog platform. Its products include Infrastructure Monitoring, Application Performance Monitoring, Log Management, Digital Experience Monitoring, Continuous Profiler, Database Monitoring, Data Observability, Universal Service Monitoring, Network Monitoring and others. It owns Metaplane, an end-to-end data observability platform that provides advanced machine learning-powered monitoring and column-level lineage.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Datadog Q4 Earnings Preview: Strong Outlook Amid Competition Concerns
- Earnings Announcement: Datadog is set to announce its Q4 earnings on February 10, with an expected EPS of $0.55, reflecting a 12.2% year-over-year increase, and projected revenue of $918.2 million, a 24.4% increase, indicating strong growth potential.
- Upgraded Full-Year Outlook: The company raised its 2025 revenue guidance to between $3.386 billion and $3.390 billion, demonstrating confidence in future growth despite competitive pressures and negative market sentiment.
- Analyst Rating Changes: Stifel upgraded Datadog to a “Buy,” citing an attractive risk-reward profile and noting an acceleration in core business growth, which reflects analysts' confidence in the company's future performance.
- Stock Price Volatility: Datadog shares have fallen nearly 18% since the beginning of the year, while the S&P 500 has risen by 1.3%, indicating market concerns about its future performance, yet analysts generally see strong buying opportunities for the stock.
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Datadog Q4 Earnings Preview: Strong Outlook Amid Competition Concerns
- Earnings Announcement: Datadog is set to announce its Q4 earnings on February 10, with an expected EPS of $0.55, reflecting a 12.2% year-over-year increase, and projected revenue of $918.2 million, a 24.4% increase, indicating strong growth potential.
- Upgraded Full-Year Outlook: The company raised its 2025 revenue guidance to between $3.386 billion and $3.390 billion, demonstrating confidence in future growth despite competitive pressures and negative market sentiment.
- Analyst Rating Changes: Stifel upgraded Datadog to a “Buy,” citing an attractive risk-reward profile and noting an acceleration in core business growth, which reflects analysts' confidence in the company's future performance.
- Stock Price Volatility: Datadog shares have fallen nearly 18% since the beginning of the year, while the S&P 500 has risen by 1.3%, indicating market concerns about its future performance, yet analysts generally see strong buying opportunities for the stock.
See More
High-Volume Earnings Reports This Week from Tech and Consumer Sectors
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- Monday.com and Pagaya Reports: On Monday, work management SaaS provider Monday.com and fintech company Pagaya released their earnings before the market opened, with expectations that their results will reflect broader industry trends.
- Coinbase Earnings Expectations: On Thursday, Coinbase is expected to report earnings of 68 cents per share and quarterly revenue of $1.86 billion, despite facing a projected 33% drop in transaction revenue, raising investor interest in its growing stablecoin and subscription services.
- Nebius Group Forecast: Also on Thursday, Nebius Group is projected to report a loss of $1.14 per share and revenue of $246.05 million, with analysts expressing caution, reflecting concerns over cloud service demand in the current market environment.
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- Investor Sentiment: There is a prevailing uncertainty among investors regarding the market's ability to maintain upward momentum following last week's gains.
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- Economic Data Focus: Key economic releases, including the nonfarm payrolls report and consumer price index, are set to be released this week, which could influence the Fed's rate decisions, with markets pricing in the first rate cut potentially in June.
- Stock Movements: Eli Lilly shares rose 2.1% in premarket trading, while Hims & Hers dropped 14% after canceling a weight-loss pill launch due to FDA legal threats, highlighting market sensitivity to regulatory risks.
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Key Earnings Reports and Economic Outlook This Week
- DuPont Earnings Expectations: DuPont is expected to report earnings of $0.43 per share and revenue of $1.69 billion for Q4 2025, with analysts noting ongoing pressure in short-cycle businesses, while slight improvements in the automotive sector may influence investor sentiment.
- Cisco's AI Focus: Cisco anticipates earnings of $1.02 per share and revenue of $15.1 billion for Q2 FY2026, with CEO highlighting a major multi-year campus networking refresh, making AI infrastructure demand a critical growth driver.
- Importance of Employment Report: The January employment report is expected to show an addition of 80,000 nonfarm payrolls and an unchanged unemployment rate of 4.4%, directly impacting private consumption and U.S. GDP, making it crucial for investors to monitor.
- Consumer Price Index Insights: The January CPI is projected to increase by 2.5% year-over-year, with core CPI rising by 2.6%, providing essential inflation details despite not being the Fed's preferred measure, particularly regarding persistent shelter cost inflation.
See More
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