Datadog (DDOG)
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-04
$212.93-0.85%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-04
QuarterlyIQ Insights · DDOG
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within information technology on a research-validated quality screen. As of 2026-09-04.
The screen ranks DDOG against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Information Technology names rated neutral grew net income 55% of the time over the next year (vs 56% for the rest of the cohort, n=8445).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Met or beat guidance 75% of the last 8 guided quarters · -4.0% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Continue strong revenue growth with a full year 2026 revenue target between $4.45 billion and $4.47 billion.
Stated as a priority in 5 of last 5 quarters. Revenue grew from $761.6 million in 2025-Q1 to $1.12 billion in 2026-Q2, a 36% year-over-year increase. Management raised full year 2026 revenue guidance from $4.06-$4.10 billion in 2025-Q4 to $4.45-$4.47 billion in 2026-Q2, indicating delivery and acceleration on growth targets.
“Full Year 2026 Outlook: Revenue between $4.45 billion and $4.47 billion.”
“Full Year 2026 Outlook: Revenue between $4.30 billion and $4.34 billion.”
“Fiscal Year 2026 Outlook: Revenue between $4.06 billion and $4.10 billion.”
“Full Year 2025 Outlook: Revenue between $3.386 billion and $3.390 billion.”
“Full Year 2025 Outlook: Revenue between $3.312 billion and $3.322 billion.”
Target non-GAAP net income per share between $2.50 and $2.54 for full year 2026, improving profitability.
Stated as a priority in 5 of last 5 quarters. Non-GAAP net income per share guidance increased from $2.08-$2.16 in 2025-Q4 to $2.50-$2.54 in 2026-Q2. Reported diluted EPS improved from $0.01 in 2025-Q2 to $0.12 in 2026-Q2, showing progress toward profitability targets.
“Non-GAAP net income per share between $2.50 and $2.54 for full year 2026.”
Grow the number of customers with annual recurring revenue of $100,000 or more, reflecting enterprise adoption.
Stated as a priority in 5 of last 5 quarters. The number of customers with $100k+ ARR grew from about 3,770 in 2025-Q1 to about 4,720 in 2026-Q2, a 26% increase, demonstrating consistent expansion of the enterprise customer base.
“About 4,720 customers with $100k+ ARR, up from 3,850 a year ago.”
Invest in AI-powered observability, security, and automation products to address rising complexity and customer needs.
Stated as a priority in 3 of last 5 quarters. Management launched multiple AI-powered products and acquired Adaptive ML to accelerate AI research. These initiatives align with management's stated focus on AI innovation, showing active product development but without direct financial metrics to quantify impact.
“Launched AI-powered Bits Code, Bits Chat, and Bits Agent Builder for general availability.”
Execute the corporate redomiciliation from Delaware to Nevada to optimize corporate structure.
Newly stated in 2026-Q2. Management announced stockholder approval of redomiciliation to Nevada in April 2026. This is a one-time structural priority with no direct financial metrics reported yet.
“Stockholders approved redomiciliation from Delaware to Nevada.”
Over the trailing year it converted 5.97x of net income into operating cash flow. Historically, Information Technology names rated robust grew net income 62% of the time over the next year (vs 50% for the rest of the cohort, n=3128).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, Fed net liquidity, long-term interest rates (low R² over the window).
8 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Information Technology names rated stable grew net income 54% of the time over the next year (vs 60% for the rest of the cohort, n=2709).
Not investment advice. As of 2026-09-04.
“Non-GAAP net income per share between $2.36 and $2.44 for full year 2026.”
“Non-GAAP net income per share between $2.08 and $2.16 for full year 2026.”
“Non-GAAP net income per share between $2.00 and $2.02 for full year 2025.”
“Non-GAAP net income per share between $1.80 and $1.83 for full year 2025.”
“About 4,550 customers with $100k+ ARR, up from 3,770 a year ago.”
“About 4,310 customers with $100k+ ARR, up from 3,610 a year ago.”
“About 4,060 customers with $100k+ ARR, up from 3,490 a year ago.”
“About 3,850 customers with $100k+ ARR, up from 3,390 a year ago.”
“Launched MCP Server, Bits AI Security Agent, GPU Monitoring, and Experiments for general availability.”
“Introduced AI agents Bits AI SRE, Bits AI Dev Agent, and Bits AI Security Analyst.”