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Datadog Q1 2026 Revenue Surpasses $1B, Up 32% YoY

Datadog reports Q1 2026 revenue of $1.06B, up 32% YoY with non-GAAP EPS of $0.60. Stock surges 20% post-earnings.

Justin Jeon·May 7, 2026 at 21:02·3 min read

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AIKey Summary

Datadog delivered Q1 2026 revenue of $1.06B, up 32% YoY, with non-GAAP EPS of $0.60
Stock surged 20% post-earnings; company raised full-year revenue guidance to $4.3B–$4.34B

According to SEC 8-K filing, Datadog (DDOG) posted Q1 2026 revenue of $1.06 billion, exceeding market expectations.

📊 Price at article publication (May 7, 2026, 21:01 KST)
$143.71 ▼ -1.39%
₩208,523 KRW (1451 rate)

Q1 Results at a Glance

Datadog's Q1 revenue grew 32% year-over-year, driven by sustained demand for cloud-based IT monitoring services. Operating cash flow reached $335 million.

Revenue: $1.06B, +32% YoY
EPS (non-GAAP): $0.60 | EPS (GAAP): $0.15
Non-GAAP operating income: $223M, 22% operating margin
GAAP operating income: $7M, 1% operating margin
Operating cash flow: $335M
Free cash flow: $289M
Cash and equivalents: $4.8B

FY2026 Guidance

Datadog guided Q2 2026 revenue to $1.07B–$1.08B with non-GAAP operating income of $225M–$235M and non-GAAP EPS of $0.57–$0.59. For full-year 2026, the company projected revenue of $4.3B–$4.34B and non-GAAP operating income of $940M–$980M. CEO Olivier Pomel stated: "We are helping customers of all sizes and across all industries adopt cloud and AI-based solutions."

Market Reaction

Datadog shares surged 20% immediately following the earnings release, according to Seeking Alpha. However, as of May 7, 2026 at 21:01 KST, the stock traded at $143.71, down 1.39% from the prior close. Year-to-date, the stock is up 37%, per TIKR.com. The count of large customers generating over $1M in annual recurring revenue grew 21% to 4,550.

This article is auto-generated from SEC 8-K filings and external reports to deliver key data immediately following disclosure. Please review official company filings before making trading decisions. Stock prices reflect the publication timestamp and may differ from current levels.

DDOG

Frequently Asked Questions

What does Datadog do?

Datadog is a cloud-based monitoring and analytics platform that helps enterprises monitor their IT infrastructure, applications, and security in real-time. Major tech companies like Netflix and Amazon use Datadog to track system performance and identify issues.

What is the difference between GAAP and non-GAAP earnings?

GAAP (Generally Accepted Accounting Principles) earnings include all costs under standard accounting rules. Non-GAAP earnings exclude one-time items like stock-based compensation to show underlying operational performance. In Q1, Datadog's GAAP operating income was $7M while non-GAAP was $223M, reflecting significant stock compensation costs.

Why is the $1M+ customer count important?

The disclosed metric tracks large customers spending $100K+ annually in recurring revenue. Growth in this cohort signals that enterprise customers with larger budgets are expanding their use of Datadog services. This quarter's count grew 21% to 4,550 customers year-over-year.

How does Datadog relate to AI?

Datadog provides tools for enterprises to monitor AI service performance, track errors, and manage GPU costs. The company recently launched GPU monitoring features and AI security analysis tools. According to company research, approximately 5% of AI model requests fail in production environments, with 60% caused by capacity constraints that Datadog helps identify.

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Justin Jeon

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