Datadog Q2 Revenue Hits $1.12B, Up 36% YoY — Stock Falls Despite Beat

Datadog posted fiscal 2026 Q2 revenue of $1.12 billion, up 36% year-over-year, according to an SEC 8-K filing disclosed on the 6th (local time).

📊 Stock Price at Time of Writing (August 6, 2026, 9:05 PM KST)
$283.17 ▼ -1.73%

Q2 Earnings at a Glance

Both revenue and profit increased, driven by growth in large customers with annual contract values above $100,000 and stronger new-product sales. During the quarter, Datadog officially launched its AI coding assistant 'Bits Code' along with new AI agent-building tools, and acquired AI startup Adaptive ML. Still, GAAP operating income came in at just $5 million, leaving operating margin effectively at 0%.

• Revenue: $1.12 billion, up 36% year-over-year
• EPS: $0.12 on a GAAP basis, $0.65 on a non-GAAP basis (excluding stock-based compensation and other one-time items)
• Operating income: $5 million GAAP, $257 million non-GAAP
• Customers with $100K+ ARR: roughly 4,720, up 23% from 3,850 a year earlier

Next-Quarter Outlook

Datadog guided Q3 revenue to a range of $1.135 billion to $1.145 billion, with non-GAAP operating income expected between $260 million and $270 million. Full-year revenue guidance was set at $4.45 billion to $4.47 billion, with full-year non-GAAP operating income projected at $1.01 billion to $1.03 billion.

Market Reaction

Shares fell despite the strong results. As of 9:05 p.m. KST on the 6th, Datadog traded at $283.17, down 1.73% from the previous close. Seeking Alpha noted that 'shares slipped even though the company beat estimates and raised its full-year outlook.' GuruFocus rated Datadog's GF Score — a composite measure of investment attractiveness — at 79 out of 100.

This article was automatically generated based on the original SEC 8-K filing and international media reports, with the goal of quickly delivering key data immediately after the announcement. Readers are advised to consult the company's official filing before making trading decisions. The stock price reflects the time of writing and may differ from the current price.