DDOG

Datadog, Inc.

$256.43

-1.51% Oct 20 close

Information TechnologyS&P 500

1M 3M 6M 1Y 2Y

DDOGSPY

-9.5%

+11.5%

+0.6%

+98.3%

YTD

+88.6%

+64.1%

Live chart

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What they do

Datadog, Inc. operates an observability and security platform for cloud applications in the United States and internationally. The company's products comprise infrastructure and application performance monitoring, log management, observability pipelines, synthetics, real user monitoring. Datadog, Inc. was incorporated in 2010 and is headquartered in New York, New York.

Technology · Software - Application

For information only · Important disclosures

Grades vs sector

Momentum

69th percentile in sector

12-1 return: +68.2%
Percentile within its GICS sector across the S&P 1500.

Growth

80th percentile in sector

A-

Revenue growth (YoY): +35.6%
Percentile within its GICS sector across the S&P 1500.

Value

1st percentile in sector

Forward E/P: 1.2% · EBITDA/EV: 0.1%
Percentile within its GICS sector across the S&P 1500.

Profitability

24th percentile in sector

D+

Profit margin: +4.5% · Return on equity: +4.7%
Percentile within its GICS sector across the S&P 1500.

Revisions

Not enough data yet

–

EPS estimate change, 30 days (current FY): –
30-day change in analysts' current-year EPS estimate; graded across covered stocks.

Our models

Held by 1 of 5 live models: New Highs Growth.

New Highs Growth

4.0% of the book · ranked 28 of 589

Held Quality Growth

Outside this model's universe or screens

Momentum Top 15

ranked 47 of 499 · 12-month momentum 66.5%

Momentum Blend

Not in the current book

Coteau Long Book

Not in the current book

Why it's in the New Highs Growth #28 of 589

Qualified on Software, -5% from 52-week high, revenue +36% y/y, 12-1 momentum +63%. Ranked 28th of 589 at the 2026-09-30 rebalance.

What would knock it out: Drops out if it falls outside the top 25 at the next rebalance (Oct 30). In the latest preview (2026-10-19) it is outside the top 25.

News

More news

Datadog’s (DDOG) Expectations Have Outrun Its Earnings. What Lies Ahead?

Insider Monkey · Oct 20

Stocks making big moves yesterday: Datadog, SolarEdge, AMD, Western Digital, and Amazon

StockStory · Oct 20

Palantir, Datadog and chip stocks bounce back as Amazon lifts Wall Street

Yahoo Finance · Oct 19

Sandisk, Datadog, Amazon Lead S&P 500 As AI Stocks Rebound

Investor's Business Daily · Oct 19

Update: Equities Rise Intraday as Busy Earnings Week Kicks Off

MT Newswires · Oct 19

Key stats

Market value$92.1B

P/E (last 12 months)512.9

P/E (next 12 months, estimated)85.9

52-week range$98.01 – $300.68

Revenue growth (latest quarter vs a year ago)+35.6%

Dividend yieldNo dividend

Analyst consensusStrong Buy (47)

Average analyst price target$292.36 (+14%)

Valuation and fundamentals

Valuation & fundamentals

Bottom line

Looks expensive

Model read-out from the numbers below, not advice. Score -3 (DCF counts double).

▼DCF (base case)below the price by 37%

▼Forward P/E vs sector85.9x vs median 16.9x

•Piotroski F-score6/9

▲Altman Z18.6 (safe)

▲Net debt / EBITDA-63.6x

•Analyst target+14% (47 analysts)

Discounted cash flow

Bear

$84

-67%

growth 18% · disc. 12.8% · term. 2.0%

Base

$162

-37%

growth 30% · disc. 11.8% · term. 2.5%

Bull

$273

+7%

growth 38% · disc. 10.8% · term. 3.0%

A DCF starts from trailing free cash flow, so it can overstate value if the last 12 months were unusually strong (or weak). Use the bear case or edit the starting cash flow if so.

Reverse DCFfor context, not a signal

Today's price assumes free cash flow grows about 30% a year for 10 years.

Implied

+30%/yr

FCF, last 3 yrs

+38%/yr

FCF, last 5 yrs

+57%/yr

Revenue, last 3 yrs

+27%/yr

Revenue, last 5 yrs

+42%/yr

Same inputs as the DCF above: trailing free cash flow 1.2B, 11.8% discount rate, 2.5% growth after year 10, net cash and today's share count. Actual growth rates are compound annual rates from SEC annual filings through FY2025; "n/a" means too little history or a negative starting year.

Edit assumptions · recalculates instantly

Your value per share–

Free cash flow = operating cash flow − capital spending, trailing 12 months (TTM to 2026-06-30). Growth default: average of 3-year revenue CAGR and latest revenue growth, capped at 30%. Years 6–10 fade linearly to terminal growth. Discount rate = 4.25% risk-free assumption + beta 1.51 × 5% equity premium, kept within 7–13%. Bear: lower growth, +1 pt discount, 2% terminal. Bull: higher growth, −1 pt, 3%.

Multiples vs Information Technology

P/E (trailing)

sector median 35.9× · 98th pct

512.9×
pricier

Forward P/E

sector median 16.9× · 99th pct

85.9×
pricier

EV / EBITDA

sector median 20.8× · 99th pct

1,111.9×
pricier

Price / sales

sector median 4.6× · 93rd pct

23.2×
pricier

Price / book

sector median 5.1× · 90th pct

21.1×
pricier

FCF yield

sector median 3.5% · 20th pct

1.3%
pricier

Forward EPS $2.99 vs trailing $0.50 (+497% expected growth). Forward P/E uses analysts' next-12-month estimate.

Backlog (remaining performance obligations)

RPO

$3.5B

as of 2026-06-30

vs a year ago

+43%

YoY

× TTM revenue

0.88×

coverage

24-09

24-12

25-03

25-06

25-09

25-12

26-03

26-06

Contracted revenue not yet recognized, from SEC filings (XBRL tag RevenueRemainingPerformanceObligation).

Quality & financial health

Gross margin

79.5%

Operating margin

0.4%

FCF margin

29.8%

Net margin

4.5%

Return on equity

4.1%

Return on invested capital

–

Net debt / EBITDA

-63.6×

Current ratio

3.2×

Interest cover

1.4×

Cash conversion (OCF/NI)

6.9×

Piotroski F-score 6/9 · last two fiscal years

✓ Positive net income✓ Positive operating cash flow✗ Return on assets improved✓ Cash flow above net income✓ Long-term debt / assets fell✓ Current ratio improved✗ No share dilution✗ Gross margin improved✓ Asset turnover improved

Altman Z-score 18.6 (safe zone; above 3.0 = safe, below 1.8 = distress). Not meaningful for banks and insurers.

Analysts

Mean target

$292

+14%

Analysts

Strong Buy

Range

$158–$350

low – high

● price · ◆ mean target

Annual history

FY	Revenue	Net income	Free cash flow
2025	$3.4B	$107.7M	$1.0B
2024	$2.7B	$183.7M	$835.9M
2023	$2.1B	$48.6M	$632.4M
2022	$1.7B	$-50.2M	$383.1M
2021	$1.0B	$-20.7M	$276.6M
2020	$603.5M	$-24.5M	$103.7M

From the company's 10-K filings via SEC XBRL. 3-year revenue CAGR +26.9%.

Earnings

Next report: 2026-11-04 · before open · EPS est 0.64

EstimateActual (beat)Actual (miss)

Report	EPS est	Actual	Surprise
2026-08-06	0.58	0.65	+11.4%
2026-05-07	0.51	0.60	+18.2%
2026-02-10	0.55	0.59	+6.3%
2025-11-06	0.46	0.55	+20.3%
2025-08-07	0.41	0.46	+12.8%
2025-05-06	0.42	0.46	+8.4%
2025-02-13	0.43	0.49	+13.2%
2024-11-07	0.40	0.46	+16.4%

Quarterly revenue

Quarter	Revenue	YoY
2026-06-30	$1.1B	+35.6%
2026-03-31	$1.0B	–
2025-12-31	$953.2M	–
2025-09-30	$885.7M	–
2025-06-30	$826.8M	–

Analyst actions

Bernstein

2026-10-19 · up

Market Perform → Outperform
PT $350

Mizuho

2026-10-15 · main

Outperform → Outperform
PT $330

Barclays

2026-10-13 · main

Overweight → Overweight
PT $300

RBC Capital

2026-10-12 · main

Outperform → Outperform
PT $320

CIBC

2026-10-09 · main

Outperformer → Outperformer
PT $315

Scotiabank

2026-08-08 · main

Sector Outperform → Sector Outperform
PT $285

Insider trades

Le-Quoc Alexis