Datadog stock tests growth case after strong quarter and new AI model

Datadog stock traded at 163.20 euros on Lang & Schwarz at 16:03 CET on Thursday, November 12, 2026. That compares with the 168.80-euro quote in the previous report published on Wednesday, November 11, a change of -3.32 percent.

Datadog reported third-quarter revenue growth of 35 percent year over year to 1.20 billion US dollars for the period ended September 30, 2026. The company released the results on November 4, according to its investor relations news releases.

Customer expansion supports growth

Datadog ended the quarter with about 4,860 customers generating at least 100,000 US dollars in annual recurring revenue, up from about 4,060 a year earlier. The larger-account base remains a key indicator for platform adoption as customers expand digital operations and artificial intelligence usage.

Scout adds an AI angle

Scout 1.0 is Datadog AI Research's first specialized model for production investigations. The model is in preview and powers Bits Investigation, which is designed to investigate production issues. Datadog said Scout delivers frontier-model performance at a fraction of the inference cost, supporting more frequent investigations.

Guidance sets the next test

Management expects fourth-quarter revenue of 1.19 billion to 1.20 billion US dollars, non-GAAP operating income of 280 million to 290 million US dollars and non-GAAP diluted earnings per share of 0.69 to 0.71 US dollars. Full-year revenue guidance stands at 4.515 billion to 4.525 billion US dollars.

The third quarter included GAAP operating income of 75 million US dollars and non-GAAP operating income of 334 million US dollars. Operating cash flow reached 290 million US dollars, while free cash flow was 251 million US dollars. Investors therefore need to distinguish adjusted profitability from GAAP results, including the effect of stock-based compensation excluded from non-GAAP measures.

US technology shares remain sensitive to expectations for artificial intelligence investment and enterprise software demand; the S&P 500 market provides the relevant broader benchmark.

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