# Datadog (DDOG) Q2 2026 earnings

Results filed 2026-08-06 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/ddog/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1561550/000162828026053829/0001628280-26-053829-index.htm
> Summaries and transcripts are machine-generated and can contain errors.

## In brief

Datadog's second quarter revenue grew 36% year-over-year to $1.12 billion, with GAAP net income per diluted share of $0.12, non-GAAP net income per diluted share of $0.65, operating cash flow of $316 million and free cash flow of $279 million.

Datadog's second-quarter revenue grew 36% from a year ago to $1.12 billion. It was barely profitable under GAAP, with operating income of $5 million. Excluding items such as stock-based compensation, operating income was $257 million, a 23% margin. The company generated $316 million of operating cash flow and $279 million of free cash flow. Customers with at least $100,000 in annual recurring revenue (ARR) rose to about 4,720 from about 3,850 a year ago.
For the third quarter, Datadog expects revenue of $1.135 billion to $1.145 billion. For the full year, it expects $4.45 billion to $4.47 billion. Non-GAAP operating income is guided to $260 million to $270 million for the third quarter. The main tension is that GAAP profit stays thin because of heavy stock-based compensation, while the company invests in AI products and acquisitions. Non-GAAP gross margin slipped to 80% from 81% a year ago.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Revenue | $1.12 billion | an increase of 36% year-over-year | GAAP |
| GAAP net income | $44,558 | up from $2,647 a year ago | GAAP |
| GAAP diluted EPS | $0.12 | up from $0.01 a year ago | GAAP |
| Non-GAAP diluted EPS | $0.65 | up from $0.46 a year ago | non-GAAP |
| Non-GAAP gross margin | 80% | down from 81% a year ago | non-GAAP |
| GAAP operating income | $5 million | compared with an operating loss of $(35,500) thousand a year ago | GAAP |
| Non-GAAP operating income | $257 million |  | non-GAAP |
| GAAP operating margin | 0% |  | GAAP |
| Non-GAAP operating margin | 23% |  | non-GAAP |
| Operating cash flow | $316 million |  | GAAP |
| Free cash flow | $279 million |  | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Customers with ARR of $100,000 or more | about 4,720 | an increase of 23% from about 3,850 as of June 30, 2025 |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Revenue | third quarter of 2026 | between $1.135 billion and $1.145 billion |
| Non-GAAP operating income | third quarter of 2026 | between $260 million and $270 million |
| Non-GAAP net income per share | third quarter of 2026 | between $0.63 and $0.65 |
| Revenue | full year 2026 | between $4.45 billion and $4.47 billion |
| Non-GAAP operating income | full year 2026 | between $1.01 billion and $1.03 billion |
| Non-GAAP net income per share | full year 2026 | between $2.50 and $2.54 |

## Key takeaways

1. **Revenue growth stayed strong at 36%** Revenue was $1.12 billion, an increase of 36% year-over-year. Six-month revenue was $2,127,880 thousand versus $1,588,313 thousand a year earlier.
2. **GAAP profit remains thin despite scale** GAAP operating income was $5 million and GAAP operating margin was 0%. Stock-based compensation of $220,251 thousand is the main gap to non-GAAP operating income of $257 million.
3. **Cash generation improved sharply** Operating cash flow was $316 million and free cash flow was $279 million. A year ago free cash flow was $165,353 thousand.
4. **Larger customers continue to expand** Datadog had about 4,720 customers with ARR of $100,000 or more, up 23% from about 3,850 a year ago.
5. **Full-year outlook is $4.45–$4.47 billion** Datadog guides full-year revenue between $4.45 billion and $4.47 billion and third-quarter revenue between $1.135 billion and $1.145 billion. Third-quarter non-GAAP net income per share is guided at $0.63 to $0.65.

## Questions

**How much revenue did Datadog report for Q2 2026?** Datadog reported revenue of $1.12 billion, an increase of 36% year-over-year. The exact GAAP figure was $1,121,454 thousand versus $826,760 thousand a year earlier.
**Is Datadog profitable?** Under GAAP, Datadog earned net income of $44,558 thousand, or $0.12 per diluted share, with operating income of just $5 million. Non-GAAP operating income was $257 million and non-GAAP EPS was $0.65.
**How much cash did Datadog generate?** Operating cash flow was $316 million and free cash flow was $279 million. Cash, cash equivalents and marketable securities totaled $5.0 billion at June 30, 2026.
**What is Datadog's guidance for Q3 and the full year 2026?** For Q3, Datadog expects revenue of $1.135 billion to $1.145 billion and non-GAAP EPS of $0.63 to $0.65. For the full year, it expects revenue of $4.45 billion to $4.47 billion and non-GAAP EPS of $2.50 to $2.54.
**What product and business news came with the quarter?** Datadog launched Bits Code, Bits Chat and Bits Agent Builder for general availability, and acquired Adaptive ML. It was also named a Leader in the Gartner Magic Quadrant for Observability Platforms for the sixth consecutive year.