Core Insights - Datadog reported strong third-quarter earnings and revenue that exceeded Wall Street expectations, with earnings rising 19% to $0.55 per share and revenue climbing 28% to $886 million [2][3] - The company provided an optimistic revenue forecast for the December quarter, projecting $914 million, surpassing analyst expectations of $889 million [3] - Datadog's stock surged 23% to $190.76, marking its highest level since early 2022, and is set to exceed traditional buy points [5] Financial Performance - Datadog's earnings for the September quarter were $0.55 per share on an adjusted basis, compared to analyst expectations of $0.45 [2] - Revenue for the quarter was $886 million, exceeding the forecast of $854 million [2] - Billings increased by 30% to $893 million, outperforming the expected growth of 26% [2] Market Position and Technical Ratings - Datadog holds a Composite Rating of 95 out of a possible 99, indicating strong market performance [8] - The stock has an Accumulation/Distribution Rating of B-minus, suggesting moderate institutional buying activity [8] Industry Context - Concerns have been raised regarding Datadog's relationship with OpenAI, a significant customer that is developing its own observability tools [6] - Datadog maintains a partnership with Amazon Web Services, which is crucial for its market positioning [6]

Datadog forecast fourth-quarter earnings above Wall Street estimates on Thursday, betting on strong demand for its cloud-security products from businesses adopting artificial intelligence technology. ...

November 6, 2025 Third quarter revenue grew 28% year-over-year to $886 million Robust growth of larger customers, with about 4,060 $100k+ ARR customers, up from about 3,490 a year ago Reached a milestone of over 1,000 integrations on the Datadog unified platform NEW YORK-- Datadog, Inc. (NASDAQ:DDOG), the monitoring and security platform for cloud applications, today announced financial results for its third quarter ended September 30, 2025. "Datadog had a strong third quarter, with 28% year-over-year reven ...

Core Insights - Datadog reported a strong third quarter with a revenue growth of 28% year-over-year, reaching $886 million [2][6] - The company achieved significant operational metrics, including $251 million in operating cash flow and $214 million in free cash flow [3][6] - Datadog's customer base expanded, with approximately 4,060 customers generating over $100,000 in annual recurring revenue (ARR), marking a 16% increase from the previous year [2][6] Financial Highlights - Revenue for Q3 2025 was $886 million, a 28% increase from $690 million in Q3 2024 [28] - GAAP operating loss was $(6) million, with a GAAP operating margin of (1)% [6] - Non-GAAP operating income was $207 million, resulting in a non-GAAP operating margin of 23% [6] - GAAP net income per diluted share was $0.10, while non-GAAP net income per diluted share was $0.55 [6] Business Developments - Datadog reached a milestone of over 1,000 integrations on its unified platform, enhancing its observability capabilities [2][6] - The company was recognized as a leader in the 2025 Gartner Magic Quadrant for Digital Experience Monitoring for the second consecutive year [6] - Datadog expanded its support for Oracle Cloud Infrastructure, including new integrations for GPU Monitoring and Cloud Cost Management [6] Outlook - For Q4 2025, Datadog expects revenue between $912 million and $916 million [6] - The full-year 2025 revenue outlook is projected to be between $3.386 billion and $3.390 billion [12]

Core Insights - Datadog, Inc. is set to release its third-quarter earnings results on November 6, with analysts expecting earnings of 46 cents per share, unchanged from the previous year [1] - The consensus revenue estimate for the quarter is $852.27 million, a significant increase from $690.02 million a year ago [1] - Datadog raised its FY25 guidance on August 7, indicating positive future expectations [1] Stock Performance - Datadog's shares fell by 1.6%, closing at $154.98 on Wednesday [2] Analyst Ratings - Rosenblatt analyst Blair Abernethy maintains a Buy rating with a price target of $170 [4] - BTIG analyst Gray Powell also maintains a Buy rating, increasing the price target from $169 to $184 [4] - Oppenheimer analyst Ittai Kidron has an Outperform rating, raising the price target from $165 to $195 [4] - UBS analyst Karl Keirstead maintains a Buy rating, increasing the price target from $165 to $189 [4] - Bernstein analyst Peter Weed maintains an Outperform rating, boosting the price target from $147 to $170 [4]

Industry Overview - Capital spending related to artificial intelligence (AI) contributed over one percentage point to U.S. economic growth in the first half of 2025, surpassing consumer spending as the main growth driver [1] - Morgan Stanley analysts project AI sales in cloud and software sectors will grow over 600% to exceed $1 trillion annually by 2028 [2] Company: Alphabet - Alphabet is the largest adtech company globally, leveraging platforms like Google Search and YouTube to engage users and gather consumer data [3] - The company holds the third-largest public cloud in terms of cloud infrastructure and platform services, accounting for 13% of CIPS revenue in Q3, up from the start of the year [4] - Alphabet reported Q3 revenue of $102 billion, a 16% increase from the previous year, with GAAP earnings rising 35% to $2.87 per diluted share [5] - Analysts have a median target price of $330 per share for Alphabet, indicating a 19% upside from its current price of $278 [6] - Earnings are expected to grow at 15% annually over the next three years, making the current valuation of 27 times earnings reasonable [7] Company: Datadog - Datadog specializes in observability software, offering a platform with around two dozen products for monitoring IT infrastructure and applications [8] - The company is recognized as a leader in AI for IT operations and observability platforms, supporting generative AI workloads [9] - Datadog's Q2 revenue rose 28% to $827 million, with non-GAAP earnings increasing 7% to $0.46 per diluted share [10] - Wall Street estimates adjusted earnings will grow at 19% annually through 2028, despite a high current valuation of 84 times earnings [11] - Investors with a long-term horizon are encouraged to consider building a position in Datadog [12]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Core Insights - Datadog (DDOG) is expected to report third-quarter 2025 results on November 6, with projected revenues between $847 million and $851 million, indicating a 23% year-over-year growth [1][8] - The Zacks Consensus Estimate for revenues stands at $849.77 million, reflecting a 23.15% increase from the previous year's quarter [1] - Expected diluted non-GAAP earnings per share for the third quarter are between 44 and 46 cents, with the consensus estimate at 45 cents, showing a year-over-year decline of 2.17% [2][8] Revenue Growth Factors - Datadog's expanding security portfolio, including offerings like Code Security and Workload Protection, is anticipated to significantly contribute to revenue growth, with the security suite generating over $100 million in annual recurring revenues, growing at a mid-40% year-over-year rate [3] - The company's engagement with AI-native companies is expected to positively impact performance, as its observability and security platforms are increasingly adopted for monitoring AI-powered applications, leading to higher data volumes and product usage [4] - A solid second-quarter performance, with revenues of $827 million (up 28% year-over-year) and free cash flow of $165 million, has set a strong foundation for the upcoming quarter [5] Margin Pressures - Datadog is likely to face margin pressures due to ongoing investments in research and development and cloud infrastructure to support its growing customer base, which may offset the benefits of strong revenue growth [6][8] Earnings Prediction Model - The Zacks model does not predict a conclusive earnings beat for Datadog this time, as it currently has an Earnings ESP of 0.00% and a Zacks Rank of 2 (Buy) [7][9]

Industry Overview - Cybersecurity has evolved into a constant business risk, with companies facing relentless cyber threats such as ransomware attacks and data breaches, which can damage customer trust and brand reputation [1] - The global cybersecurity market is projected to grow from $193.7 billion in 2024 to nearly $563 billion by 2032, reflecting a compound annual growth rate (CAGR) of 14.4% [2] - The increasing complexity of digital networks, new compliance requirements, and the urgent need to protect critical data are driving this growth [2] Technological Advancements - Traditional security tools are becoming inadequate against smarter and faster attacks, leading to a shift towards artificial intelligence (AI) for proactive threat detection [3] - AI enables companies to analyze large volumes of data and automate detection and response processes, making it a promising solution for modern cybersecurity challenges [3] Key Players - Cisco Systems is integrating AI into its cybersecurity products, with AI infrastructure orders exceeding $2 billion in fiscal 2025, indicating strong demand for its offerings [6][7] - Cisco's data center switching orders are showing solid year-over-year growth, driven by demand for AI-optimized networks [8] - Palo Alto Networks is innovating in AI and cloud security, with its AI-powered platforms like Cortex XSIAM and Prisma AIRS enhancing its competitive edge [10][12] - SailPoint is transitioning from a legacy identity governance provider to a unified security solution provider through its AI and machine learning-enabled offerings [13][14] - Datadog is enhancing its AI-powered observability platform to meet the growing demand for AI-native capabilities [15][16]

Group 1: IonQ - IonQ is currently at its 50-day moving average, with a market cap of $22 billion and a high PE ratio, indicating potential overvaluation concerns in the quantum stock sector [1][3] - The stock is at critical support levels, and a diagonal call spread strategy is being employed, suggesting a bullish outlook if the support holds [2][3] - The trading range of $55 to $65 is highlighted as significant, with potential for a price pop if the critical support area is maintained [6][7] Group 2: DataDog - DataDog is approaching earnings with elevated implied volatility, and the stock is near major resistance levels [9][10] - A diagonal put spread strategy is being utilized, indicating a bearish outlook, with a risk of approximately $1 if the stock moves up [10][12] - The price action shows a symmetrical triangle pattern, with key levels around $140 to $145 and a potential breakout above $164 [12][14] Group 3: Seagate - Seagate has experienced significant momentum following strong earnings, but there are concerns about the sustainability of this rally [15][18] - A bearish iron condor strategy is being implemented, with a credit of approximately $3.50, indicating a short-term trade anticipating a pullback [18][19] - Key resistance levels are identified between $235 and $265, with old highs around $280.35 serving as potential targets for price movement [21][24]