Datadog (DDOG)·Q4 2025 Earnings Summary
Datadog Crushes Q4 as Revenue Jumps 29%, Stock Surges 10% After Hours
February 10, 2026 · by Fintool AI Agent
Datadog delivered a blowout Q4 with record bookings, accelerating revenue growth, and FY2026 guidance well above Street expectations. Revenue of $953 million grew 29% year-over-year (the fastest since Q1 2024), while bookings hit a record $1.63 billion (+37% YoY) . The company signed 18 deals over $10 million in TCV—including two over $100 million and an eight-figure land with a leading AI model company . Shares surged 10% in after-hours trading to $125.56.
Did Datadog Beat Earnings?
Yes — Datadog beat on all key metrics and raised guidance above street consensus.
The beat was driven by broad-based strength. CEO Olivier Pomel noted: "We experienced trends across our business, across our product lines, and across our diverse customer base" . Importantly, revenue growth for the core business excluding AI natives accelerated to 23% YoY from 20% in Q3 .
Ask Fintool AI AgentWhat Did Management Guide?
Datadog's FY2026 guidance came in 4-5% above street consensus, signaling confidence in continued cloud migration and AI adoption tailwinds.
Key guidance note: CFO David Obstler specified that the core business excluding the largest customer is modeled to grow at least 20% during 2026 . This implies the company is being conservative on its largest AI customer given the inherent unpredictability of consumption-based revenue.
How Did the Stock React?
DDOG shares closed regular trading at $114.01 (+2.1%) before jumping +10.1% to $125.56 in after-hours trading following the earnings release.
The stock remains well off its 52-week high of $201.69, with the beat-and-raise potentially marking an inflection point after a challenging 2025 for software valuations.
What Changed From Last Quarter?
Revenue growth accelerated. Q4 growth of 29% YoY was the highest since Q1 2024, up from 28% in Q3.
Core business inflected. The broad-based business (excluding AI natives) accelerated from 20% to 23% growth, with this trend continuing into January .
Bookings hit a record. $1.63 billion in bookings, up 37% YoY .
Enterprise momentum strengthened. $100K+ ARR customers grew 19% to ~4,310; these customers generated 90% of ARR .
Ask Fintool AI AgentProduct ARR Milestones
Datadog's three core pillars all reached significant ARR milestones, with APM accelerating notably:
CEO Pomel emphasized the expansion opportunity: "Even with these three pillars, we're still just getting started, as about half of our customers do not buy all three pillars from us, or at least not yet" .
Multi-Product Adoption Trends
Platform adoption continued deepening, with 9% of customers now using 10+ products:
AI Customer Cohort Deep-Dive
AI-native customers remain a key growth driver, with strong metrics:
CFO Obstler noted that AI-native customer growth "significantly outpaces the rest of the business" , while emphasizing the cohort remains diversified across many customers rather than concentrated.
Key Customer Wins
Management highlighted several major deals closed in Q4:
AI Model Company (8-figure land, biggest new logo ever): Consolidated 5+ observability tools onto Datadog platform. CEO Pomel: "This customer is experiencing very rapid growth. Datadog allows them to focus on product development and supporting their users, which is critical to their business success" .
E-commerce & Payments Platform (8-figure expansion): Standardizing on Datadog APM using OpenTelemetry. Achieved 40% reduction in resolution times. Now using 17 Datadog products .
Fortune 500 Food & Beverage Retailer (7-figure expansion): Consolidating 30+ observability tools. Expected $millions in annual savings from replacing legacy logging. Expanding to 17 products .
Latin American Financial Services (8-figure expansion, 4x commitment): Early renewal with expansion to Data Observability, CI Visibility, Database Monitoring, and Observability Pipelines .
Fintech Company (7-figure expansion): Moving log data onto unified platform. Now using 19 Datadog products .
AI Product & Innovation Update
Datadog released 400+ new features in 2025, with significant AI momentum:
AI for Datadog (Making the platform smarter)
- Bits AI SRE Agent (GA December): 2,000+ trial/paying customers running investigations in past month
- Bits AI Dev Agent: Detects code issues, generates fixes with production context
- Bits AI Security Agent: Autonomously triages SIEM signals, conducts investigations
- MCP Server: Tool calls grew 11x in Q4 vs Q3
Datadog for AI (Observing AI workloads)
- LLM Observability: 1,000+ customers; brands increased 10x in 6 months
- AI Agents Console: Coming soon for monitoring AI agents and coding assistants
- GPU Monitoring: Working with design partners; GPU usage increasing in customer base
- AI Security: Building protections against prompt injection, model hijacking, data poisoning
Q&A Highlights
On Competition and LLMs
Asked about whether customers could use LLMs to build homegrown observability, CEO Pomel was clear: "Observability can help...basically, we're here to understand what the machine does. We try to make sure it's aligned with us...And so we think it's going to bring observability more widely in domains that it didn't necessarily cover before" .
On the competitive moat: "Where the world is going is you're going to have many more changes, many more things. You cannot actually afford to have incidents to look at for everything that's happening in your system. So you'll need to be proactive...for that, you'll need to be embedded into the data plane, which is what we run" .
On Bits AI Value Creation
"When the alternative is you try and solve a problem yourself and you have an outage and you start a bridge, and you have 20 people on the bridge, and they look for 3 hours for the root cause...If the alternative is, in five minutes you have the answer, and you only get three people looking that are the right folks, and you have a fix within 10 minutes...So it's fairly easy to make that case" .
On Customers Building In-House
"The general motion is customers start with some homegrown or attempts to do things themselves, then they move to our product, and they scale with our product...We even see teams at hyperscalers that have all the tooling in the world, all the money in the world, all the know-how in the world, and that still choose to use our products because it gives them a more direct path to solving their problems" .
On Go-to-Market Investments
"The focus now is not necessarily to improve productivity, it's to scale while maintaining productivity...you should expect more scaling for us on the go-to-market side in the year to come" .
Ask Fintool AI AgentFinancial Summary
Q4 2025 Results
Full Year 2025 Results
Balance Sheet
Cash, cash equivalents, and marketable securities totaled $4.47 billion as of December 31, 2025 .
Upcoming Catalyst
Datadog announced an Investor Day on February 12, 2026 in New York City (1:00-5:00 PM ET). CEO Pomel: "I'll be joined by our product and go-to-market leaders to share how we are serving our customers, how we innovate to broaden our platform, and how we are delivering greater value with AI" .
The Bottom Line
Datadog delivered a clean beat-and-raise quarter with record bookings, accelerating growth in both the core business and AI-native cohort, and guidance comfortably above street expectations. The 29% revenue growth in Q4—the highest in over a year—alongside the core business inflection from 20% to 23% growth, suggests the company is benefiting from continued cloud migration and emerging AI workloads. With $1.63B in bookings (+37% YoY), 18 deals over $10M TCV, and strong multi-product adoption trends, Datadog enters 2026 with significant momentum. The Investor Day on February 12 could provide additional catalysts as management details the AI roadmap.
Related: Datadog Company Page · Q4 2025 Earnings Transcript · Q3 2025 Earnings