Scotiabank Has Negative Outlook for Datadog FY2026 Earnings

Datadog, Inc. (NASDAQ:DDOG) – Analysts at Scotiabank decreased their FY2026 earnings estimates for Datadog in a report issued on Wednesday, February 11th. Scotiabank analyst P. Colville now forecasts that the company will post earnings per share of $0.31 for the year, down from their prior estimate of $0.33. Scotiabank has a “Sector Outperform” rating and a $160.00 price target on the stock. The consensus estimate for Datadog’s current full-year earnings is $0.34 per share. Scotiabank also issued estimates for Datadog’s FY2027 earnings at $0.74 EPS.

Datadog (NASDAQ:DDOG) last issued its quarterly earnings results on Tuesday, February 10th. The company reported $0.59 EPS for the quarter, beating analysts’ consensus estimates of $0.55 by $0.04. The firm had revenue of $953.19 million for the quarter, compared to analysts’ expectations of $916.53 million. Datadog had a return on equity of 4.14% and a net margin of 3.14%.The business’s revenue for the quarter was up 29.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.49 EPS. Datadog has set its FY 2026 guidance at 2.080-2.160 EPS and its Q1 2026 guidance at 0.490-0.510 EPS.

DDOG has been the topic of a number of other reports. Weiss Ratings reissued a “sell (d+)” rating on shares of Datadog in a report on Wednesday, January 21st. Robert W. Baird set a $180.00 target price on shares of Datadog in a report on Wednesday. Bank of America raised their price target on shares of Datadog from $180.00 to $215.00 and gave the company a “buy” rating in a report on Friday, November 7th. Citizens Jmp restated a “market perform” rating on shares of Datadog in a research report on Wednesday. Finally, Evercore lowered their price objective on Datadog from $215.00 to $175.00 and set an “outperform” rating on the stock in a research report on Monday, February 2nd. Thirty-seven equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $179.50.

Datadog Price Performance

Shares of NASDAQ DDOG opened at $125.20 on Friday. The company has a debt-to-equity ratio of 0.26, a quick ratio of 3.66 and a current ratio of 3.38. Datadog has a fifty-two week low of $81.63 and a fifty-two week high of $201.69. The stock has a market cap of $43.90 billion, a PE ratio of 403.87, a price-to-earnings-growth ratio of 22.88 and a beta of 1.27. The stock has a fifty day moving average of $132.23 and a 200-day moving average of $143.64.

Institutional Trading of Datadog

Several hedge funds have recently added to or reduced their stakes in DDOG. Westside Investment Management Inc. increased its holdings in shares of Datadog by 74.3% in the third quarter. Westside Investment Management Inc. now owns 176 shares of the company’s stock worth $27,000 after buying an additional 75 shares during the period. Rothschild Investment LLC grew its position in Datadog by 126.6% during the 3rd quarter. Rothschild Investment LLC now owns 179 shares of the company’s stock worth $25,000 after acquiring an additional 100 shares during the last quarter. Tripletail Wealth Management LLC bought a new position in Datadog during the 3rd quarter worth approximately $28,000. Physician Wealth Advisors Inc. increased its stake in Datadog by 315.2% in the 3rd quarter. Physician Wealth Advisors Inc. now owns 191 shares of the company’s stock worth $27,000 after purchasing an additional 145 shares during the period. Finally, JPL Wealth Management LLC bought a new stake in Datadog in the third quarter valued at approximately $27,000. 78.29% of the stock is owned by institutional investors.

Insider Transactions at Datadog

In other Datadog news, CEO Olivier Pomel sold 11,195 shares of the company’s stock in a transaction that occurred on Wednesday, December 17th. The stock was sold at an average price of $137.93, for a total value of $1,544,126.35. Following the completion of the sale, the chief executive officer owned 518,133 shares of the company’s stock, valued at $71,466,084.69. This represents a 2.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Adam Blitzer sold 8,023 shares of the stock in a transaction that occurred on Wednesday, December 3rd. The shares were sold at an average price of $154.61, for a total transaction of $1,240,436.03. Following the transaction, the chief operating officer owned 165,197 shares in the company, valued at $25,541,108.17. The trade was a 4.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 582,023 shares of company stock worth $92,269,698. 8.70% of the stock is owned by corporate insiders.

Key Stories Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q4 beat and bullish market reaction — Datadog reported a revenue and EPS beat and gave upbeat AI-related guidance that pushed the shares higher after earnings, supporting the thesis that Datadog can monetize AI-monitoring/security demand. Why Datadog (DDOG) Is Up 8.4% After Strong Q4 2025 Earnings And 2026 Revenue Guidance
• Positive Sentiment: Bullish broker commentary remains — Some sell-side analysts (e.g., Rosenblatt) remain constructive despite a cautious tone from management, reinforcing that several institutional investors still view DDOG as an AI/observability play. Datadog’s (DDOG) Cautious Outlook Doesn’t Shake Rosenblatt’s Bullish View
• Neutral Sentiment: Short-interest reporting is noisy and shows 0 shares (likely a reporting artifact), producing an effectively zero days-to-cover reading — not meaningful market pressure today.
• Neutral Sentiment: Investor commentary that AI isn’t the core problem — analysis arguing that AI fears are overstated and Datadog remains well-positioned may moderate panic selling but doesn’t immediately alter fundamentals. Datadog: AI Isn’t The Main Problem
• Negative Sentiment: Insider selling — CTO Alexis Le-Quoc sold ~43k shares (~$5.5M), trimming his stake ~8% on Feb 11; insider disposals can increase near-term selling pressure or signal liquidity needs. SEC Form 4 — Alexis Le-Quoc Sale
• Negative Sentiment: Multiple price-target downgrades — Needham, BTIG and Wolfe trimmed targets (to $155, $170 and $160 respectively), signalling reduced near-term expectations despite the beat; these downgrades can weigh on sentiment and limit upside. Needham Cuts Datadog Price Target BTIG Cuts Datadog Price Target Wolfe Research Cuts Datadog Price Target
• Negative Sentiment: Analyst concerns on slowing growth, costs and valuation — Several analyst pieces highlight that despite the beat, longer-term growth appears to be slowing, costs are rising and valuation remains rich, which can cap multiple expansion. 3 Reasons to Stay Away From Datadog Stock Despite Q4 Earnings Beat

Datadog Company Profile

Datadog (NASDAQ: DDOG) is a cloud-based monitoring and observability platform that helps organizations monitor, troubleshoot and secure their applications and infrastructure at scale. Its software-as-a-service offering collects and analyzes metrics, traces and logs from servers, containers, cloud services and applications to provide real-time visibility into system performance and health. Datadog’s platform is widely used by engineering, operations and security teams to reduce downtime, accelerate incident response and improve application reliability.

The company’s product suite includes infrastructure monitoring, application performance monitoring (APM), log management, real user monitoring (RUM), synthetic monitoring and network performance monitoring, along with security-focused products such as security monitoring and cloud SIEM.