Datadog, Inc. · 2026 Q2
ReportedAug 6, 2026
Period endedJun 30, 2026
Rule of 40+63
Consensus vs reported
EPS · NON-GAAP
BEAT +12%
$0.65
vs $0.58 expected
QoQ—
YoY—
Revenue
BEAT +4%
$1.12B
vs $1.08B expected
QoQ+11.5%
YoY+35.6%
QoQ and YoY are measured on the same basis as each panel's own consensus, so no panel compares two different measures.
Reported this quarter
Revenue
$1.12B
QoQ +11.5%
YoY +35.6%
EPS
$0.65
QoQ +8.3%
YoY +41.3%
Free Cash Flow
$306M
QoQ -5.3%
YoY +65.5%
Gross Margin
78.6%
QoQ -0.6 pp
YoY -1.3 pp
FCF Margin
27.3%
QoQ -4.8 pp
YoY +4.9 pp
Each tile opens the full quarterly series. Download the numbers as CSV or JSON.
What we learned
- The best growth quarter in years lowered the score. Revenue +35.6% — a fourth straight acceleration — added 3.5 points while the free-cash-flow margin gave back 4.9, for a net −1.3 to 62.93 . The metric caught what every headline number missed.
- Two free-cash-flow definitions now disagree by 2.4 points. Datadog subtracts capitalised software as well as property and equipment and reports $279M ; our house definition gives $306M . On Datadog's own basis the score is 60.50 .
- Datadog capitalises 2.8x more software than it spends on physical assets. Property and equipment fell 34.7% to $9.9M while capitalised software rose 39.5% to $27.3M — the latter is five times the entire GAAP operating income, and expensing it as incurred would have kept that line negative.
- GAAP operating margin was 0% on $1.12B of revenue. Operating income of $5.5M , against $257M non-GAAP, with the whole distance being $220M of stock-based compensation — 19.6% of revenue, improving from 21.8%, and still 40x the GAAP profit it sits above.
- Management's own guide ends the streak. Q3 revenue of $1.135–1.145B is +28.2% to +29.3% , a seven-point deceleration.
Read the full analysis: Datadog's Growth Accelerated to 36% and Its Rule of 40 Went Down →
Coverage around this release
R40
Datadog's Growth Accelerated to 36% and Its Rule of 40 Went Down
News · Aug 6, 2026
R40
Our Own Explainer Says the Rule of 40 Captures Stock Compensation 'Not Perfectly'. Here Is How Imperfectly.
News · Aug 2, 2026
R40
Datadog: Growth Reaccelerated to 32% Last Quarter — Q2 2026 Earnings Land August 6
News · Jul 31, 2026
Estimate against reported
Our published estimate
Reported EPS
| Quarter | Estimate | Reported | Surprise |
|---|---|---|---|
| 2025 Q2 | — | $0.46 | — |
| 2025 Q3 | — | $0.55 | — |
| 2025 Q4 | — | $0.59 | — |
| 2026 Q1 | — | $0.60 | — |
| 2026 Q2 | $0.58 | $0.65 | +12% |
Estimates are the consensus we published on our own preview for that quarter; quarters we did not preview carry the reported figure only. Where a consensus was set on a non-GAAP basis, the reported column shows that same measure.
Sources & downloads
Company
Published by the company on the day of the release.
HTML
Earnings press release
Investor relations announcement
SEC filings
Filed with the SEC under CIK 1561550.
JSON
Company facts (XBRL)
Every figure DDOG has reported to the SEC
R40 data
The numbers shown on this page, as we hold them.
CSV
This quarter (CSV)
Reported metrics for 2026 Q2, spreadsheet-ready
JSON
This quarter (JSON)
Metrics, dates and matched filings