Datadog Q3 Revenue Rises 35% to $1.20 Billion; Non-GAAP EPS $0.81

What happened

Datadog reported third-quarter 2026 revenue of $1.20 billion, up 35% year over year, and GAAP net income of $118.3 million. Non-GAAP earnings per share were $0.81, and operating cash flow was $290.0 million. It forecast fourth-quarter revenue of $1.19 billion to $1.20 billion.

Confirmed

Global impact / market context

Revenue growth alongside positive net income and cash generation indicates the business expanded while producing cash available for operations. The fourth-quarter forecast provides a near-term benchmark: results below its range could pressure expectations, while meeting it would support confidence in continued growth.

Analyst inference

The supplied figures show revenue up 35% from a year earlier, while operating income turned positive from a loss in the prior-year quarter. These comparisons point to stronger reported performance, but the article provides no share-price reaction or valuation data.

Analyst inference

What to watch

1. Compare fourth-quarter revenue with Datadog’s $1.19 billion to $1.20 billion forecast; a shortfall could indicate slower demand and weaken revenue expectations. Analyst inference
2. Track operating cash flow and free cash flow in later reports; sustained cash generation can fund product development and business operations without relying as much on outside financing. Analyst inference
3. Datadog introduced Scout 1.0, an AI model for investigating production issues, and said it is in Preview; the article gives no adoption or revenue figures. Confirmed

Evidence

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