With a market cap of $42.4 billion, Datadog, Inc. (DDOG) is a global technology company that provides an observability and security platform for cloud applications. It offers a wide range of products including infrastructure and application performance monitoring, log management, cloud security, and digital experience monitoring.
The New York-based company is slated to announce its fiscal Q4 2025 results soon. Ahead of this event, analysts project DDOG to report a profit of $0.14 per share, a 7.7% rise from $0.13 per share in the year-ago quarter. It has exceeded or met Wall Street's earnings expectations in the past four quarters.
For fiscal 2025, analysts expect the data analytics and cloud monitoring company to report EPS of $0.40, down 14.9% from $0.47 in fiscal 2024. However, EPS is anticipated to grow 20% year-over-year to $0.48 in fiscal 2026.
Shares of Datadog have decreased 11.7% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 16.7% gain and the State Street Technology Select Sector SPDR ETF's (XLK) 27.2% return over the same period.
Shares of Datadog jumped 23.1% on Nov. 6 after the company reported a strong Q3 2025 beat, with adjusted EPS of $0.55 and revenue of $885.65 million, both ahead of forecasts. Investors also reacted positively to strong profitability and cash generation, including $207 million in adjusted operating income, $251 million in operating cash flow, and $214 million in free cash flow. The rally was further fueled by upbeat guidance, with Datadog forecasting Q4 2025 revenue of $912 million - $916 million and adjusted EPS of $0.54 - $0.56, alongside continued growth in large customers to about 4,060 $100k+ ARR customers.
Analysts' consensus view on DDOG stock remains bullish, with an overall "Strong Buy" rating. Out of 43 analysts covering the stock, 34 recommend a "Strong Buy," three "Moderate Buys," five give a "Hold" rating, and one has a "Strong Sell." The average analyst price target for Datadog is $205.99, indicating a potential upside of 73.7% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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