DDOG · 8-K · 20260806PR053829

Operating Income and Margins

Datadog, Inc. · 2026-08-06 · Importance 69 · Surprise 64

GAAP operating income was $5.5 million in the second quarter versus a $35.5 million operating loss a year earlier, producing a 0% margin versus negative 4%. Non-GAAP operating income increased 57% to $257.0 million from $164.1 million, while non-GAAP operating margin expanded to 23% from 20%. The non-GAAP reconciliation added $220.3 million of stock-based compensation, $27.6 million of employer payroll taxes, $2.0 million of M&A transaction costs, and $1.7 million of acquired-intangible amortization to GAAP operating income.

Key facts

• Non-GAAP operating income for the second quarter was $257 million and non-GAAP operating margin was 23%. source
• Net income for the three months ended June 30, 2026 was $44,558 thousand and net income per share - diluted was $0.12. source
• GAAP operating income for the second quarter was $5 million and GAAP operating margin was 0%. source
• GAAP net income per diluted share for the second quarter was $0.12 and non-GAAP net income per diluted share was $0.65. source
• Weighted average diluted shares used in calculating net income per share for the three months ended June 30, 2026 was 371,023. source